Shree Sakthi Vinayagar Weaves Pvt. Ltd., Erode V. DCIT, Ghaziabad

ITA 1042/CHNY/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 95872 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-08-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 07-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A V SREEKANTH
• Assessee Lawyers: S SRIDHAR
• Section: 6

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI ... , ! ', $ %& BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ./ ITA NO.1039/MDS/2015 ( )( / ASSESSMENT YEAR : 2013-14 MRS. ANITHA BHATT, C/O SHRI S. SRIDHAR, ADVOCATE, 112/1, PERIYAR STREET, ERODE 638 001. PAN : AIXPB 0061 F V. THE DEPUTY COMMISSIONER OF INCOME TAX, CPC-TDS, TDS CPC, AAYKAR BHAWAN, SECTOR 3, VAISHALI, GHAZIABAD, UTTAR PRADESH 201 010. (+,/ APPELLANT) (-.+,/ RESPONDENT) ./ ITA NO.1040/MDS/2015 ( )( / ASSESSMENT YEAR : 2013-14 S. KANNAMMA, C/O SHRI S. SRIDHAR, ADVOCATE, 112/1, PERIYAR STREET, ERODE 638 001. PAN : AERPK 9539 F V. THE DEPUTY COMMISSIONER OF INCOME TAX, CPC-TDS, TDS CPC, AAYKAR BHAWAN, SECTOR 3, VAISHALI, GHAZIABAD, UTTAR PRADESH 201 010. (+,/ APPELLANT) (-.+,/ RESPONDENT) ./ ITA NO.1041/MDS/2015 ( )( / ASSESSMENT YEAR : 2013-14 M/S THE SALEM URBAN CO-OP. BANK LIMITED, C/O SHRI S. SRIDHAR, ADVOCATE, 112/1, PERIYAR STREET, ERODE 638 001. PAN : AABAT 9761 B V. THE DEPUTY COMMISSIONER OF INCOME TAX, CPC-TDS, TDS CPC, AAYKAR BHAWAN, SECTOR 3, VAISHALI, GHAZIABAD, UTTAR PRADESH 201 010. (+,/ APPELLANT) (-.+,/ RESPONDENT) 2 I.T.A. NOS.1039 TO 1063/MDS/15 ./ ITA NO.1042/MDS/2015 ( )( / ASSESSMENT YEAR : 2013-14 M/S SHREE SHAKTHI VINAYAGAR WEAVES PVT. LTD., C/O SHRI S. SRIDHAR, ADVOCATE, 112/1, PERIYAR STREET, ERODE 638 001. PAN : AAJCS 8948 K V. THE DEPUTY COMMISSIONER OF INCOME TAX, CPC-TDS, TDS CPC, AAYKAR BHAWAN, SECTOR 3, VAISHALI, GHAZIABAD, UTTAR PRADESH 201 010. (+,/ APPELLANT) (-.+,/ RESPONDENT) ./ ITA NOS.1043 & 1044/MDS/2015 ( )( / ASSESSMENT YEAR : 2013-14 SHRI C. SEKARAN, C/O SHRI S. SRIDHAR, ADVOCATE, 112/1, PERIYAR STREET, ERODE 638 001. PAN : AIJPS 2988 J V. THE DEPUTY COMMISSIONER OF INCOME TAX, CPC-TDS, TDS CPC, AAYKAR BHAWAN, SECTOR 3, VAISHALI, GHAZIABAD, UTTAR PRADESH 201 010. (+,/ APPELLANT) (-.+,/ RESPONDENT) ./ ITA NOS.1045 & 1046/MDS/2015 ( )( / ASSESSMENT YEAR : 2013-14 M/S ANITHAA WEAVING MILL (P) LTD., C/O SHRI S. SRIDHAR, ADVOCATE, 112/1, PERIYAR STREET, ERODE 638 001. PAN : AAFCA 5624 G V. THE DEPUTY COMMISSIONER OF INCOME TAX, CPC-TDS, TDS CPC, AAYKAR BHAWAN, SECTOR 3, VAISHALI, GHAZIABAD, UTTAR PRADESH 201 010. (+,/ APPELLANT) (-.