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TMI Blog2024 (7) TMI 656X X X X Extracts X X X X X X X X Extracts X X X X ..... to the appeal in ITA No.312/PUN/2024 are stated herein. ITA No. 312PUN/2024 - A.Y. 2014-15 : 4. Briefly, the facts of the case are that the Assistant Commissioner of Income Tax, CPC- TDS, Ghaziabad issued an intimation u/s 200A r.w.s. 154 of the Income Tax Act, 1961 ('the Act') for the financial year 2013-14 levying a late fee under the provisions of section 234E of Rs. 1,61,900/- (Rs. 23,100/- for Q1 + Rs. 24,900/- for Q2 + Rs. 24,900/- for Q3 + Rs. 89,000 for Q4) by stating that the appellant had failed to file the quarterly statement of TDS of first, second, third and fourth quarters for financial year 2013-14 in Form No.24Q. Accordingly, the ACIT, CPC- TDS, Ghaziabad had levied penalty of late fee of Rs. 1,61,900/- (Rs. 23,100/- for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m 252 held that the provisions of section 234E of the Act are substantive in nature and the mechanism for computing the late fee was provided by the Parliament only w.e.f. 01.06.2015. Therefore, late fees u/s 234E of the Act can be levied only prospectively w.e.f. 01.06.2015. The relevant observation of the Hon'ble Karnataka High Court in the case of Fatheraj Singhvi (supra) are extracted hereunder :- "19. Hence, it can be said that, the mechanism provided for enforceability of Section 200(3) or 206C (3) for filing of the statement by making it penal under Section 272A (2) (k) is done away in view of the insertion of Section 271H providing for penal provision for such failure to submit return. When the Parliament has simultaneously brough ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay have a retroactive character but, whether such provision provides for a mere regulatory mechanism or confers substantive power upon the authority would also be a aspect which may be required to be considered before such provisions is held to be retroactive in nature. Further, when any provision is inserted for liability to pay any tax or the fee by way of compensatory in nature or fee independently simultaneously mode and the manner of its enforceability is also required to be considered and examined. Not only that, but, if the mode and the manner is not expressly prescribed, the provisions may also be vulnerable. All such aspects will be required to be considered before one considers regulatory mechanism or provision for regulating the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... period of the respective assessment year prior to 1.6.2015. However, we make it clear that, if any deductor has already paid the fee after intimation received under Section 200A, the aforesaid view will not permit the deductor to reopen the said question unless he has made payment under protest. 23. In view of the aforesaid observation and discussion, since the impugned intimation given by the respondent-Department against all the appellants under Section 200A are so far as they are for the period prior to 1.6.2015 can be said as without any authority under law. Hence, the same can be said as illegal and invalid. 24. If the facts of the present cases are examined in light of the aforesaid observation and discussion, it appears that in a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity of Section 234E would be rendered as an academic exercise because there would not be any cause on the part of the petitioners to continue to maintain the challenge to constitutional validity under Section 234E of the Act. At this stage, we may also record that the learned counsels appearing for the appellant had also declared that if the impugned notices under Section 200A are set aside, so far as it relates to computation and intimation for payment of fee under Section 234E, the appellant-petitioners would not press the challenge to the constitutional validity of Section 234E of the Act. But, they submitted that the question of constitutional validity of Section 234E may be kept open to be considered by the Division Bench and the Judgm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 74 taxmann.com 6 and (iii) Webtrust Co. In (India) Pvt. Ltd. ACIT, CPC (TDS) in ITA Nos.1818 & 1819/PUN/2018 for Assessment Years 2013-14 & 2014-15, order dated 02.11.2021. In the circumstances, we direct the ACIT, CPC- TDS, Ghaziabad to delete the late fee being levied u/s. 234E of the Act. 10. In the result, the appeal filed by the assessee in ITA No.312/PUN/2024 for A.Y. 2014-15 stands allowed. ITA No. 313 to 315/PUN/2024 - A.Y. 2014-15 : 11. Since the facts and issues involved in remaining three appeals of the assessee are identical, therefore, our decision in ITA No.312/PUN/2024 shall apply mutatis mutandis to the remaining three appeals of the assessee in ITA Nos.313 to 315/PUN/2024 for A.Y. 2014- 15 respectively. Accordingly, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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