TMI Blog2020 (6) TMI 700X X X X Extracts X X X X X X X X Extracts X X X X ..... 2019. Aggrieved by the order, the Assessee has filed an appeal under Section 246 of the Act with the CIT (Appeals).Considering the provisions of law and the facts of the case, we found the assessee has challenged the order under Section 154 of the Act, which is permissible under the Law. As decided in case of Fatheraj Singhvi [ 2016 (9) TMI 964 - KARNATAKA HIGH COURT] when the amendment made under Section 200A of the Act which has come into effect on 1.6.2015 is held to be having prospective effect, no computation of fee for the demand or the intimation for the fee under Section 234E could be made for the TDS deducted for the respective assessment year prior to 1.6.2015. Hence, the demand notices under Section 200A by the respondent-aut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 652/2015) has held that there was no power under section 200A to levy any late fee u/s 234E prior to amendment of the law on 1-6-2015. Therefore, the demand of late fee would be automatically cancelled as the law prevailing at that time u/s 200A did not allow such levy while processing the TDS returns. 3. The Learned CIT(A) has erred in considering the interpretation of the order passed by the Hon'ble Bangalore Tribunal in the case of M/S Dr C Fernandes Co-operative Credit Society Ltd, in relation to the judgement of Hon'ble Karnataka High Court in the case of M/S Fatheraj Singhavi (supra). 4. The Learned CIT(A) has not considered the correct legal position which is appealed u/s 154 by stating that the levy of late filling fee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... challenging the levy of late fees under Section 234E of the Act which is not a mistake apparent from record, and also the decision of the Hon'ble Karnataka High Court in Sri Fatehraj Singh Others Vs. UOI (supra) is applicable prospectively and dismissed the appeal of the assessee. Aggrieved by the order of CIT (Appeals), the assessee has filed an appeal with the Tribunal. 4. We heard the learned Departmental Representative and perused the material on record. We found that the TDS Returns for the Q1, Q2 Q3 for the F.Y. 2013-14 relevant to A.Y. 2014-15 were filed by the assessee and after processing the returns, the order under Section 200A of the Act was passed on 19.04.2014. Subsequently, the assessee has filed rectification p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (a) .. (b) (c) an order under section 154 or section 155 having the effect of enhancing the assessment or reducing a refund or an order refusing to allow the claim made by the assessee under either of the said sections; Considering the provisions of law and the facts of the case, we found the assessee has challenged the order under Section 154 of the Act, which is permissible under the Law. On the second issue of applicability of decision of Hon'ble Karnataka High Court in the case of Sri Fatehraj Singh Others Vs. UOI (supra),the provisions of Section 200A(1)(c), (d) and (f) are effective from 1.6.2015 and Hon ble court has held at Para 23 to 28 of the decision which is read as under 23. In view of the aforesaid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section for making computation and demand of fees under Section 234E, the same has necessitated the appellant to challenge the constitutional validity of Section 234E. When the intimation of the demand notices under Section 200A is held to be without authority of law so far as it relates to computation and demand of fee under Section 234E, we find that the question of further scrutiny for testing the constitutional validity of Section 234E would be rendered as an academic exercise beeau3e there would not be any cause on the part of the petitioners to continue to maintain the challenge to constitutional validity under Section 234E of the Act. At this stage, we may also record that the learned counsels appearing for the appellant had also dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is further observed that the question of constitutional validity of Section 234E shall remain open to be considered by the Division Bench and shall not get concluded by the order of the learned Single Judge. 28. The appeals are partly allowed to the aforesaid extent. Considering the ratio of decision of Hon ble jurisdictional High Court and the material on record. We Set-aside the order of CIT(Appeals) and direct the Assessing Officer to delete the levy of late fees under Section 234E of the Act and allow the grounds of appeal of the assessee. 6. Similarly, the assessee has filed appeals in ITA Nos.1964 1965/Bang/2019 for the A.Y. 2015-16(Q1,Q2,Q3 Q4) and A.Y. 2016-17(Q1), where the issues are similar and identical, and the dec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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