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TMI Blog2019 (12) TMI 824X X X X Extracts X X X X X X X X Extracts X X X X ..... qua the assessee after considering material on record and after hearing learned Departmental Representative who supported the stand of Ld. CIT(A) in the impugned order. 1.3 Facts on record would reveal that that in an intimation u/s 200A of the Income Tax Act, 1961 received from AO-TDS CPC, Vaishali, Ghaziabad for Q-4 for AY 2013-14, the assessee was saddled with late filing fees u/s 234E for Rs. 33,349/- and interest of Rs. 1,485/- on account of late payment. The said fee u/s 234E was levied on account of late filing of quarterly electronic TDS return, as provided u/s 200(3) of the Act read with Rule 31A of the Income Tax Rules. 1.4 The assessee challenged the levy of fees u/s 234E as well as levy of interest before Ld. CIT(A) vide impugned order dated 14/06/2018, inter-alia, by relying upon the decision of Hon'ble Karnataka High Court rendered in Fatehraj Singhvi V/s Union of India (73 Taxmann.com 252 26/08/2016). However, Ld. CIT(A) rejected the same since the constitutional validity of Sec. 234E was already upheld by Hon'ble Bombay High Court in its decision titled as Rashmikant Kundalia V/s Union of India (373 ITR 268). Aggrieved, the assessee is under appeal before us. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... althcare Pvt. Ltd. is against order of Assessing Officer passed under section 154 of the Act rejecting rectification application moved by assessee against intimation issued levying late filing fees charged under section 234E of the Act. The case of assessee before us is that the issue is squarely covered by various orders of Tribunal, wherein the issue has been decided in respect of levy of late filing fees under section 234E of the Act, in the absence of empowerment by the Act upon Assessing Officer to levy such fees while issuing intimation under section 200A of the Act. The Tribunal vide order dated 21.09.2016 with lead order in Maharashtra Cricket Association v. Dy. CIT [2016] 74 taxmann.com 6 (Pune - Trib.) relating to assessment years 2013-14 and 2014-15 for the respective quarters deliberated upon the issue and held as under:- "34. Accordingly, we hold that the amendment to section 200A(1) of the Act is procedural in nature and in view thereof, the Assessing Officer while processing the TDS statements / returns in the present set of appeals for the period prior to 01.06.2015, was not empowered to charge fees under section 234E of the Act. Hence, the intimation issued by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le. All such aspects will be required to be considered before one considers regulatory mechanism or provision for regulating the mode and the manner of recovery and its enforceability as retroactive. If at the time when the fee was provided under Section 234E, the Parliament also provided for its utility for giving privilege under Section 271H(3) that too by expressly put bar for penalty under Section 272A by insertion of proviso to Section 272A(2), it can be said that a particular set up for imposition and the payment of fee under Section 234E was provided but, it did not provide for making of demand of such fee under Section 200A payable under Section 234E. Hence, considering the aforesaid peculiar facts and circumstances, we are unable to accept the contention of the learned counsel for respondent-Revenue that insertion of clause (c) to (f) under Section 200A(1) should be treated as retroactive in character and not prospective. 22. It is hardly required to be stated that, as per the well established principles of interpretation of statute, unless it is expressly provided or impliedly demonstrated, any provision of statute is to be read as having prospective effect and not ret ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r section 234E of the Act for the period of tax deducted prior to 1st day of June, 2015. The same cannot be charged by issue of notices after 1st day of June, 2015 even where the returns were filed belatedly by the deductor after 1st June, 2015, where it clearly related to the period prior to 01.06.2015. 16. We hold that the issue raised in the present bunch of appeals is identical to the issue raised before the Tribunal in different bunches of appeals and since the amendment to section 200A of the Act was prospective in nature, the Assessing Officer while processing TDS returns / statements for the period prior to 01.06.2015 was not empowered to charge late filing fees under section 234E of the Act, even in cases where such TDS returns were filed belatedly after June, 2015 and even in cases where the Assessing Officer processed the said TDS returns after June, 2015. Accordingly, we hold that intimation issued by Assessing Officer under section 200A of the Act in all the appeals does not stand and the demand raised by charging late filing fees under section 234E of the Act is not valid and the same is deleted. 17. Before parting, we may also refer to the order of CIT(A) in re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der section 154 of the Act and not from the date of issue of intimation. Thus, there is no merit in the order of CIT(A) in dismissing the appeals of assessee on this issue. 19. We find similar issue has been decided by us in the case of Medical Superintendent Rural Hospital (supra) and vide para 15, order dated 21.12.2017 it was held as under:- "15. Further, before parting, we may also refer to the order of the CIT(A) in these two appeals. The CIT(A) had dismissed the appeals of the assessee being delayed for a period of two and half years. The CIT(A) had taken the date of intimation under section 200A(3) dated 07-08-2014 and computed the delay in filing the appeal late before him. However, the assessee had filed the appeal before the CIT(A) against the order passed under section 154 of the Act. The said application for rectification under section 154 was filed on 08-06-2017/09-03-2017 in the respective years. The said application was decided by the Assessing Officer on 09- 06-2017. The assessee filed an appeal against the dismissal of the rectification application filed under section 154 of the Act. The said fact is clear from the perusal of Form No.35 with special reference ..... X X X X Extracts X X X X X X X X Extracts X X X X
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