TMI Blog2020 (9) TMI 529X X X X Extracts X X X X X X X X Extracts X X X X ..... id exception is applicable in the instant case - In the instant case, the assessee has filed his TDS statement on TRACES which is an IT platform managed and run by the Tax Department - As per the Revenue s own submission, DCIT, CPC-TDS Ghaziabad holds concurrent jurisdiction with the Assessing Officer(TDS)-3, Jaipur over the case, as per the provisions of Section 120 read with 124 of the Income Tax Act, 1961. Even though CPC has its separate and identifiable functions relating to TDS returns, the officers hold concurrent jurisdiction over such TDS matters with that of the AO, there cannot be any dispute that both administratively and functionally, the CPC of the Department is part of Income Tax Department and is therefore clearly not an external law enforcement agency qua Income Tax department and that too, as specified in the aforesaid exception. Therefore, in the instant case, where the TDS statement has been processed by the CPC and while processing the same, fee u/s 234E has been levied having tax effect less than the prescribed limit, it will continue to be governed by low tax effect circular issued by the CBDT which is binding on the Revenue. Present appeal filed by the D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the course of hearing, the ld DR submitted that the assessee deductor has filed on TRACES online the TDS statement in Form-24Q for 3rd quarter of F.Y 2016-17 on 11.03.2017 during the F.Y. 2016-17. The TDS statement was processed with defaults on 17.03.2017 in compliance of provisions of Section 200A and accordingly, intimation of processing with default and levy of fee of ₹ 7,800/- u/s 200A(1)(c) of the Income Tax Act, 1961 was communicated to the assessee as per the law. 5. It was further submitted that being aggrieved by the levy of fee u/s 200A(1)(c), for the late filing of TDS statement for the 3rd quarter of F.Y. 2016-17, the assessee deductor filed appeal before the ld. CIT (A)-3, Jaipur who vide order dated 30.01.2019 in Appeal No. 70/JPR/17-18 has allowed the appeal and deleted the fee of ₹ 7,800/- levied by the DCIT, CPC-TDS, Ghaziabad holding concurrent jurisdiction with the Assessing Officer (TDS)-3, Jaipur over the case, as per the provisions of Section 120 read with 124 of the Income Tax Act, 1961. 6. It was submitted by the ld DR that the order of the ld. CIT (A)-3, Jaipur is not acceptable to the Department in view of the facts of the case and prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tted that the ld. CIT(A) has erred in deleting the fee levied for late filing of e-TDS statement (quarter-3) of F.Y 2016-17 in contravention to the provisions of Section 200A(1)(c) which is mandatory in nature and constitutionally valid. As per the provisions of the Act, the assessee deductor was required to pay fee for late filing of eTDS statement computed in terms of Section 234E alongwith filing of eTDS statement and the fee levied for the failure of the assessee deductor on this account as communicated on processing of the eTDS statement is constitutionally valid. This view is further supported by the judgement in the case of (i) M/s Dundlod Shikshan Sansthan others v/s UOI others (D.B. Civil Writ Petition No. 8672/2014) vide order dated 28.07.2015 of the Hon'ble Rajasthan High Court, Jaipur and in the case of Rashmikant Kundalia and another v/s UOI (Writ Petition No. 771/2014) vide order dated 06.02.2015 of Hon'ble Bombay High Court and further the Hon'ble Supreme Court of India held the application of fee u/s 234E as constitutional valid and accordingly Writ petition were dismissed. 9. It was submitted by the ld DR that as per law and in view of the above ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fect entailed is less than the monetary limits specified in para 3 above or there is no tax effect. (a) Where the Constitutional validity of the provisions of an Act or Rule is under challenge, or (b) Where Board s order, Notification, Instruction or Circular has been held to be illegal or ultra vires, or (c) Where Revenue Audit objection in case has been accepted by Department, or (d) Where addition relates to undisclosed foreign income/undisclosed foreign assets (including financial assets)/undisclosed foreign bank account. (e) Where addition is based on information received from external sources in the nature of law enforcement agencies such as CBI/ED/DRI/SFIO/Directorate General of GST Intelligence (DGGI). (f) Cases where prosecution has been filed by the Department and is pending in the Court. 13. Para 10(a) of the aforesaid Circular as amended provides that where the Constitutional validity of the provisions of an Act or Rule is under challenge, the adverse judgments relating to the said matter should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified in para 3 above or there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... centrally by Central Processing Centre which is again manned by the personnel of the Tax department and finally, intimation u/s 200A(1)(C) of the said processing has been issued duly signed by DCIT, CPCTDS Ghaziabad. As per the Revenue s own submission, DCIT, CPC-TDS Ghaziabad holds concurrent jurisdiction with the Assessing Officer(TDS)-3, Jaipur over the case, as per the provisions of Section 120 read with 124 of the Income Tax Act, 1961. Therefore, even though CPC has its separate and identifiable functions relating to TDS returns, the officers hold concurrent jurisdiction over such TDS matters with that of the Assessing officer, there cannot be any dispute that both administratively and functionally, the CPC of the Department is part of Income Tax Department and is therefore clearly not an external law enforcement agency qua Income Tax department and that too, as specified in the aforesaid exception. Therefore, in the instant case, where the TDS statement has been processed by the CPC and while processing the same, fee u/s 234E has been levied having tax effect less than the prescribed limit, it will continue to be governed by low tax effect circular issued by the CBDT which i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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