TMI Blog2016 (3) TMI 917X X X X Extracts X X X X X X X X Extracts X X X X ..... rth J. Contractor, AR For The Revenue : Shri Kamlesh Makwana, DR ORDER The assessee is in appeal before the Tribunal against the order of the ld.CIT(A)-4, Ahmedabad dated 02.6.2015 passed for the assessment year 2014-15. 2. The sole grievance of the assessee is that the ld.CIT(A) is erred in confirming the action of DCIT for levying of late fees under section 234E of the Income Tax Act, 1961 to the tune of ₹ 11,570/- for late filing of statement for financial year 2013-14. 3. The ld.counsel for the assessee submitted that the demand of late fee cannot be raised by way of processing of TDS statement, because provision of section 200A of the Act does not cover default in payment of late fees, except any arithmetical ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... power to charge fee under section 234E. This order of the ITAT, Amristar Bench has been followed by the ITAT, Ahmedabad Bench in number of cases, some of which are cited supra. The order of the ITAT, Ahmedabad Bench in the case of Lions Club of North Surat Charitable Trust (supra) dated 3.9.2015 on the similar issue has held as under: 4. I 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 - 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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 shall apply to a statement referred to in sub-section (3) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ined 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 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 s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rse 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 intimation under section 200A of the Act, as stated in so many 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 compu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y could be effected. As intimation under section 200A, raising a demand or directing a refund to the tax deductor, can only be passed within one year from the end of the financial year within which the related TDS statement is filed, and as the related TDS statement was filed on 19th February 2014, such a levy could only have been made at best within 31st March 2015. That time has already elapsed and the defect is thus not curable even at this stage. In view of these discussions, as also bearing in mind entirety of the case, the impugned levy of fees under section 234 E is unsustainable in law. We, therefore, uphold the grievance of the assessee and delete the impugned levy of fee under section 234E of the Act. The assessee gets the relief ..... X X X X Extracts X X X X X X X X Extracts X X X X
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