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2019 (8) TMI 99 - AT - Income TaxCharging of fee u/s 234E - intimation u/s 200A for the default in furnishing e-TDS statement for the period prior to 1st June, 2015 - difference of opinion between different High Courts - AR relied Judgment of Karnataka High Court in the case of Fatheraj Singhvi vs. Union of India [2016 (9) TMI 964 - KARNATAKA HIGH COURT] which had laid down a clear proposition that the amendment to section 200A w.e.f. 1-6-2015 has prospective effect and is not applicable for the period of respective assessment years prior to 1-6- 2015. - whereas DR relied on Gujarat High Court in the case of Rajesh Kourani v. Union of India [2017 (7) TMI 458 - GUJARAT HIGH COURT] which held that it was always open for the Revenue to charge fees in terms of section 234E since, the returns of TDS were filed after 2016 and were processed after 2016 when there was enabling provision in section 200A for levying late fees u/s 234E HELD THAT:- We therefore find that though there has been a delay in filing of TDS returns, however, in all these cases, the TDS return has been filed and processed much before 1.6.2015 and none of the three cases involved a case of continuing default where the assessee has defaulted in furnishing the TDS statement even after 01.06.2015. In view of the settled law that where there is difference of opinion between different High Courts on an issue, then the one in favour of assessee needs to be followed as held by the Hon’ble Supreme Court in Vegetable Products Ltd [1973 (1) TMI 1 - SUPREME COURT] . In the absence of any decision by the jurisdictional High Court, the decision of the Hon’ble Karnataka High Court supports the case of the assessee. In light of above discussion and in the entirety of facts and circumstances of the case, there is no basis for levy of fees u/s 234E and the same is hereby directed to be deleted in all three cases - appeals allowed
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