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2022 (9) TMI 1019 - AT - Income TaxRectification of mistake u/s 154 - late fee levied u/s. 234E - delay in filing the above TDS statement - intimation u/s 200A - assessee filed application u/s.154 before the AO pointing out that the provisions of section 234E of the Act was inserted by the Finance Act, 2012 w.e.f. 1.7.2012 - HELD THAT:- We are satisfied that the mention of 200A in sub column of column 4.1 of Form 35 cannot be basis to hold that the appeal filed by the assessee is an appeal against the original intimation under section 200A of the Act and not against the order under section 154 - In the given facts and circumstances of the case, we are of the view that there is no delay in filing appeal by the assessee before CIT(A) and the view taken by the CIT(A) is purely technical and on a wrong reading of Form No.35 filed by the assessee before the CIT(A). CIT(A) having held that the appeal filed by the assessee is an appeal against the original intimation under section 200A dated 06.07.2018 has also observed that the issue sought to be raised by the assessee in the application under section 154 is a highly debatable issue. By doing so, in our view, CIT(A) has also construed the appeal of the assessee as one against the order u/s 154 - This inference is supported from the observations made by the CIT(A) on the debatable nature of the issue raised by the assessee in the application u/s.154 of the Act. It is not in dispute that if the ratio laid down by the Hon’ble Karnataka High Court in the case of Fateeraj Singhvi [2016 (9) TMI 964 - KARNATAKA HIGH COURT] if applied then the levy of interest u/s.234-E of the Act would be illegal for returns of TDS in respect of the period prior to 1.6.2015. The present appeals of the assessee relate to TDS returns filed prior to 1.6.2015. The decision of Fateeraj Singhvi (supra)was rendered on 26.8.2016. As rightly contended by assessee, there is no ambiguity in the non applicability of the provisions of section 200A of the Act for the period prior to 01.06.2015 as interpreted in the case of Fateeraj Singhvi (supra). Therefore the issue before the AO in the application under section 154 of the Act cannot be said to be a debatable issue on which two views are possible. It cannot also be said that the mistake is not obvious and patent. The law is well settled that the decision of the Jurisdictional High Court is binding on the authorities functioning under its jurisdiction. AO as well as the CIT(A) ought to have allowed the application of the assessee under section 154 of the Act by following law laid down in the case of Fateeraj Singhvi (supra). We, therefore, allow these appeals filed by the assessee and hold that the levy of interest under section 234E of the Act as detailed below cannot be sustained - Decided in favour of assessee.
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