+,/ RESPONDENT) ./ ITA NOS.1047, 1048 & 1049/MDS/2015 ( )( / ASSESSMENT YEAR : 2013-14 M/S DINESH EXPORTS, C/O SHRI S. SRIDHAR, ADVOCATE, 112/1, PERIYAR STREET, ERODE 638 001. PAN : AADFD 9542 R V. THE DEPUTY COMMISSIONER OF INCOME TAX, CPC-TDS, TDS CPC, AAYKAR BHAWAN, SECTOR 3, VAISHALI, GHAZIABAD, UTTAR PRADESH 201 010. (+,/ APPELLANT) (-.+,/ RESPONDENT) 3 I.T.A. NOS.1039 TO 1063/MDS/15 ./ ITA NOS.1050, 1051 & 1052/MDS/2015 ( )( / ASSESSMENT YEAR : 2013-14 M/S MANOJ TEXTILE MILLS, C/O SHRI S. SRIDHAR, ADVOCATE, 112/1, PERIYAR STREET, ERODE 638 001. PAN : AAOFM 3244 J V. THE DEPUTY COMMISSIONER OF INCOME TAX, CPC-TDS, TDS CPC, AAYKAR BHAWAN, SECTOR 3, VAISHALI, GHAZIABAD, UTTAR PRADESH 201 010. (+,/ APPELLANT) (-.+,/ RESPONDENT) ./ ITA NOS.1053, 1054 & 1055/MDS/2015 ( )( / ASSESSMENT YEAR : 2013-14 M/S HANDLOOMS FASHIONS, 11/108, SEERANGAN STREET, NO.5, SANGEEVRAYAN PET, SALEM 636 006. PAN : AABFH 5815 M V. THE DEPUTY COMMISSIONER OF INCOME TAX, CPC-TDS, TDS CPC, AAYKAR BHAWAN, SECTOR 3, VAISHALI, GHAZIABAD, UTTAR PRADESH 201 010. (+,/ APPELLANT) (-.+,/ RESPONDENT) ./ ITA NOS.1056, 1057 & 1058/MDS/2015 ( )( / ASSESSMENT YEAR : 2013-14 SHRI P. SUBRAMANI, C/O SHRI S. SRIDHAR, ADVOCATE, 112/1, PERIYAR STREET, ERODE 638 001. PAN : AVGPS 8098 H V. THE DEPUTY COMMISSIONER OF INCOME TAX, CPC-TDS, TDS CPC, AAYKAR BHAWAN, SECTOR 3, VAISHALI, GHAZIABAD, UTTAR PRADESH 201 010. (+,/ APPELLANT) (-.+,/ RESPONDENT) ./ ITA NO.1059/MDS/2015 ( )( / ASSESSMENT YEAR : 2014-15 M/S M. GANESAN & CO., 1, ULIPURAM, GENGAVALLI 638 118. PAN : AAEFM 0748 B V. THE DEPUTY COMMISSIONER OF INCOME TAX, CPC-TDS, TDS CPC, AAYKAR BHAWAN, SECTOR 3, VAISHALI, GHAZIABAD, UTTAR PRADESH 201 010. (+,/ APPELLANT) (-.+,/ RESPONDENT) 4 I.T.A. NOS.1039 TO 1063/MDS/15 ./ ITA NOS.1060 & 1061/MDS/2015 ( )( / ASSESSMENT YEAR : 2013-14 M/S J.V. AGRO (P) LTD., 279, SANDAIPET MAIN ROAD, SHEVAPET, SALEM 636 002. PAN : AACCJ 0319 A V. THE DEPUTY COMMISSIONER OF INCOME TAX, CPC-TDS, TDS CPC, AAYKAR BHAWAN, SECTOR 3, VAISHALI, GHAZIABAD, UTTAR PRADESH 201 010. (+,/ APPELLANT) (-.+,/ RESPONDENT) ./ ITA NOS.1062 & 1063/MDS/2015 ( )( / ASSESSMENT YEAR : 2013-14 SHRI R. SIVAPRAKASH, 2 ND CROSS, 1 ST SENGUNTHAPURAM, PALLIPALAYAM 638 006. PAN : ALYPS 2687 N V. THE DEPUTY COMMISSIONER OF INCOME TAX, CPC-TDS, TDS CPC, AAYKAR BHAWAN, SECTOR 3, VAISHALI, GHAZIABAD, UTTAR PRADESH 201 010. (+,/ APPELLANT) (-.