TMI Blog2018 (9) TMI 1169X X X X Extracts X X X X X X X X Extracts X X X X ..... section 234E of the Act. - Decided in favour of assessee. - ITA Nos. 832 And 833/Ahd/2018 - - - Dated:- 17-9-2018 - Pramod Kumar, AM And Ms. Madhumita Roy, JM For The Appellant : SK Sadhwani For The Respondent : Lalit P Jain ORDER Per Ms . Madhumita Roy, JM: 1. These two appeals filed by the assessee-appellant are directed against separate order of even dated 26. 02. 2108 passed by the learned CIT(A)-8, Ahmedabad for the assessment years 2015-16 2016-17, upholding the levy of fees ₹ 7375/- (AY 2015-16) and ₹ 11940/- (AY 2016-17) under section 234E of the Income-tax Act on account of delay in furnishing the statement of tax deduction at source. 2. We have heard the rival conte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 on merits . 5 . We may produce, for ready reference, section 234E 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 deli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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 ded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of June, 2015, namely:- ( c) the fee, if any, shall be computed in accordance with the provisions of section 234E; ( d) the sum payable by, 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 in pursuance of the determination under clause (d) shall be granted to the ded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ussions, in our considered view, the adjustment in respect of levy of fees under section 234E was indeed beyond the scope of permissible adjustments contemplated under section 200A . This intimation is an appealable order under section 246A(a), and, therefore, the CIT(A) ought to have examined legality of the adjustment made under this intimation in the light of the scope of the section 200A . Learned CIT(A) has not done so . He has justified the levy 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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