TMI Blog2023 (3) TMI 1351X X X X Extracts X X X X X X X X Extracts X X X X ..... the remuneration to the public prosecutors have been given directly by the Gujarat State in their bank accounts. CIT(A) while upholding the levy of fee u/s. 200A of the Act did not enquire into the aspect whether the assessee was under a legal obligation to file TDS return in respect of TDS so deducted (and subsequently deposited by the Government of Gujarat to the Central Government) and paid directly to the bank account of public prosecutors. We are hereby restoring the file back to the ld. CIT(A) to analyze under what capacity the assessee is filing TDS returns and whether the assessee in the first instance, is under an obligation, to file statement of tax deducted at source u/s. 200A - Appeals of the assessee are allowed for sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee has been regularly filing TDS returns for the TDS so deducted by the Gujarat Government from time to time. However, TDS statements for a few of the quarters for the assessment years under consideration i.e. assessment years 2014-15, 2015-16 2016-17 have been delayed. Accordingly, the TDS Central Processing Cell has levied late fee of Rs. 1,17,573/- for assessment year 2014-15, Rs. 1,21,799/- for assessment year 2015-16 and Rs. 1,11,670/- for assessment year 2017-18, under section 234E of the Act on the assessee for late filing as TDS Statement. In appeal, the ld. CIT(A) held that from the Scheme introduced by Finance Act, 2012, it can be seen that the levy of fee u/s. 234E is not in the nature of penalty but the same is in the nature ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee submitted before us that it is not in receipt of any advance from the Government of Gujarat, which it then disburses to the public prosecutors. Accordingly, we observe that in the instant case, the remuneration is paid directly by the Government of Gujarat and further the Gujarat Government is also responsible for deduction of tax at source and credit of same to the Central Government, in respect of remuneration/professional fee paid to public prosecutors. Therefore, given the above background, it is not clear to us on what is the role of assessee company in filing of TDS returns, especially when the remuneration is being paid to public prosecutors directly by the Gujarat Government after deducting taxes at source. Section 200 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... given directly by the Gujarat State in their bank accounts. It is also observed that the ld. CIT(A) while upholding the levy of fee u/s. 200A of the Act did not enquire into the aspect whether the assessee was under a legal obligation to file TDS return in respect of TDS so deducted (and subsequently deposited by the Government of Gujarat to the Central Government) and paid directly to the bank account of public prosecutors. In view of the above discussion, we are hereby restoring the file back to the ld. CIT(A) to analyze under what capacity the assessee is filing TDS returns and whether the assessee in the first instance, is under an obligation, to file statement of tax deducted at source u/s. 200A of the Act. In the result, the matter is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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