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Wonder Waves Entertainment Pvt. Ltd. Versus DCIT, CPC, TDS,

2015 (10) TMI 2477 - ITAT AHMEDABAD

Levy of fees under section 234E - intimation issued under section 200A in respect of processing of TDS - Held that:- We find that the issue in all these appeals is now squarely covered in favour of the assessee by the decision of ITAT Amritsar Bench in the case of Sibia Healthcare Private Limited vs. DCIT [2015 (6) TMI 437 - ITAT AMRITSAR] adjustment in respect of levy of fees under section 234E was indeed beyond the scope of permissible adjustments contemplated under section 200A.

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e case, the impugned levy of fees under section 234E is unsustainable in law. We, therefore, delete the impugned levy of fee under section 234E of the Act. - Decided in favour of assessee. - ITA Nos: 2143 to 2146/AHD/2015 - Dated:- 14-10-2015 - SHRI RAJPAL YADAV, JUDICIAL MEMBER & SHRI MANISH BORAD, ACCOUNTAT MEMBER Appellant by : Shri P.M. Mehta with G.M. Thakor, A.R. Respondent by : Smt. Smiti Samant, Sr. D.R. ORDER PER RAJPAL YADAV, JUDICIAL MEMBER 1. The present four appeals are directed .....

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on 28th May, 2014, thus there was a delay in the submission of the statement. The Department has processed the statement u/s. 200A and raised a demand of ₹ 41,005/- as a late fee charged u/s. 234E of the Income Tax Act. Under identical circumstances, the late fees of ₹ 45,530/- has been charged for the 2nd Quarter, ₹ 27,860 for the 3rd Quarter and ₹ 2600/- for the last Quarter. The Ld. First Appellate Authority has confirmed the charging of late fee u/s. 234E of the Act. .....

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fee u/s. 234E, because such an adjustment is beyond the scope of permissible adjustment contemplated u/s. 200A. The ld. Counsel for the Assessee further contended that this order has been followed by ITAT, Ahmedabad SMC Bench in the case of Indian Overseas Bank vs. D.C.I.T. He placed on record the copies of both these orders. 5. The Ld. D.R. on the other hand relied upon the orders of Ld. Revenue Authorities. 6. We have duly considered the rival contentions and gone through the record carefully. .....

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Courts, including Hon ble Kerala High Court, in the case of Narath Mapila LP School Vs Union of India [WP (C) 31498/2013(J)], Hon ble Karanataka High Court in the case of Adithya Bizor P Solutions Vs Union of India [WP No. 6918-6938/2014(T-IT), Hon ble Rajasthan High Court in the case of Om Prakash Dhoot Vs Union of India [WP No. 1981 of 2014] and of Hon ble Bombay High Court in the case of Rashmikant Kundalia Vs Union of India [WP No. 771 of 2014], granting stay on the demands raised in respec .....

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4E of the Act, which was inserted by the Finance Act 2012 and was brought into effect from 1st July 2012. This statutory provision is as follows: 234E. Fee for defaults in furnishing statements (1) Without prejudice to the provisions of the Act, where a person fails to deliver or cause to be delivered a statement within the time prescribed in sub-section (3) of section 200 or the proviso to subsection (3) of section 206C, he shall be liable to pay, by way of fee, a sum of two hundred rupees for .....

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section 200 or the proviso to sub-section (3) of section 206C which is to be delivered or caused to be delivered for tax deducted at source or tax collected at source, as the case may be, on or after the 1st day of July, 2012. 6. We may also reproduce the Section 200A which was inserted by the Finance Act 2009 with effect from 1st April 2010. This statutory provision, as it stood at the relevant point of time, was as follows: 200A: Processing of statements of tax deducted at source (1) Where a .....

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any, shall be computed on the basis of the sums deductible as computed in the statement; (c) the sum payable by, or the amount of refund due to, the deductor shall be determined after adjustment of amount computed under clause (b) against any amount paid under section 200 and section 201, and any amount paid otherwise by way of tax or interest; (d) an intimation shall be prepared or generated and sent to the deductor specifying the sum determined to be payable by, or the amount of refund due to, .....

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e 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 expeditiously determine the tax payable by, or the refund due to, the deductor as req .....

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or the amount of refund due to, the deductor shall be determined after adjustment of the amount computed under clause (b) and clause (c) against any amount paid under section 200 or section 201 or section 234E and any amount paid otherwise by way of tax or interest or fee; (e) an intimation shall be prepared or generated and sent to the deductor specifying the sum determined to be payable by, or the amount of refund due to, him under clause (d); and (f) the amount of refund due to the deductor .....

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ny words in the impugned intimation itself, and, as the law stood, prior to 1st June 2015, there was no enabling provision therein for raising a demand in respect of levy of fees under section 234E. While examining the correctness of the intimation under section 200A, we have to be guided by the limited mandate of Section 200A, which, at the relevant point of time, permitted computation of amount recoverable from, or payable to, the tax deductor after making the following adjustments: (a). after .....

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