OM PRAKASH & SONS,DEHRADUN vs. ITO (TDS), DEHRADUN

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ITA 97/DDN/2019Status: DisposedITAT Dehradun29 April 2022AY 2013-144 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the amendment to Section 200A, which allowed for the computation of fee under Section 234E, was prospective and effective from June 1, 2015. Therefore, levying such fees for defaults prior to this date was not sustainable.

What were the facts?

The appeals concerned the levy of late fee under Section 234E for delayed filing of TDS statements for periods prior to June 1, 2015. The Assessing Officer had issued notices for payment of late fee under Section 200A for these delays.

What were the issues?

Whether the late fee under Section 234E, as enabled by the amendment to Section 200A, could be levied for defaults occurring before the effective date of the amendment (June 1, 2015).

Which sections of the Income-tax Act were involved?

Section 200A,Section 234E

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(2)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, DEHRADUN BENCH, DEHRADUN

Before: Dr. B. R. R. KumarSh. Yogesh Kumar US

Hearing: 27.04.2022Pronounced: 29.04.2022

Heard together (3 matters)

ITA No. 97/DDN/2019
ITA No. 98/DDN/2019
ITA No. 99/DDN/2019

Read from the judgment's own cause title. This page is filed under one of them.

ORDER

Per Dr. B. R. R. Kumar, Accountant Member:

1.

The present appeals have been filed by the assessee against the orders of ld. CIT(A), Dehradun dated 27.06.2019.

2. All the above mentioned cases deal with the similar issue involving varying amounts, hence are being adjudicated by a common order.

3.

The issue pertains to levy of fee u/s 234E for the A.Y. 2013-14, 2014-15 and 2015-16. The amendment has been brought w.e.f. 01.06.2015. This issue has been adjudicated by the Co-ordinate Bench of ITAT in vide order dated 25.02.2022. For the sake of ready reference, the entire order of the ITAT is reproduced as under:

All the above mentioned cases deal with the similar issue involving varying amounts, hence are being adjudicated by a common order.

2.

The ACIT/ITD(TDS-CPC) issued notice for payment of late fee u/s 200A of the Income Tax Act, 1961 for delay in filing of quarterly TDS statement for fourth quarter for the financial years 2013-14 & for all the quarters of F.Y. 2014-15 and in all the cases for the quarter ending prior to 01.06.2015.

3. The First Appellate Authorities have held that the fee was leviable u/s 200A for filing of returns.

4.

The provisions of 200A(1)(c) inserted by the Finance Act 2015 w.e.f. 01.06.2015 reads as under:

200A. (1) Where a statement of tax deduction at source or a correction statement has been made by a person deducting any sum (hereafter referred to in this section as deductor) under section 200, such statement shall be processed in the following manner , namely:— (a) the sums deductible under this Chapter shall be computed after making the following adjustments, namely:— (i) any arithmetical error in the statement; or (ii) an incorrect claim , apparent from any information in the statement; (b) the interest, if any, shall be computed on the basis of the sums deductible as computed in the statement; (c) the fee, if any, shall be computed in accordance with the provisions of section 234E;

5.

In the absence of any machinery provisions to charge the late fee u/s 200A, the issue of levy of fee u/s 234E which was

6.

The Hon’ble Karnataka High Court in case of Fatehraj Singhvi & Ors. vs. UOI & Ors. 2016 (9) TMI 964 is in favour of the assessee holding that the amendments brought in statute w.e.f. 01.06 .2015 are prospective in nature and as such, notices issued u/s 200A of the Act for computation and intimation o f payment of late filing fee u/s 234E of the Act relating to the period of tax deduction prior to 01.06.2015 was not maintainable.

7.

At the same time, the Hon’ble Gujarat High Court in case of Rajesh Kourani vs. UOI (2017) 83 taxmann.com 137 has decided the issue against the assessee.

8.

Under these circumstances, we are of the considered view that the decision rendered by Hon’ble Supreme Court in the case of Vegetable products Limited 88 ITR 192 (SC) pronouncing that, when there are conflicting decisions the view taken in favour of the assessee should be followed is relevant to adjudication of the matter before us. Hence, the impugned order passed by the First Appellate Authorities confirming the late fee levied by the AO u/s 200A read with section 234E in all the cases wherein the defaults were prior to 01.06.2015 is not sustainable in the eyes of law.

9.

As a result, the fee levied u/s 234E is hereby ordered to be deleted.

10.

In the result, the appeals of the assessee are allowed Order Pronounced in the Open Court on 25/02/2022.”

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