TMI Blog2017 (5) TMI 920X X X X Extracts X X X X X X X X Extracts X X X X ..... en taken for consideration conjointly. For the sake of brevity and convenience, the grounds and facts of appeal no. 420/(Asr)2015 have been taken under consideration. 2. The assessee has raised the following grounds of appeal. 1. That the Learned Commissioner of Income Tax (Appeals), Bathinda, has grossly erred in law and on the facts in confirming the order of the Assessing Officer thereby Charging late filing fees at ₹ 23,800/- u/s 234E of the IT Act, 1961. The worthy CIT(A) has further grossly erred in rejecting the explanation of the assessee without appreciating the facts of the case and without assigning any reason. 2. That the authorities below did not appreciate that intimation u/s 200A of the IT Act, 1961, is not legal and is nonest in the eyes of law 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 u/s 234E. The Ld. CIT(A) did not appreciate that on the basis of provisions of section 234E, such a levy could not be effected in the course of intimation u/s 200A prior to 01/06/2015. As such, the order itself passed by the Assessing Officer is illegal, invalid, void abinitio an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dering the facts and circumstances of the instant case, we do not find any sufficient cause because the assessee has failed to substantiate their claim or condonation of delay. It is universal law that latches cannot be allowed to sub-serve the defaulter, however, considering the peculiar facts and circumstances of the case as it appears to be sound on merit, therefore, in the interest of justice and to sub-serve the principle of natural justice, we are inclined condone the delay of appeals. 7. Now let us proceed with the merits of the case from the application filed by the Ld. Counsel, it engaged that the assessee is relied upon the order of Co-ordination Bench of ITAT, Amritsar passed in Sibia Health Care Private Ltd. In ITA No. 90/(Asr) 2015, which has been further followed by Amritsar Bench in various case. 8. On the other hand, the Ld. DR heavily relied upon the order passed by the authorities below. 9. We have gone through with the facts and circumstances and also rival submissions of the parties, we feel it appropriate to reproduce the operative part of the order passed by the Co-ordination Bench in the aforesaid case of Sibia Health Care Private Ltd.(supra). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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 from any information in the statement; (b) the interest, if 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 unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ranted 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 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 computation of amount I.T.A. No.90 /Asr/2015 Assessment year 2013-14 Page 6 of 7 recoverable from, or payable to, the tax deductor after making the following adjustments: (a). after making adjustment on account of arithmetical errors and incorrect claims apparent from any information in he statement - Section 200A(1)(a) (b). after making adjustment for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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