M/S LOTUS MACHINES PVT. LTD.,CHANDIGARH vs. DCIT, CPC (TDS-1), VAISHALI CURRENT JURISDCITION ITO (TDS-1), CHANDIGARH

Per Sanjay Garg, Judicial Member:

The present appeal has been preferred by the assessee against

the order dated 03.04.2017 of the Commissioner of Income Tax(Appeals)-1, Chandigarh [hereinafter referred to as ‘CIT(A)’].

but the sole issue taken by the assessee through its grounds of

appeal relates to action of Ld. CIT(A) in confirming the levy of fee

u/s 234 E through notice u/s 200A imposed by the Ld. Assessing

officer.

ITA No.1137/Chd/2017- M/s Lotus Machines Pvt Ltd., Chandigarh 2

assessee stated that the fees in the present case was levied while

processing the TDS return u/s 200A of the Act, prior to 01.06.2015,

and that as per the provisions of Section 200A of the Act, which

existed on the date when the above return was processed, no

adjustment on account of fees u/s 234E could be made while

processing the said return u/s 200A of the Act. The ld. counsel for

the assessee pointed out that the mandate to make such adjustment

was provided by the Statute only w.e.f. 01.06.2015 by way of an

amendment made to Section 200A by the Finance Act, 2015. The ld.

counsel for the assessee, therefore, stated that the adjustment made

in the present case of levying fees u/s 234E while processing the

TDS return u/s 200A of the Act was bad in law. The ld. counsel for

the assessee pointed out that the ITAT in a number of cases had

deleted fees levied in identical circumstances holding that prior to

01.06.2015, fees u/s 234E could not be charged by way of making

adjustment while processing TDS return u/s 200A of the Act. Our

attention was drawn to the following case laws in support of the

above proposition:

by the aforesaid decisions of the Tribunal.

ITA No.1137/Chd/2017- M/s Lotus Machines Pvt Ltd., Chandigarh 3

Sd/- Sd/-

(B.R.R.KUMAR) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated : 14.05.2018 Rkk

Copy to: • The Appellant • The Respondent • The CIT • The CIT(A) • The DR