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2019 (6) TMI 241 - AT - Income TaxFee for default in furnishing statements - fine levied u/s 234E - whether no appeal is maintainable against an order passed under section 234E? - HELD THAT:- The learned CIT(A), while holding that these orders were passed independently u/s 234E and therefore no appeal is maintainable, failed to take note the amendment carried out in Section 200A(1) with effect from 1st June 2015. It is pertinent to note that Section 200 casts a duty upon the person deducting tax to deposit the same with the Central Government. Sub-section (3) requires to submit statement of such deduction in prescribed form within prescribed time limit as provided under Rule 31AA of the Income-tax Rules, 1962. Such statements are to be processed u/s 200A and, while carrying out this exercise of processing, the Assessing Officer can levy fine as per Section 234E . A procedure has been provided for processing the statement of deduction of tax u/s 200A. It is a machinery provision and the Assessing Officer is required to follow the procedure contemplated under this section. In the absence of this procedure, a fine could be levied u/s 234E because it was a charging section; but, once a procedure has been provided by the legislature, then it does not give discretion to the Assessing Officer whether he is exercising such powers u/s 234E or he is exercising the powers while processing the statements. It is true that in the present case statements were not filed, but this fact came to the notice of the Assessing Officer while passing the order u/s 206C(6)/206C(7). He processed that fact from the date on which statements ought to be filed by the assessee. Once a procedure has been provided, then it is to be construed that the order has been passed by the Assessing Officer after following the procedures. Merely by mentioning Section 234E in the title of the order, it would not become an order passed u/s 234E in isolation - more particularly when subsequent development shows that these orders are patently invalid and not sustainable, because their foundation holding the assessee in-default and calculating fine from the date of default has been extinguished after the orders of the CIT(A) passed against the orders passed u/s 206C(6)/206C(7). CIT(A) has held that the assessees were not liable to collect TCS. In that situation, subsequent orders passed u/s 234E r.w.s. 200A would become without any jurisdiction and invalid. Orders of the CIT(A) against the orders of the Assessing Officer u/s 206C(6)/206C(7) have been placed in the cases of Rakesh B. Laddha, Jayesh K. Dangariya and Parag M. Parsana. In the case of Vishal Enterprise, no such order has been placed. Therefore, taking cognizance of the orders of the CIT(A) in these three cases, we quash the impugned order passed by the Assessing Officer in their cases on 17.03.2007. So far as the order passed in the case of Vishal Enterprise is concerned, we remit this issue to the file of the Assessing Officer. In case the assessee produces the order of higher appellate authority holding that no tax was required to be collected, then learned Assessing Officer shall rectify his order.
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