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Income Tax Appellate Tribunal, DIVISION BENCH, ‘B’ CHANDIGARH
Before: SHRI SANJAY GARG & DR. B.R.R. KUMAR
Per Sanjay Garg, Judicial Member:
The present appeal has been preferred by the assessee against
the order dated 27.10.2017 of the Commissioner of Income Tax(Appeals), Shimla [hereinafter referred to as ‘CIT(A)’].
The sole ground taken by the assessee in its appeal is as under:- That Ld. CIT(A) has erred in law and facts of the case by upholding levy of fee u/s 234 E through notice u/s 200A imposed by the Ld. Assessing officer.
During the course of hearing before us, ld. counsel for the
assessee stated that the fees in the present case was levied while
ITA No.1707/Chd/2017- St. Bedes Educational Society, Shimla 2
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:
M/s Khanna Watches Ltd. V DCIT CPC(TDS) ITA 731 to 735/CHD/2015 dated 29.10.2015
Sibia Healthcare Pvt. Ltd. Vs DCIT (2015) 121 ITR 81 (Amritsar)
M/s Sonaiac Paints & Coatings Ltd. Vs. DCIT – ITA No. 1158/Chd/2017 order dated 1.2.2018
The Ld. DR fairly admitted that the issue is squarely covered
by the aforesaid decisions of the Tribunal.
In view of above, the addition made by the Assessing officer
ITA No.1707/Chd/2017- St. Bedes Educational Society, Shimla 3
on account of fee u/s 234E of the Act while processing the return u/s 200A is being without authority of law and the same is directed to be deleted. In the result, the appeal of the assessee is hereby allowed.
Sd/- Sd/-
(B.R.R.KUMAR) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated : 09.05.2018 Rkk
Copy to: • The Appellant • The Respondent • The CIT • The CIT(A) • The DR