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2015 (12) TMI 290 - ITAT AHMEDABAD

2015 (12) TMI 290 - ITAT AHMEDABAD - TMI - Levy of late filing fees under section 234E - intimation issued under section 200A in respect of processing of TDS - Held that:- As the provisions accepting levy of late filing fees under section 234E have indeed been brought to the statute w.e.f. 1st June, 2015 and the impugned order was passed much before that date we hereby delete the levy of late filing fees under section 234E of the Act by way of impugned intimation issued. See Indian Overseas Bank .....

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r the assessee has pointed out that there was a delay of 35 days in filing of appeal before he CIT|(A). The assessee has moved an application for condonation of delay. But the ld.First Appellate authority has dismissed the application by observing that the assessee failed to submit the TDS return in time, and thereafter, did not challenge the order of the DCIT, CPC, TDS in time. It suggests that assessee is a negligent entity. 3. With the assistance of the ld.representatives, we have gone throug .....

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barred. There could not be any mala fide intention. The delay had been caused on account of human error. Therefore, we condone the delay and proceed to decide the appeal of the assessee on merit. The assessee has taken six grounds of appeal in ITA No.2282/Ahd/2015 and five grounds in ITA No.2283/Ahd/2007. The learned counsel for the assessee did not press any ground of appeal except the levy of late fee amounting to ₹ 10,400/- and ₹ 6,600/- under section 234E of the Income Tax Act, .....

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the quarter-3 and ₹ 6,600/- for the quarter no.4. The ld.First Appellate Authority has upheld the levy of fees by dismissing the appeal of the assessee being time barred. Since, the ld.First Appellate Authority has not adjudicated the issue on merit, therefore, in normal circumstances, we ought to have set aside the issue to the file of the CIT(A), but along with these two appeals, we have heard six more appeals on identical issues. The issue in dispute is squarely covered by the decision .....

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quarely covered in favour of the assessee by the decision of ITAT Amritsar Bench in the case of Sibia Healthcare Private Limited vs. DCIT - ITA No.90/Asr/2015, vide order dated 9th June, 2015, wherein the Division Bench has inter alia observed as under :- 4. We have heard the rival contentions, perused the material on record and duly considered facts of the case in the light of the applicable legal position. In addition to his argument on the merits, learned counsel has also invited our attentio .....

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771 of 2014], granting stay on the demands raised in respect of fees under section 234E. The full text of these decisions were not produced before us. However, as admittedly there are no orders from the Hon ble Courts above retraining us from our adjudication on merits in respect of the issues in this appeal, and as, in our humble understanding, this appeal requires adjudication on a very short legal issue, within a narrow compass of material facts, we are proceeding to dispose of this appeal o .....

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able to pay, by way of fee, a sum of two hundred rupees for every day during which the failure continues. (2) The amount of fee referred to in sub-section (1) shall not exceed the amount of tax deductible or collectible, as the case may be. (3) The amount of fee referred to in sub-section (1) shall be paid before delivering or causing to be delivered a statement in accordance with sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C. (4) The provisions of this section .....

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ocessing of statements of tax deducted at source (1) Where a statement of tax deduction at source, or a correction statement, has been made by a person deducting any sum (hereafter referred to in this section as deductor) under section 200, such statement shall be processed in the following manner, namely:- (a) the sums deductible under this Chapter shall be computed after making the following adjustments, namely:- (i) any arithmetical error in the statement; or (ii) an incorrect claim, apparent .....

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determined to be payable by, or the amount of refund due to, him under clause (c); and (e) the amount of refund due to the deductor in pursuance of the determination under clause (c) shall be granted to the deductor: Provided that no intimation 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 statem .....

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he tax payable by, or the refund due to, the deductor as required under the said subsection. 7. By way of Finance Act 2015, and with effect from 1st June 2015, there is an amendment in Section 200A and this amendment, as stated in the Finance Act 2015, is as follows: In section 200A of the Income-tax Act, in sub-section (1), for clauses (c) to (e), the following clauses shall be substituted with effect from the 1st day of June, 2015, namely:- (c) the fee, if any, shall be computed in accordance .....

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lause (d); and (f) the amount of refund due to the deductor in pursuance of the determination under clause (d) shall be granted to the deductor. 8. In effect thus, post 1st June 2015, in the course of processing of a TDS statement and issuance of intimation under section 200A in respect thereof, an adjustment could also be made in respect of the fee, if any, shall be computed in accordance with the provisions of section 234E . There is no dispute that what is impugned in appeal before us is the .....

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deductor after making the following adjustments: (a). after making adjustment on account of arithmetical errors and incorrect claims apparent from any information in the statement - Section 200A(1)(a) (b). after making adjustment for interest, if any, computed on the basis of sums deductible as computed in the statement . - Section 200A(1)(b) 9. No other adjustments in the amount refundable to, or recoverable from, the tax deductor, were permissible in accordance with the law as it existed at t .....

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of fees on the basis of the provisions of Section 234E. That is not the issue here. The issue is whether such a levy could be effected in the course of intimation under section 200A. The answer is clearly in negative. No other provision enabling a demand in respect of this levy has been pointed out to us and it is thus an admitted position that in the absence of the enabling provision under section 200A, no such levy could be effected. As intimation under section 200A, raising a demand or direc .....

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