+,/ RESPONDENT) +, / 0 / APPELLANTS BY : SHRI S. SRIDHAR, ADVOCATE -.+, / 0 / RESPONDENT BY : SHRI A.V. SREEKANTH, JCIT 1 / 2$ / DATE OF HEARING : 20.07.2015 34) / 2$ / DATE OF PRONOUNCEMENT : 07.08.2015 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THESE APPEALS FILED BY DIFFERENT ASSESSEES ARE DI RECTED AGAINST THE RESPECTIVE ORDERS OF THE COMMISSIONER O F INCOME TAX (APPEALS), SALEM. SINCE COMMON ISSUE ARISES FOR CO NSIDERATION IN ALL THESE APPEALS, WE HEARD THESE APPEALS TOGETHER AND DISPOSING THE SAME BY THIS COMMON ORDER. 5 I.T.A. NOS.1039 TO 1063/MDS/15 2. THE ONLY ISSUE ARISES FOR CONSIDERATION IN ALL T HESE APPEALS IS WITH REGARD TO LEVY OF FEE UNDER SECTION 234E OF TH E INCOME-TAX ACT, 1961 (IN SHORT 'THE ACT'), WHILE PROCESSING THE STA TEMENT FURNISHED BY THE ASSESSEE UNDER SECTION 200A OF THE ACT. 3. WE HEARD THE LD.COUNSEL FOR THE ASSESSEE AND THE LD. DEPARTMENTAL REPRESENTATIVE. THE ONLY CONTENTION O F THE LD. D.R. IS THAT SECTION 234E OF THE ACT WAS INTRODUCED WITH EFFECT FROM 01.07.2012 WHICH ENABLES THE ASSESSING OFFICER TO L EVY FEE WHEN THE ASSESSEE FAILS TO DELIVER THE STATEMENT WITHIN THE TIME PRESCRIBED UNDER SECTION 200(3) OF THE ACT. 4. AFTER CONSIDERING THE RIVAL SUBMISSIONS ON EITHE R SIDE, WE FIND THAT THIS TRIBUNAL HAD AN OCCASION TO EXAMINE THE I SSUE ELABORATELY IN M/S NEELAGIRIS TEXTILES V. DCIT IN I.T.A. NOS.79 5 TO 797/MDS/2015 DATED 10.07.2015. THIS TRIBUNAL FOUND THAT PRIOR TO 01.06.2015, THE ASSESSING OFFICER HAD NO POWER TO M AKE ADJUSTMENT BY LEVYING FEE UNDER SECTION 234E OF THE ACT. THIS TRIBUNAL HAS ALSO FOUND THAT SECTION 200A OF THE AC T WAS AMENDED BY FINANCE ACT, 2015 WITH EFFECT FROM 01.06.2015 EN ABLING THE ASSESSING OFFICER TO MAKE ADJUSTMENT LEVYING FEE UN DER SECTION 234E OF THE ACT. ACCORDINGLY, THIS TRIBUNAL FOUND THAT THE ASSESSING OFFICER CANNOT LEVY FEE WHILE MAKING THE ADJUSTMENT S UNDER SECTION 6 I.T.A. NOS.1039 TO 1063/MDS/15 200A OF THE ACT IN RESPECT OF STATEMENT FILED BY TH E ASSESSEE. IN FACT, THIS TRIBUNAL HAS OBSERVED AS FOLLOWS IN NEEL AGIRIS TEXTILES (SUPRA) AS FOLLOWS:- 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITHE R SIDE AND PERUSED THE RELEVANT MATERIAL ON RECORD. SECTION 200A OF THE ACT PROVIDES FOR PROCESSING OF THE STATEME NT OF TAX DEDUCTED AT SOURCE BY MAKING ADJUSTMENT AS PR OVIDED IN THAT SECTION. FOR THE PURPOSE OF CONVENIENCE, W E ARE REPRODUCING THE PROVISIONS