TMI Blog2023 (4) TMI 736X X X X Extracts X X X X X X X X Extracts X X X X ..... bling provision in the Act u/s 200A for raising demand in respect of levy of fee u/s 234E. As such, as per the assessee, in respect of TDS statement filed for a period up to 29.06.2014, no late fee could be levied in the intimation issued u/s 200A - The details of the TDS deduction and statement filed by the assessee are available on record which were not disputed by the Revenue. As per Shri Fatehraj Singhvi and Ors [ 2016 (9) TMI 964 - KARNATAKA HIGH COURT ] and our own finding in the case of Sudershan Goyal [ 2018 (5) TMI 1626 - ITAT AGRA ], we accept the grievance of the assessees as genuine. Accordingly, the orders of the CIT(A) are reversed, and the fee so levied u/s 234E of the Act is cancelled. Appeals of assessee are allowed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jurisdictional Tribunal decision in the case of Sr K.V. Subramanyam ITA No: 502/HYD/2022 which is binding on the ITO (TDS), 2(1), Hyderabad and CIT(A), NFAC. 6. The Ld CIT(A), NFAC, failed to appreciate that the fee levied U/s 234E is not for rendering any service to the assesse and in Substance it is Penal in Nature. 7. The Ld CIT(A), NFAC, Failed to appreciate that section 200 A (1) (c) Cannot be invoked retrospectively i.e F.Y 2013-14 as Section 200 A(1)(c) was inserted w.e.f 01.06.2015. 8. The CPC while processing the TDS returns did not charge fee U/s 234E and Ld A.O without following the provisions of Section 200A(1) had levied the Late fee U/s 234E. 2. The brief facts of the case are that assessee is a company eng ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n ble Gujarat High Court in the case of Rajesh Kaurani vs. Union of India. We find that late filing fee u/s 234E of the Act has not rightly been charged in the intimation issued u/s 200A/206CB of the Act while processing the TDS returns/statements as the enabling clause (c) having been inserted in the section w.e.f. 01.06.2015. Earlier, there was no enabling provision in the Act u/s 200A for raising demand in respect of levy of fee u/s 234E. As such, as per the assessee, in respect of TDS statement filed for a period up to 29.06.2014, no late fee could be levied in the intimation issued u/s 200A of the Act. The details of the TDS deduction and statement filed by the assessee are available on record which were not disputed by the Revenue. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e passing Rajesh Kaurani (supra). However, while observing so, the ld. CIT(A) has failed to take into consideration the settled law that where there is a cleavage of opinion between different High Courts on an issue, the one in favour of the assessee needs to be followed. It has so been held by the Hon ble Supreme Court in CIT vs. Vegetable Products Ltd. , 88 ITR 192 (SC). It is also not a case where the decision against the assessee has been rendered by the Jurisdictional High Court qua the assessee. 5. In Shri Fatehraj Singhvi and Others (supra) it has been held, inter alia, as follows: 22. It is hardly required to be stated that, as per the well established principles of interpretation of statute, unless it is expressly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the grievance of the assessees as genuine. Accordingly, the orders of the CIT(A) are reversed, and the fee so levied under section 234E of the Act is cancelled. 7. In the result, all the appeals are allowed. 6. In view of the above discussions and in view of the support drawn from the decision of Co-ordinate Bench of the Tribunal in the case of Garrison Engineer (E/M) Vs. JCIT (TDS) (supra), we accept the grievance of the assessee as genuine. As such, the order of ld.CIT(A) is annulled and thus, the appeal is allowed in favour of the assessee by cancelling the fee so levied under section 234E of the Act. 7. In the result, the appeal of the assessee is allowed. Order pronounced in the Open Court on 23rd March, 2023. - - Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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