TMI Blog2015 (6) TMI 1191X X X X Extracts X X X X X X X X Extracts X X X X ..... od Kumar AM And A.D. Jain JM For the Appellant : Munish Arora For the Respondent : Tarsem Lal ORDER Per Bench: 1. By way of these appeals, the assessee has called into question correctness of the orders dated 30th December, 2014 passed by the learned CIT(A) upholding levy of fees, under section 234 E of the Income Tax Act, 1961, on the assessee and by way of intimations dated 23rd September, 2014 issued under section 200A in respect of processing of TDS statements for the second and third quarter of the financial year 2013-14 2. During the course of hearing, learned Representatives fairly accept that the issue involved in these appeals is the same as w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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 dedu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 deductor specifying the sum determined 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 intimatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 this levy has been pointed out to us and it is thus an admitted position that in the absence of the enabling provision under section 200A, no such levy could be effected. As intimation under section 200A, raising a demand or dir ..... X X X X Extracts X X X X X X X X Extracts X X X X
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