OF SECTION 200A OF THE ACT :- 200A. (1) WHERE A STATEMENT OF TAX DEDUCTION AT SOURCE OR A CORRECTION STATEMENT HAS BEEN MADE BY A PERSON DEDU CTING ANY SUM (HEREAFTER REFERRED TO IN THIS SECTION AS DEDUCTOR) UNDER SECTION 200, SUCH STATEMENT SHALL BE PROCESSED IN THE FOLLOWIN G MANNER, NAMELY : (A) THE SUMS DEDUCTIBLE UNDER THIS CHAPTER SHALL B E 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 DEDUCTIBLE AS COMPUTED IN THE STATE MENT ; (C) THE SUM PAYABLE BY, OR THE AMOUNT OF REFUND DU E TO, THE DEDUCTOR SHALL BE DETERMINED AFTER ADJUSTME NT OF AMOUNT COMPUTED UNDER CLAUSE (B) AGAINST ANY AMOUNT PAID UNDER SECTION 200 AND SECTION 201, AND ANY AMOUNT PAID OTHERWISE BY WAY OF TAX OR INTEREST ; (D) AN INTIMATION SHALL BE PREPARED OR GENERATED AN D SENT TO THE DEDUCTOR SPECIFYING THE SUM DETERMINED TO BE PAYABLE BY, OR THE AMOUNT OF REFUND DUE TO, HIM UNDER CLAUSE (C) ; AND 7 I.T.A. NOS.1039 TO 1063/MDS/15 (E) THE AMOUNT OF REFUND DUE TO THE DEDUCTOR IN PURSUANCE OF THE DETERMINATION UNDER CLAUSE (C) SHA LL BE GRANTED TO THE DEDUCTOR : PROVIDED THAT NO INTIMATION UNDER THIS SUB-SECTION SHALL BE SENT AFTER THE EXPIRY OF ONE YEAR FROM THE END OF THE FIN ANCIAL YEAR IN WHICH THE STATEMENT IS FILED. EXPLANATION FOR THE PURPOSES OF THIS SUB-SECTION, AN INCORRECT CLAIM APPARENT FROM ANY INFORMATION IN THE STATEMEN T SHALL MEAN A CLAIM, ON THE BASIS OF AN ENTRY, IN THE STATEMENT (I) OF AN ITEM, WHICH IS INCONSISTENT WITH ANOTHER ENTRY OF THE SAME OR SOME OTHER ITEM IN SUCH STATEMENT ; (II) IN RESPECT OF RATE OF DEDUCTION OF TAX AT SOURC E, WHERE SUCH RATE IS NOT IN ACCORDANCE WITH THE PROVISIONS OF TH IS ACT ; (2) FOR THE PURPOSES OF PROCESSING OF STATEMENTS UND ER SUB-SECTION (1), THE BOARD MAY MAKE A SCHEME FOR CENTRALISED PRO CESSING OF STATEMENTS OF TAX DEDUCTED AT SOURCE TO EXPEDITIOUSLY DETERMINE THE TAX PAYABLE BY, OR THE REFUND DUE TO, THE DEDUCT OR AS REQUIRED UNDER THE SAID SUB-SECTION. 7. THE ASSESSING OFFICER CANNOT MAKE ANY ADJUSTMENT OTHER THAN THE ONE PRESCRIBED ABOVE IN SECTION 200A OF THE ACT. BY FINANCE ACT, 2015, WITH EFFECT FROM 01.06.2015, THE PARLIAMENT AMENDED SECTION 200A BY SUBSTITUTING SU B- SECTION (1) OF CLAUSES (C) TO (E). FOR THE PURPOSE OF CONVENIENCE, WE ARE REPRODUCING THE AMENDMENT MADE IN SECTION 200A BY THE FINANCE ACT, 2015 AS UNDER:- 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 1 ST DAY OF JUNE, 2015, NAMELY:- (C) THE FEE, IF ANY, SHALL BE COMPUTED IN ACCORDA