Appeal details
Counselvise Citation
[2018] 126 COUNSELVISE.COM (IT) 5247 (ITAT-CHANDIGARH)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
4 month(s) 6 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
29-01-2018
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
B
Assessment Year
2013-2014
Appeal Filed On
22-09-2017
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH B, CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NO. 1399/CHD/2017 (ASSESSMENT YEARS: 2013-14) SH. DALIP SINGH RATHORE, VS. THE DCIT, CPC, TDS RATHORE BUSINESS CENTRE, VAISHALI BCS, BYE PASS ROAD NEW SHIMLA PAN: AFGPR3037M TAN: PTLD12665C ITA NO. 1400/CHD/2017 (ASSESSMENT YEAR: 2014-15) SH. DALIP SINGH RATHORE, VS. THE DCIT, CPC, TDS RATHORE BUSINESS CENTRE, VAISHALI BCS, BYE PASS ROAD NEW SHIMLA ITA NO. 1401/CHD/2017 (ASSESSMENT YEAR: 2013-14) SH. UMESH KUMAR SHARMA VS. THE DCIT, CPC, TDS KRISHNA DEV BUILDING, DHALLI, VAISHALI SHIMLA PAN: ARLPS2373L TAN: PTLU10842G ITA NO. 1402/CHD/2017 (ASSESSMENT YEAR: 2013-14) SH. KRISHNA EDUCATIONAL SOCIETY, VS. THE DCIT, CPC, TDS AIRPORT ROAD, TOTU, VAISHALI SHIMLA PAN: AABTK4511H TAN: PTLK11641A ITA NO. 1403/CHD/2017 (ASSESSMENT YEAR: 2013-14) SH. VIDIT JAIN, VS. THE DCIT, CPC, TDS JAIN TRADERS, BYE PASS ROAD, VAISHALI KASUMPTI, SHIMLA PAN: AFDPJ2512C TAN: PTLV11398C 2 ITA NO. 1404/CHD/2017 (ASSESSMENT YEAR: 2013-14) M/S. AJAY KUMAR SOOD ENGINEERS VS. THE DCIT, CPC, TDS & CONTRACTORS,SANJAY SADAN, VAISHALI CHOTTA SHIMLA, H.P. PAN: AAKFA4648J TAN: PTLA12835E (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI. DINESH SOOD RESPONDENT BY : SHRI. MANJIT SINGH DATE OF HEARING : 16/01/2018 DATE OF PRONOUNCEMENT : 29/01/2018 ORDER PER BENCH : ALL THE ABOVE APPEALS HAVE BEEN FILED BY DIFFERENT ASSESSEES AGAINST SEPARATE ORDERS OF THE CIT(A) SHIMLA. 2. IT WAS COMMON GROUND BETWEEN BOTH THE PARTIES TH AT THE ISSUE INVOLVED IN ALL THE APPEALS WAS COMMON, PERTAINING TO CHARGI NG OF FEES FOR LATE FILING OF TDS RETURN, UNDER THE PROVISIONS OF SECTION 234 E O F THE INCOME TAX ACT 1961. THE APPEALS WERE THEREFORE HEARD TOGETHER AND ARE BEING DISPOSED OFF BY WAY OF A COMMON ORDER. 3. BRIEFLY STATED THE ASSESSEE HAD FILED THE FOLL OWING TDS RETURNS LATE AS A CONSEQUENCE OF WHICH WHILE PROCESSING THE TDS RETUR NS AND ISSUING AN INTIMATION UNDER SECTION 200A OF THE ACT, FEE ON ACCOUNT OF TH E LATE FILING OF THE AFOREMENTIONED TDS RETURN WAS CHARGED AS UNDER: APPEAL NO. TDS RETURN DATE OF FILING TDS RETURN FEES LEVIED U/S 234E ITA NO. 1399/CHD/2017 FORM NO. 26Q OF 4 TH QUARTER FOR F.Y. 2012-13 18/09/2013 RS. 25,820/- FORM NO. 26Q OF 1 ST QUARTER FOR F.Y. 2013-14 15/10/2013 RS. 18,310/- ITA NO. 1400/CHD/2017 FORM NO. 26Q OF 4 TH QUARTER FOR F.Y. 