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TMI Blog2022 (6) TMI 260X X X X Extracts X X X X X X X X Extracts X X X X ..... is no enabling provision in the law for raising of demand in respect of levy of fees u/s 234E prior to 01/06/2015. The mechanism provisions were brought into operation w.e.f. 1-Jun-2015. Hence as per various judicial pronouncements, the TDS statements which have been filed earlier to 01/06/2015 then no fee is leviable u/s 234E of the Income Tax Act. Therefore Late fee levied u/s 234E and Interest charged u/s 220(2) is illegal and liable to be deleted. (Tax effect of Rs. 68730/-) 2. The order passed by L'nd A.O. is bad on facts since the appellant is suffering consequence of failure of its TDS consultant in complying with TDS related provisions within stipulated time limit. 3. The order passed by L'nd A.O. is bad in law and on f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bling provision for levy of late filing fee u/s 234E of the Act for the impugned assessment year AY 2013-14, there is no scope of levy of late filing fees. The Ld. CIT(Appeals) issued several notices of hearing, but the assessee did not cause appearance before Ld. CIT(Appeals) in appellate proceedings. The Ld. CIT(Appeals) dismissed the appeal by holding that the issue is directly covered against the assessee by the jurisdictional Honourable Gujarat High Court in the case of Rajesh Kourani v. Union of India [2017] 83 taxmann.com 137 (Gujarat), where the Gujarat High Court held that section 234E of the Act is a charging provision creating a charge for levying fee for certain defaults in filing statements, and fee prescribed under section 234 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... providing mechanism for processing a TDS statement and under no circumstances a machinery provision can override or overrule a charging provision. The Hon'ble Gujarat High Court held that even in absence of section 200A of the Act i.e. the machinery provision, with the introduction of section 234E (being the charging provision- inserted w.e.f. 1- 7-2012), it was always open for the Revenue to demand and collect the fee for late filing of the TDS statements u/s 234E of the Act w.e.f. 01-07-2012. The jurisdictional Gujarat High Court observed as below while adjudicating on the issue: 16. We now come to the petitioner's central challenge viz. of non permissibility to levy fee under section 234E of the Act till section 200A of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-section (3) of section 206C. This provision was apparently added for making the compliance of deduction and collection of tax at source, depositing it with Government revenue and filing of the statements more stringent. 18. In this context, we may notice that section 200A which pertains to processing of statements of tax deducted at source provides for the procedure once a statement of deduction of tax at source is filed by the person responsible to do so and authorizes the Assessing Officer to make certain adjustments which are prima-facie or arithmetical in nature. The officer would then send an intimation of a statement to the assessee. Prior to 01.06.2015, this provision did not include any reference to the fee payable under sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r section 234E for late filing of the statements. 20. Even in absence of section 200A of the Act with introduction of section 234E, it was always open for the Revenue to demand and collect the fee for late filing of the statements. Section 200A would merely regulate the manner in which the computation of such fee would be made and demand raised. In other words, we cannot subscribe to the view that without a regulatory provision being found for section 200A for computation of fee, the fee prescribed under section 234E cannot be levied. Any such view would amount to a charging section yielding to the machinery provision. If at all, the recasted clause (c) of sub-section (1) of section 200A would be in nature of clarificatory amendment. Even ..... X X X X Extracts X X X X X X X X Extracts X X X X
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