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2020 (9) TMI 529 - AT - Income TaxFee levied u/s 234E - late filing of e-TDS statement - Intimation u/s 200A - Low tax effect - maintainability of revenue appeal - CIT- A deleted levy of fee - HELD THAT:- Whether a particular provision is within the four corners of the Constitution is a matter which falls in the exclusive domain and jurisdiction of the Courts and the ld CIT(A) doesn’t have any authority and jurisdiction to hold any provisions as constitutionally not valid. In the present case, we are of the considered view that he has not breached his authority and jurisdiction in this regard while passing the impugned order. Revenue may have other grievances against his order passed by the ld CIT(A) deleting the fee u/s 234E on merits of the case, however, as far as Para 10(a) of the CBDT Circular no. 3 of 2018 as amended is concerned, the exception carved out therein is not applicable in the present case. Second exception 10(e) as contended that fee u/s 234E has been levied basis the information and processing of TDS statement by Central Processing Centre, which is an external agency and therefore, the said exception is applicable in the instant case - In the instant case, the assessee has filed his TDS statement on TRACES which is an IT platform managed and run by the Tax Department - As per the Revenue’s own submission, DCIT, CPC-TDS Ghaziabad holds concurrent jurisdiction with the Assessing Officer(TDS)-3, Jaipur over the case, as per the provisions of Section 120 read with 124 of the Income Tax Act, 1961. Even though CPC has its separate and identifiable functions relating to TDS returns, the officers hold concurrent jurisdiction over such TDS matters with that of the AO, there cannot be any dispute that both administratively and functionally, the CPC of the Department is part of Income Tax Department and is therefore clearly not an external law enforcement agency qua Income Tax department and that too, as specified in the aforesaid exception. Therefore, in the instant case, where the TDS statement has been processed by the CPC and while processing the same, fee u/s 234E has been levied having tax effect less than the prescribed limit, it will continue to be governed by low tax effect circular issued by the CBDT which is binding on the Revenue. Present appeal filed by the Department is dismissed on account of low tax effect given that the matter is not covered by any of the exceptions so specified and the contentions advanced by the ld DR on merits of the case are left open and not adjudicated upon. - Decided in favour of assessee.
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