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2022 (11) TMI 771 - AT - Income TaxRectification of mistake u/s 154 - levying late-fee u/s 234E which was not leviable for period prior to 01.06.2015 - HELD THAT:- Late fee u/s 234E could not have been levied in the intimations u/s 200A for delay in filing quarterly returns of TDS for the period prior to 01.06.2015 Therefore, by levying late-fee which was not leviable, the Ld. AO has certainly committed a mistake apparent on record. Additionally, we also observe that under the scheme of Income-tax Act, 1961, the assesseee have two remedies against the intimation u/s 200A, viz. (i) file rectification-application u/s 154, or (ii) file appeal u/s 246A. We observe that the remedy to file rectification u/s 154 is not only one of the available remedies but also a simpler remedy and practically resorted to by many of the assessees, particularly in the matter of the late-fee u/s 234E wrongly levied by revenue-authorities. We find that it is not a case of revenue that the rectification-application u/s 154 against the intimation u/s 200A is absolutely barred in the scheme of the Act. We also observe that when the late-fee is not leviable in the law and on facts, by levying the same the assessees have been fastened with the liability beyond and against the scheme of the Act, which should not happen. In this regard, we gainfully refer a recent decision in the case of Akbar Mohammad, Nagaur [2022 (2) TMI 479 - ITAT JODHPUR] Thus having observed that there was an apparent mistake in the intimations sent by Ld. AO u/s 154, we are inclined to accept that the Ld. CIT(A) is not justified in dismissing the appeals of assessees. Therefore, Ground No. 1 is allowed. Validity of charging late-fee u/s 234E in the intimations issued u/s 200A for delay in filing quarterly-returns of TDS relatable to the period prior to 01.06.2015 - HELD THAT:- As section 200A(1) was amended w.e.f. 01.06.2015 by inserting clause (c) therein and it is only thereafter the authorities were enabled to charge latefee in the intimations u/s 200A. Therefore, it is very much clear that the authorities did not have any power to charge late-fee in respect of returns related to the period prior to 01.06.2015. See M/s. Keshav Industries Pvt. Ltd. [2020 (7) TMI 812 - ITAT INDORE] & Mr. Rajendra Prasad Tiwari [2020 (7) TMI 812 - ITAT INDORE] Thus no hesitation in concluding that the late-fee levied u/s 234E levied by Ld. AO in the intimations made u/s 200A is illegal and deserves to be deleted. We, therefore, direct the Ld. AO to rectify intimations and delete the late-fee charged therein. Thus, the assessee succeeds in Ground No. 2 to 5.
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