TMI Blog2020 (6) TMI 565X X X X Extracts X X X X X X X X Extracts X X X X ..... ed U/s 234E of the Act is mandatory and consequential, therefore, the same cannot be deleted on the ground of reasonable cause as explained by the assessee. It is pertinent to mention that though the intimation issued U/s 200A of the Act is an appealable order, however, the said order can be challenged only on the ground that the adjustment made by the A.O. or intimation issued U/s 200A of the Act is not in accordance with the provisions of Section 234E or Section 200A of the Act. Only if the A.O. has failed to comply with the mandatory provisions of these Sections while making the adjustment and issuing the intimation, the same can be challenged in the appeal. In absence of any such allegation that the A.O. has violated any of the provisions of Section 234E or Section 200A of the Act, the adjustment made by the A.O. on account of late filing fee U/s 234E of the Act cannot be deleted. - Decided against assessee. - ITA Nos. 891, 892, 893, 894, 895 & 896/JP/2019 - - - Dated:- 19-6-2020 - Shri Vijay Pal Rao, JM And Shri Vikram Singh Yadav, AM For the Assessee : Shri Yogesh Sharma (CA) For the Revenue : Ms. Chanchal Meena (Addl.CIT) ORDER PER: BENCH These ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he public. We have 37 panchayat in our jurisdiction. We also monitor more than 50 projects by checking, consideration on implementation, check progress report, meeting and coordination with the panchayat, monitor the payment of projects etc. with our limited staff. 3. That the Ld. Commissioner of Income Tax (Appeals) has failed to appreciate that the basic concept behind TDS is, to deposit the Tax on the income of deductee as he earns the income. Therefore deductor/recipient has deposited the tax timely. No such offence has been committed by the assessee that he deducted the TDS and not deposited the Tax and utilizing the money for his purpose. Therefore, no Late fees can be imposed on the assessee. 4. That the Ld. Commissioner of Income Tax (Appeals) has failed to appreciate that as the Appellant was not in such condition to pay interest or penalty as late fee because that we have Rajasthan State Government Department in the name and style of Block Development office, Chaksu to reform, improve and development of the villages and farmers at panchayat level with the various government projects and for implementation of government project such as NAREGA, SWACHH BHARAT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erly statement cannot be recovered by way of processing under section 200A. Therefore demand notice cannot be issued under this section, but if issued, then it is illegal, hence liable to be cancelled. 8. That the Ld. Commissioner of Income Tax (Appeals) has failed to appreciate that the recovery can be made of any amount which is legally payable, if the amount has not become legally payable, then how the recovery can be made for late fee. 9. That the Appellant prays that the penalty of ₹ 22,200 made in respect of section 234E be deleted. 10. That the appellant prays for leave to add, alter, and amend the aforesaid grounds of appeal at or before the time of hearing of appeal. 2. In all these appeals, common issues are involved, therefore, for the sake of convenience and brevity, a common order is being passed. The hearing of these appeals was concluded through video conference in view of the prevailing situation of Covid-19 Pandemic. The assessee is an officer/authority of Government of Rajasthan, responsible for block and panchayat level development programs of the State as well as Central Government schemes/projects such as NAREGA, Swachh Bharat Missi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , it was almost impossible to spare time for submitting quarterly TDS statement/TDS returns as it requires professional help and consultation. Thus, due to paucity of the staff and technical knowledge, there was delay in submitting quarterly TDS statements. The ld AR has pointed out that the second quarter of F.Y. 2015-16, TDS statement was to be submitted on or before due date of 31/10/2015. However, the assessee filed statements on 19/02/2016. Thus, the ld AR has contended that the assessee was having reasonable cause for not submitting the quarterly TDS statement within prescribed period of limitation and therefore, the levy of late fee U/s 234E of the Act by the A.O. is not justified and the same may be deleted. He has explained the compelling circumstances under which the office of the assessee is functioning and not finding any time for submitting the statements as required U/s 200(3) of the Act. The ld AR has submitted that though subsequently the assessee has taken the help of the professional experts and started filing TDS statements in time, therefore, this default in submitting TDS statements is neither willful nor deliberate but due to unavoidable circumstances as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessee has raised objection against the validity of the order passed by the A.O. whereby the intimation dated 05/4/2018 were issued after making adjustment on account of late fee U/s 234E of the Act. Chapter XVII of the Act cast obligation on persons responsible for paying certain amounts to deduct TDS as well as TCS at source. The dispute before us in these six appeals of the assessee is regarding the obligation of TDS and submission of quarterly TDS statements as required U/s 200(3) of the Act, which reads as under: Section 200- Duty of person deducting tax. [(3) Any person deducting any sum on or after the 1st day of April, 2005 in accordance with the foregoing provisions of this Chapter or, as the case may be, any person being an employer referred to in sub-section (1A) of section 192 shall, after paying the tax deducted to the credit of the Central Government within the prescribed time, 24[prepare such statements for such period as may be prescribed] and deliver or cause to be delivered to the prescribed income-tax authority 25 or the person authorised by such authority such statement in such form26 and verified in such manner and setting forth such particul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rate of deduction of tax at source, where such rate is not in accordance with the provisions of this Act. (2) For the purposes of processing of statements under sub-section (1), the Board may make a scheme14 for centralised processing of statements of tax deducted at source to expeditiously determine the tax payable by, or the refund due to, the deductor as required under the said sub-section.] Section 200A(1) of the Act envisages the method and various adjustments which are required to be made by the A.O. while processing the statement of TDS and issuing intimation. Clause (c) of sub section (1) of Section 200A of the Act provides for adjustment on account of fee if any to be computed in accordance with the provisions of Section 234E of the Act. Therefore, in case, there is a default or delay in submitting the TDS statements, a late fee is levied as contemplated U/s 234E of the Act and the A.O. while processing the statements of TDS shall make the adjustment on this account. Thus, so far as the nature of levy U/s 234E of the Act is concerned, it is mandatory in nature and the A.O. has no discretion to take its own decision but he has to make the adjustment on account of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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