TMI Blog2018 (10) TMI 355X X X X Extracts X X X X X X X X Extracts X X X X ..... RDER PER AMIT SHUKLA, J.M. The aforesaid appeal has been filed by the assessee against impugned order dated 1.3.2018, passed by Ld. CIT (Appeals), Faridabad in relation to the order passed u/s 200A read with section 234E for A.Y. 2014-15. In the grounds of appeal, the assessee has raised various grounds to challenge the levy of fee/penalty u/s 234E by the Assessing Officer. The relevant grounds raised by the assessee reads as under:- 1) That having regard to the facts and circumstances of the case, Ld. CIT (A) has erred in law and on facts in confirming the order of Ld. AO levying fee / penalty u/s 234E and holding the assessee as assessee in default u/s 201 and has further erred in charging interest u/s 201 and sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. A.O. in passing the impugned order and that too without giving adequate opportunity of hearing and without observing the principle of natural justice. 9) That the appellant craves the leave to add, alter or amend the grounds of appeal at any stage and all the grounds are without prejudice to each other. 2. The facts in brief are that the assessee alongwith other co-owners of the family, namely, Smt. Shakuntla Gupta Smt. Himani Gupta had purchased a property from eight persons for sums aggregating to ₹ 3,35,00,000/-; and each seller was paid sum of ₹ 41,87,500/-. Later on department issued intim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid the tax from her own pocket even though the assessee s contention has been that payment has been made separately to each of the vendors which was below the threshold limit of ₹ 50 lacs, therefore, she was not required to deduct TDS u/s 194IA. From No. 26QB and challan of tax deposited were generated on 5.4.2014 from the electronic system which is evident from the orders passed, which clearly mentions the date of filing of challan cum statement as 5.4.2014 . Thus, levy of fee u/s 234E is not applicable at all, because there is no delay in filing of the said statement as the same was filed alongwith the tax deposited. He submitted that, from the plain reading of section 234E, section 200(3) r.w. Rule-31A (4A), fee u/s 234E is levi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment would not be uploaded by the assessees and such inaction on the part of the assessee would deprive the department to give credit to the person in whose account tax was deducted. In the instant case, tax was paid on 5.4.2014 and statement was filed on 5.4.2014, there could not have been any inconvenience to the department in giving credit to the person concerned. Thus, object behind the levy of fee u/s 234E stood achieved in the present case and for this reason also, there was no reason fee u/s 234E should be levied. 5. On the other hand, Ld. DR submitted that once assessee has not deducted the TDS at the time of purchase, then there was a clear cut default and assessee was also liable for levy of fee u/s 234E read with section 200A. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 200A provides that where the statement of tax deduction at source has been made by the person deducting any sum u/s 200, then such statement shall be processed in the manner given therein. Clause (c) of section 200A has been substituted by the Finance Act 2015 w.e.f. 1.6.2015 which reads as under:- ( c) the fee, if any, shall be computed in accordance with the provisions of section 234E; 6.1 Fee for default u/s 234E provides that, when a person fails to deliver or cause to be delivered a statement within the time prescribed u/s 200(3), then that person shall be liable to pay fee in the manner provided therein. Thus, fee u/s 234E is leviable if the statement is not filed as prescribed u/s 200(3) which in turn provides that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 200A was that, the provision of Section 200A(1)(c), (d) and (f) have come into force only with effect from 1.6.2015 and hence, there was no authority or competence or jurisdiction on the part of the concerned Officer or the Department to compute and determine the fee under Section 234E in respect of the assessment year of the earlier period and the return filed for the said respective assessment years namely all assessment years and the returns prior to 1.6.2015. It was submitted that, when no express authority was conferred by the statute under Section 200A prior to 1.6.2015 for computation of any fee under Section 234E nor the determination thereof, the demand or the intimation for the previous period or previous year prior to 1.6.201 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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