TMI Blog2015 (11) TMI 1199X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 200A of the Act, the Assessing Officer cannot make any adjustment by levying fee under Section 234E prior to 01.06.2015. See M/s Neelagiris Textiles v. DCIT [2015 (7) TMI 639 - ITAT CHENNAI] In the case before us, the Assessing Officer levied fee under Section 234E of the Act while processing the statement of tax deducted at source under Section 200A of the Act. Therefore, this Tribunal is of the considered opinion that the fee levied by the Assessing Officer under Section 234E of the Act while processing the statement of tax deducted at source is beyond the scope of adjustment provided under Section 200A of the Act. Therefore, such adjustment cannot stand in the eye of law. - Decided in favour of assessee. - ITA No.1039, 1040, 10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .T.A. Nos.795 to 797/Mds/2015 dated 10.07.2015. This Tribunal found that prior to 01.06.2015, the Assessing Officer had no power to make adjustment by levying fee under Section 234E of the Act. This Tribunal has also found that Section 200A of the Act was amended by Finance Act, 2015 with effect from 01.06.2015 enabling the Assessing Officer to make adjustment levying fee under Section 234E of the Act. Accordingly, this Tribunal found that the Assessing Officer cannot levy fee while making the adjustments under Section 200A of the Act in respect of statement filed by the assessee. In fact, this Tribunal has observed as follows in Neelagiris Textiles (supra) as follows:- 6. We have considered the rival submissions on either side and peru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntimation under this sub-section shall be sent after the expiry of one year from the end of the financial year in which the statement is filed. Explanation - For the purposes of this sub-section, an incorrect claim apparent from any information in the statement shall mean a claim, on the basis of an entry, in the statement- (i) of an item, which is inconsistent with another entry of the same or some other item in such statement ; (ii) in respect of rate of deduction of tax at source, where such rate is not in accordance with the provisions of this Act ; (2) For the purposes of processing of statements under sub-section (1), the Board may make a scheme for centralised processing of statements of tax deducted at source to exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act for making adjustment in respect of the statement filed by the assessee with regard to tax deducted at source by levying fee under Section 234E of the Act. The Parliament for the first time enabled the Assessing Officer to make adjustment by levying fee under Section 234E of the Act with effect from 01.06.2015. Therefore, as rightly submitted by the Ld.counsel for the assessee, while processing statement under Section 200A of the Act, the Assessing Officer cannot make any adjustment by levying fee under Section 234E prior to 01.06.2015. In the case before us, the Assessing Officer levied fee under Section 234E of the Act while processing the statement of tax deducted at source under Section 200A of the Act. Therefore, this Tribunal is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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