TMI Blog2018 (2) TMI 1766X X X X Extracts X X X X X X X X Extracts X X X X ..... of fee under section 234E is set aside and fee levied u/s 243E in all the appeals are ordered to be deleted. - decided in favour of assessee - ITA No.31/CTK/2017 - - - Dated:- 14-2-2018 - SHRI N. S. SAINI, AM AND SHRI PAVAN KUMAR GADALE, JM For The Assessee : Shri K.K.Bal, AR For The Revenue : Shri D.K. Pradhan, DR ORDER Per Shri N.S.Saini, AM: This is an appeal filed by the assessee against the order of the CIT(A)-3, Bhubaneswar, dated 24.10.2016. 2. The sole issue involved in this appeal is that the CIT(A) erred in confirming the order of AO levying late fee u/s.234E of the Act for delay in filing quarterly statement. 3. Brief facts of the case are that the assessee filed TDS return in Form No.24 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the levy of fee u/s.234 E of the Act in the above stated case, observing as under: We have heard both parties and perused the records. We find that the only issue permeating from all the 5 appeals is regarding imposition of levy of fee for late filing TDS return u/s 234E of the Act, while processing the statements furnished by the assessee u/s 200A of the Act. At the outset itself, it was pointed out by the Ld. Counsel for the assessee that this issue is no longer res integra since the Hon'ble Karnataka High Court in Fatehraj Singhvi v. Union of India (289 CTR 0602) has held that w.e.f. 01.06.2015, the Parliament by way of an amendment to Section 200A of the Act, has empowered the AO to levy fee u/s 234E of the Act while proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessees and deposited in the Government account. However, as per the Department, there was delay in filing the return/statement with the details of the persons from whom the TDS was deducted including the details and the persons concerned and the transactions etc. The Department issued intimation u/s 200A of the Act, calling upon the respective assessees to pay late filing fee u/s 234E of the Act in purported exercise of the power u/s 200A of the Act. The assessee challenged the levy of the fee and also the vires of the statute (Section 234E). The Hon'ble High Court did not make any finding in respect of the vires of the statute and the said issue was left open. However, the Hon'ble High Court held that prior to 01.06.2015, the AO w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid as without any authority under law. Hence, the same can be said as illegal and invalid. 24. If the facts of the present cases are examined in light of the aforesaid observation and discussion, it appears that in all matters, the intimation given in purported exercise of power under Section 200A are in respect of fees under Section 234E for the period prior to 1.6.2015. As such, it is on account of the intimation given making demand of the fees in purported exercise of power under Section 200A, the same has necessitated the appellant-original petitioner to challenge the validity of Section 234E of the Act. In view of the reasons recorded by us hereinabove, when the amendment made under Section 200A of the Act which has come into ef ..... X X X X Extracts X X X X X X X X Extracts X X X X
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