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2022 (8) TMI 260 - Income Tax
Late Fee under section 234E - levy of late fee in the course of intimation under section 200A - levy of late fee under section 234E in furnishing the statements of TDS was inserted vide Finance Act 2012, w.e.f 01.06.2015 - HELD THAT:- On careful perusal of the decision of Hon'ble Jurisdictional High Court in Rajesh Kourani [2017 (7) TMI 458 - GUJARAT HIGH COURT] we find that that jurisdiction high court in para-20 of the decision has clearly dissented with the decision of Hon'ble Karnataka High Court in Fatheraj Singhvi [2016 (9) TMI 964 - KARNATAKA HIGH COURT] and held that even in absence of section 200A with introduction of section 234E, it was always open for the revenue to demand and collect the fee for late filing of the statements.
Without a regulatory provision being found for section 200A for computation of fee, the fee prescribed under section 234E cannot be levied is not acceptable. Any such view would amount to a charging section yielding to the machinery provision. If at all, the recasted clause (c) of sub-section (1) of section 200A would be in nature of clarificatory amendment. Even in absence of such provision, as noted, it was always open for the revenue to charge the fee in terms of section 234E. By amendment, this adjustment was brought within the fold of section 200A. This would have one direct effect.
An order passed under section 200A is rectifiable under section 154 and is also appealable under section 246A. In absence of the power of authority to make such adjustment under section 200A, any calculation of the fee would not partake the character of the intimation under said provision and it could be argued that such an order would not be open to any rectification or appeal. Upon introduction of the re-casted clause (c), this situation also would be obviated. Even prior to 1- 6-2015, it was always open for the revenue to calculate fee in terms of section 234E. Section 200A is not a source of substantive power. Substantive power to levy fee can be traced to section 234E.
It is settled position under legal hierarchy that decision of Hon'ble jurisdictional High Court is having binding precedent, in absence of any decision of Hon'ble Apex Court. Thus, all the submissions which is raised by Ld. AR for the assessee is not helpful to him. Therefore, respectfully following the ratio of law that section 234E is a charging provision creating a charge for levying of fee for certain default in filing statement, and the fee prescribed under this section could be levied even without a regulatory provision being found in section 200A for computation of fee. - Appeal of assessee allowed.