2012-13 18/09/2013 RS. 25,820/- FORM NO. 26Q OF 1 ST QUARTER FOR F.Y. 2013-14 15/10/2013 RS. 18,310/- ITA NO. 1401/CHD/2017 FORM NO. 26Q OF 4 TH QUARTER FOR F.Y. 2012-13 13/12/2013 RS. 24,040/- ITA NO. 1402/CHD/2017 FORM NO. 24Q OF 2 ND QUARTER FOR F.Y. 2012-13 FORM NO. 24Q OF 4 TH QUARTER FOR F.Y. 2012-13 15/11/2013 RS. 33,110/- RS. 20,000/- 3 FORM NO. 26Q OF 4 TH QUARTER FOR F.Y. 2012-13 RS. 30,000/- ITA NO. 1403/CHD/2017 FORM NO. 26Q OF 4 TH QUARTER FOR F.Y. 2012-13 23/10/2013 RS. 28,050/- ITA NO. 1404/CHD/2017 FORM NO. 26Q OF 2 ND QUARTER FOR F.Y. 2012-13 FORM NO. 26Q OF 3 RD QUARTER FOR F.Y. 2012-13 FORM NO. 26Q OF 4 TH QUARTER FOR F.Y. 2012-13 15/04/2013 RS. 36,400/- RS. 18,000/- RS. 13,800/- 4. THE ASSESSEE WENT IN APPEAL AGAINST THE AFOREMEN TIONED INTIMATIONS, TO THE CIT(A), WHO UPHELD THE LEVY OF FEES. 5. AGGRIEVED BY THE SAME THE ASSESSEE HAS COME UP I N APPEAL BEFORE US CHALLENGING THE ACTION OF THE LD. CIT(A) IN UPHOLDI NG THE LEVY OF FEES UNDER SECTION 234E OF THE ACT RAISING IDENTICAL GROUNDS I N ALL THE APPEALS AS UNDER: THE LD. CIT(A) HAS ERRED IN LAW AND FACT OF THE CA SE BY UPHOLDING LEVY OF FEE UNDER SECTION 234E THROUGH NOTICE UNDER SECTION 200 A IMPOSED BY THE LD. A.O. 6. DURING THE COURSE OF HEARING BEFORE US LD. COUNS EL FOR THE ASSESSEE STATED THAT IN ALL THE IMPUGNED CASES THE FEE HAD BEEN LEV IED PRIOR TO 01/06/2015. LD. COUNSEL FOR THE ASSESSEE STATED THAT THE HONBLE IT AT, IN NUMBER OF DECISIONS, HAS HELD THAT FEE UNDER SECTION 234E WAS NOT LEVIAB LE PRIOR TO 01/06/2015. LD. COUNSEL FOR THE ASSESSEE RELIED UPON THE FOLLOWING CASE LAWS IN SUPPORT OF ITS ABOVE CONTENTION: 1. M/S KHANNA WATCHES LTD. VS. DCIT (CPC)-TDS IN ITA N OS. 731 TO 735/CHD/2015 A.Y. 2014- 15 & 2013-14 2. SIBIA HEALTH CARE PVT. LTD. VS. DCIT(TDS) CPC IN IT A NO. 90/ASR/2015 A.Y. 2013-14 3. M/S ASIAN PIPES & PROFILES VS. A.O. TDS IN ITA NOS. 4740 & 4741/MUM/2016 A.Y. 2013-14 4. ITO(TDS) VS. LIC AND OTHERS IN ITA NOS. 1930/1931/D EL/2014 A.Y. 2010-11 5. KASH REALTORS PVT. LTD. VS. ITO(TDS) AND OTHERS IN ITA NO. 4199/M/2015 A.Y. 2013-14 7. LD. COUNSEL FOR THE ASSESSEE FURTHER STATED THAT THE DECISION OF THE HONBLE BOMBAY HIGH COURT IN THE CASE OF RASHMIKANT KUNDALI A VS. UNION OF INDIA REPORTED IN 54 TAXMAN.COM 200 & M/S DUNDLOD SHIKSHA N SANSTHAN & .. VS. UOI & ORS. REPORTED IN 284 CTR 175 ,WHICH WAS RELIED UP ON BY THE CIT(A) WHILE DISMISSING THE ASSESSEES APPEAL ,WERE DEALT WITH AN D TAKEN INTO CONSIDERATION BY THE ITAT WHILE RENDERING THE DECISION IN THE CAS E OF KHANNA WATCHES (SUPRA). LD. COUNSEL FOR THE ASSESSEE THEREFORE STATED THAT THE ISSUE IN THE PRESENT CASES WAS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE AND THE LD. CIT(A) HAD INCORRECTLY UPHELD THE LEVY OF FEES IN ALL THE ABOV E CASES. 