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TMI Blog2017 (3) TMI 1869X X X X Extracts X X X X X X X X Extracts X X X X ..... s and circumstances of the Appellant's case, the learned Commissioner of Income-tax (Appeals) has grossly erred in confirming levy of fee u/s. 234E of I.T. Act Rs. 25,000 /- 3. The relevant facts as culled out from the materials on record are as under:- In this case appellant has challenged levy of fee u/s. 234E in order u/s.200A of the Income Tax Act. In this case appellant has filed TDS statement u/s. 200(3) beyond the prescribed due date. 4. After following the return same was processed by the TDS CPC and late filing fee u/s. 234E to the tune of Rs. 25,000/-. 5. Against the said order assessee preferred first statutory appeal before the learned CIT(A), who dismissed the appeals of the assessee. 6. Learned AR cited an order of this B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... School Vs Union of India [WP (C) 31498/2013(J)], Hon'ble Karanataka High Court in the case of Adithya Bizor P Solutions Vs Union of India [WP No. 6918-6938/2014(T-IT), Hon'ble Rajasthan High Court in the case of Om Prakash Dhoot Vs Union of India [WP No. 1981 of 2014] and of Hon'ble Bombay High Court in the case of Rashmikant Kundalia Vs Union of India [WP No. 771 of 2014], granting stay on the demands raised in respect of fees under section 234E. The full text of these decisions were not produced before us. However, as admittedly there are no orders from the Hon'ble Courts above retraining us from our adjudication on merits in respect of the issues in this appeal, and as, in our humble understanding, this appeal requires adjudi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 09 with effect from 1st April 2010. This statutory provision, as it stood at the relevant point of time, was as follows: 200A: Processing of statements of tax deducted at source (1) Where a statement of tax deduction at source, or a correction statement, has been made by a person deducting any sum (hereafter referred to in this section as deductor) under section 200, such statement shall be processed in the following manner, namely:- (a) the sums deductible under this Chapter shall be computed after making the following adjustments, namely:- (i) any arithmetical error in the statement; or (ii) an incorrect claim, apparent from any information in the statement; (b) the interest, if any, shall be computed on the basis of the sums deducti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2015, and with effect from 1st June 2015, there is an amendment in Section 200A and this amendment, as stated in the Finance Act 2015, is as follows: In section 200A of the Income-tax Act, in sub-section (1), for clauses (c) to (e), the following clauses shall be substituted with effect from the 1st day of June, 2015, namely:- (a) the fee, if any, shall be computed in accordance with the provisions of section 234E; (b) the sum payable by, or the amount of refund due to, the deductor shall be determined after adjustment 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; (c) an intimation shall be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . No other adjustments in the amount refundable to, or recoverable from, the tax deductor, were permissible in accordance with the law as it existed at that point of time. 10. In view of the above discussions, in our considered view, the adjustment in respect of levy of fees under section 234E was indeed beyond the scope of permissible adjustments contemplated under section 200A. This intimation is 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 i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at date. 12. In view of the above discussions and bearing in mind entirety of the case, I hereby delete the levy of late filing fees under section 234E of the Act by way of impugned intimation issued. The assessee gets the relief accordingly. 13. In the result, appeal is allowed. Order pronounced in the open Court on this 3rd day of September, 2015." 14. We do not find any disparity on the facts, therefore, respectfully following the above, we allow the appeals of the assessee and delete the demand raised under section 234E of the Income Tax Act. 15. In the result, appeals of the assessee are allowed." 16. Since there is no change into the facts and circumstances in the present case, therefore respectfully following the aforesaid decis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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