NCE WITH THE PROVISIONS OF SECTION 234E; (D) THE SUM PAYABLE BY, OR THE AMOUNT OF REFUND DU E TO, THE DEDUCTOR SHALL BE DETERMINED AFTER ADJUSTMENT OF TH E AMOUNT COMPUTED UNDER CLAUSE (B) AND CLAUSE (C) AGA INST ANY AMOUNT PAID UNDER SECTION 200 OR SECTION 201 OR SECTION 8 I.T.A. NOS.1039 TO 1063/MDS/15 234E AND ANY AMOUNT PAID OTHERWISE BY WAY OF TAX OR INTEREST OR FEE; (E) AN INTIMATION SHALL BE PREPARED OR GENERATED A ND SENT TO THE DEDUCTOR SPECIFYING THE SUM DETERMINED TO BE PA YABLE BY, OR THE AMOUNT OF REFUND DUE TO, HIM UNDER CLAUS E (D); AND (F) THE AMOUNT OF REFUND DUE TO THE DEDUCTOR IN PU RSUANCE OF THE DETERMINATION UNDER CLAUSE (D) SHALL BE GRAN TED TO THE DEDUCTOR. THEREFORE, IT IS OBVIOUS THAT PRIOR TO 01.06.2015, THERE WAS NO ENABLING PROVISION IN SECTION 200A OF THE ACT FOR M AKING ADJUSTMENT IN RESPECT OF THE STATEMENT FILED BY THE ASSESSEE WITH REGARD TO TAX DEDUCTED AT SOURCE BY LE VYING FEE UNDER SECTION 234E OF THE ACT. THE PARLIAMENT FOR THE FIRST TIME ENABLED THE ASSESSING OFFICER TO MAKE ADJUSTMENT BY LEVYING FEE UNDER SECTION 234E OF THE AC T WITH EFFECT FROM 01.06.2015. THEREFORE, AS RIGHTLY SUBMITTED BY THE LD.COUNSEL FOR THE ASSESSEE, WHILE PROCESSING STATEMENT UNDER SECTION 200A OF THE ACT, TH E ASSESSING OFFICER CANNOT MAKE ANY ADJUSTMENT BY LEV YING FEE UNDER SECTION 234E PRIOR TO 01.06.2015. IN THE CASE BEFORE US, THE ASSESSING OFFICER LEVIED FEE UNDER S ECTION 234E OF THE ACT WHILE PROCESSING THE STATEMENT OF TAX DEDUCTED AT SOURCE UNDER SECTION 200A OF THE ACT. THEREFORE, THIS TRIBUNAL IS OF THE CONSIDERED OPINI ON THAT THE FEE LEVIED BY THE ASSESSING OFFICER UNDER SECTI ON 234E OF THE ACT WHILE PROCESSING THE STATEMENT OF TAX DED UCTED AT SOURCE IS BEYOND THE SCOPE OF ADJUSTMENT PROVIDE D UNDER SECTION 200A OF THE ACT. THEREFORE, SUCH ADJUSTMENT CANNOT STAND IN THE EYE OF LAW. 4. BY FOLLOWING THE ABOVE ORDER OF THE CO-ORDINATE BENCH OF THIS TRIBUNAL FOR THE REASONS STATED THEREIN, THE ORDER OF THE LOWER AUTHORITIES ARE SET ASIDE. 5. IN THE RESULT, ALL THE APPEALS OF THE ASSESSEES ARE ALLOWED. 9 I.T.A. NOS.1039 TO 1063/MDS/15 ORDER PRONOUNCED ON 7 TH AUGUST, 2015 AT CHENNAI. SD/- SD/- ( ! ' ) ( ... ) (CHANDRA POOJARI) (N.R.S. GANESAN) $ / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 6 /DATED, THE 7 TH AUGUST, 2015. KRI. / -278 98)2 /COPY TO: 1. +, /APPELLANT 2. -.+, /RESPONDENT 3. 1 :2 () /CIT(A), SALEM 4. 1 :2 /CIT, TDS, CHENNAI 5. 8; -2 /DR 6. <( = /GF.