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2018 (5) TMI 1960 - AT - Income TaxLevy of late filing fee u/s. 234E against the order passed u/s. 200A - scope of amendment - HELD THAT - The issue before the Hon ble Bombay High Court in the case of Rashmikant Kundalia 2015 (2) TMI 412 - BOMBAY HIGH COURT was with respect to constitution validity of the section introduced by Finance Act 2015 w.e.f. 01/06/2015 but was not abreast of the applicability of section 234E of the Act by the AO while processing TDS statement. So far as in LAKSHMINIRMAN BANGALORE PVT. LTD. AND OTHERS 2015 (8) TMI 379 - KARNATAKA HIGH COURT it was held that intimation raising demand prior to 01/06/2015 u/s 200A of the Act levying fee u/s 234E is not valid . Respectfully following the aforesaid decision of the Coordinate Bench hold that amendment in section 200A(1) of the Act is procedural in nature therefore the AO while processing the TDS statements returns in the present set of appeals of the period prior to 01/06/2015 was not empowered to charge fee u/s 234E of the Act hence the intimation issued by the Assessing Officer u/s 200A in the appeals before us does not stand therefore the demand raised by way of charging fee u/s 234E is not valid resultantly the same is deleted as the intimation issued by the Assessing Officer in the present case for the period prior to 01/06/2015 is beyond the scope of adjustment provided u/s 200A of the Act. Thus the appeals of the assessee are allowed.
Issues Involved:
1. Levy of late filing fee under Section 234E. 2. Authority of the Assessing Officer to charge fees under Section 234E prior to the amendment effective from 01.06.2015. 3. Maintainability of appeals against intimation issued under Section 200A. 4. Retrospective or prospective application of the amendment to Section 200A. Detailed Analysis: 1. Levy of Late Filing Fee under Section 234E: The primary issue was the confirmation of the levy of late filing fees under Section 234E for the late furnishing of TDS statements. The Assessee contested the levy of Rs. 56,943/- for the second quarter of FY 2012-13, arguing that the Assessing Officer did not have the authority to levy such fees prior to the amendment effective from 01.06.2015. 2. Authority of the Assessing Officer to Charge Fees under Section 234E Prior to 01.06.2015: The Tribunal examined whether the Assessing Officer had the power to charge fees under Section 234E while processing TDS statements before the amendment effective from 01.06.2015. The Tribunal referred to various case laws, including the decision of the Pune Bench in the case of Gajanan Constructions vs. DCIT, which concluded that the Assessing Officer did not have such authority prior to the amendment. The Tribunal noted that Section 200A, which deals with the processing of TDS statements, was amended to include the levy of fees under Section 234E only from 01.06.2015. Therefore, any levy of fees for periods before this date was deemed invalid. 3. Maintainability of Appeals Against Intimation Issued Under Section 200A: The Tribunal addressed whether appeals against intimations issued under Section 200A, which included the levy of fees under Section 234E, were maintainable. It was concluded that such intimations are indeed appealable under Section 246A of the Act. The Tribunal noted that the intimation generated after processing TDS statements is subject to rectification under Section 154, appealable under Section 246A, and deemed as a notice of payment under Section 156. Therefore, the CIT(A) should have examined the legality of the adjustments made under the intimation issued under Section 200A. 4. Retrospective or Prospective Application of the Amendment to Section 200A: The Tribunal discussed whether the amendment to Section 200A, which empowered the Assessing Officer to levy fees under Section 234E, was retrospective or prospective. The Tribunal concluded that the amendment is prospective, effective from 01.06.2015, and cannot be applied to periods before this date. This conclusion was supported by the Memorandum explaining the Finance Bill, 2015, which stated that the amendment was to enable the computation of fees payable under Section 234E at the time of processing TDS statements. The Tribunal also referred to the decision of the Hon'ble Karnataka High Court in Fatheraj Singhvi v. Union of India, which held that intimation raising demand prior to 01.06.2015 under Section 200A, levying fees under Section 234E, is not valid. Conclusion: The Tribunal held that the Assessing Officer was not empowered to charge fees under Section 234E while processing TDS statements for periods prior to 01.06.2015. Consequently, the intimation issued by the Assessing Officer under Section 200A for such periods does not stand, and the demand raised by way of charging fees under Section 234E is invalid. The appeals filed by the Assessee were allowed, and the demand raised by the Assessing Officer was deleted.
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