M/s Lotus Machines Pvt. Ltd., Chandigarh V. DCIT, CPC (TDS-1), Vaishali current Jurisdcition ITO (TDS-1), Chandigarh

ITA 1137/CHANDI/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 5019 (ITAT-CHANDIGARH)
• Duration Of Justice: 10 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-05-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 11-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DEEPIKA MOHAN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND DR. B.R.R. KUMAR, ACCOUNTANT MEMBER ITA NO. 1137/CHD/2017 ASSESSMENT YEAR : 2013-14 M/S LOTUS MACHINES PVT LTD., VS. THE DCIT, PLOT NO.1059, INDUSTRIAL AREA, CPC (TDS) -1, PHASE II, CHANDIGARH VAISHALI, GHAZIABAD, CURRENT JURISDICTION, ITO (TDS-1), CHANDIGARH PAN NO. AAACL2508D (APPELLANT) (RESPONDENT) APPELLANT BY : SH. PRIKSHIT AGGARWAL, CA RESPONDENT BY : MS. DEEPIKA MOHAN, JCIT DATE OF HEARING : 14.05.2018 DATE OF PRONOUNCEMENT : 14.05.2018 ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 03.04.2017 OF THE COMMISSIONER OF I NCOME TAX(APPEALS)-1, CHANDIGARH [HEREINAFTER REFERRED TO AS CIT(A)]. 2. THOUGH AS MANY AS SIX GROUNDS HAVE BEEN RAISED I N THE APPEAL BUT THE SOLE ISSUE TAKEN BY THE ASSESSEE THROUGH ITS GROUNDS OF APPEAL RELATES TO ACTION OF LD. CIT(A) IN CONFIRMIN G THE LEVY OF FEE U/S 234 E THROUGH NOTICE U/S 200A IMPOSED BY THE LD . ASSESSING OFFICER. 3. DURING THE COURSE OF HEARING BEFORE US, LD. COU NSEL FOR THE ITA NO.1137/CHD/2017- M/S LOTUS MACHINES PVT LTD., CHANDIGARH 2 ASSESSEE STATED THAT THE FEES IN THE PRESENT CASE W AS LEVIED WHILE PROCESSING THE TDS RETURN U/S 200A OF THE ACT, PRIO R TO 01.06.2015, AND THAT AS PER THE PROVISIONS OF SECTION 200A OF T HE ACT, WHICH EXISTED ON THE DATE WHEN THE ABOVE RETURN WAS PROCE SSED, NO ADJUSTMENT ON ACCOUNT OF FEES U/S 234E COULD BE MAD E WHILE PROCESSING THE SAID RETURN U/S 200A OF THE ACT. T HE LD. COUNSEL FOR THE ASSESSEE POINTED OUT THAT THE MANDATE TO MAKE S UCH ADJUSTMENT WAS PROVIDED BY THE STATUTE ONLY W.E.F. 01.06.2015 BY WAY OF AN AMENDMENT MADE TO SECTION 200A BY THE FINANCE ACT, 2015. THE LD. COUNSEL FOR THE ASSESSEE, THEREFORE, STATED THAT TH E ADJUSTMENT MADE IN THE PRESENT CASE OF LEVYING FEES U/S 234E WHILE PROCESSING THE TDS RETURN U/S 200A OF THE ACT WAS BAD IN LAW. THE LD. COUNSEL FOR THE ASSESSEE POINTED OUT THAT THE ITAT IN A NUMBER OF CASES HAD DELETED FEES LEVIED IN IDENTICAL CIRCUMSTANCES HOLD ING THAT PRIOR TO 01.06.2015, FEES U/S 234E COULD NOT BE CHARGED BY W AY OF MAKING ADJUSTMENT WHILE PROCESSING TDS RETURN U/S 200A OF THE ACT. OUR ATTENTION WAS DRAWN TO THE FOLLOWING CASE LAWS IN S UPPORT OF THE ABOVE PROPOSITION: 1. M/S KHANNA WATCHES LTD. V DCIT CPC(TDS) ITA 731 TO 735/CHD/2015 DATED 29.10.2015 2. SIBIA HEALTHCARE PVT. LTD. VS DCIT (2015) 121 I TR 81 (AMRITSAR) 3. M/S SONAIAC PAINTS & COATINGS LTD. VS. DCIT I TA NO. 1158/CHD/2017 ORDER DATED 1.2.2018 4. THE LD. DR FAIRLY ADMITTED THAT THE ISSUE IS SQUARELY COVERED BY THE AFORESAID DECISIONS OF THE TRIBUNAL. ITA NO.1137/CHD/2017- M/S LOTUS MACHINES PVT LTD., CHANDIGARH 3 5. IN VIEW OF ABOVE, THE ADDITION MADE BY THE ASSESSING OFFICER ON ACCOUNT OF FEE U/S 234E OF THE ACT WHILE PROCESS ING THE RETURN U/S 200A IS BEING WITHOUT AUTHORITY OF LAW AND THE SAM E IS DIRECTED TO BE DELETED. IN THE RESULT, THE APPEAL OF THE ASSESSEE I S HEREBY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (B.R.R.KUMAR) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 14.05.2018 RKK COPY TO: THE APPELLANT THE RESPONDENT THE CIT THE CIT(A) THE DR