4 8. LD. DR ON THE OTHER HAND RELIED ON THE ORDER OF LD. CIT(A) AND CONTENDED THAT IN VIEW OF THE DECISION OF THE HONBLE BOMBAY HIGH COURT IN THE CASE OF RASHMIKANT KUNDALIA (SUPRA) & HONBLE HIGH COURT OF RAJASTHAN IN THE CASE OF M/S DUNDLOD SHIKSHAN SANSTHAN (SUPRA)THE LD. CIT(A ) HAD RIGHTLY UPHELD THE LEVY OF FEES U/S 234E OF THE ACT. 9. WE HAVE HEARD THE LD. REPRESENTATIVES OF BOTH TH E PARTIES AND PERUSED THE CASE LAWS REFERRED TO BEFORE US. 10. THE ISSUE IN THE PRESENT CASE RELATES TO ADJUS TMENT MADE IN THE INTIMATION OF TDS RETURN U/S 200A OF THE ACT, ON ACCOUNT OF L EVY OF FEES AS PRESCRIBED BY SECTION 234E OF THE ACT, FOR LATE FILING OF TDS RET URN. ON GOING THROUGH THE CASE LAWS RELIED UPON BY THE LD. COUNSEL FOR THE ASSESSE E WE FIND THAT IT WAS HELD IN ALL THE SAID CASES THAT FEE UNDER SECTION 234E COUL D BE LEVIED IN AN INTIMATION MADE UNDER SECTION 200A OF THE ACT, ONLY POST 01/06 /2015 . THE ITAT IN THE SAID CASES, AFTER GOING THROUGH THE PROVISIONS OF SECTIO N 200A ,WHICH DEALS WITH THE PROCESSING OF TDS RETURNS, FOUND THAT IT WAS ONLY B Y VIRTUE OF AMENDMENT MADE TO THE SAID SECTION VIDE FINANCE ACT 2015, THAT ADJ USTMENT ON ACCOUNT OF FEES U/S 234E WAS SPECIFICALLY MANDATED WHILE PROCESSING TDS RETURNS U/S 200A. IT WAS FURTHER FOUND THAT THE AMENDMENT CAME INTO EFFECT F ROM 01-06-2015. CONSIDERING THE SAME ,IT WAS HELD THAT PRIOR TO 01- 06-2015 NO ADJUSTMENT ON ACCOUNT OF FEES AS PER SECTION 234E COULD BE MADE I N THE INTIMATION UNDER SECTION 200A OF THE ACT. 11. IN THE PRESENT CASE, THE FACTS ON RECORD REVEAL THAT THE INTIMATION U/S 200A IN ALL THE CASES WAS DATED PRIOR TO 01-06-2015 AS U NDER: ITA NO.1399/CHD/2017 INTIMATION U/S 200A DT. 10-01-2014 &13-03-2014 ITA NO.1400/CHD/2017 INTIMATION U/S 200A DT.10-01-2014 &13-03-2014 ITA NO.1401/CHD/2017 INTIMATION U/S 200A DT.11-01-2014 ITA NO.1402/CHD/2017 INTIMATION U/S 200A DT.11-01-2014 ITA NO.1403/CHD/2017 INTIMATION U/S 200A DT.11-01-2014 ITA NO.1404/CHD/2017 INTIMATION U/S 200A DT.06-11-2013 5 12. IN VIEW OF THE ABOVE FACTS THE DECISION OF THE ITAT IN THE VARIOUS CASES AS CITED BY THE LD. COUNSEL FOR THE ASSESSEE WILL SQUA RELY APPLY, FOLLOWING WHICH WE HOLD THAT NO INTEREST U/S 234E IS LEVIABLE AND THE INTEREST SO LEVIED IS THEREFORE DELETED. 13. THE DECISIONS OF THE HONBLE HIGH COURT OF BOMB AY AND RAJASTHAN ,RELIED UPON BY THE LD. DR ,WE FIND ARE ON THE CONSTITUTION AL VALIDITY OF THE PROVISION OF SECTION 234E, WHICH WAS UPHELD IN THE SAID DECISION S. THERE IS NO DISPUTE VIS A VIS THE CONSTITUTIONAL VALIDITY OF THE SECTION BEFORE U S IN ALL THE CASES FILED. THE ONLY DISPUTE IS WHETHER THE FEE COULD BE LEVIED IN THE F ACTS AND CIRCUMSTANCES OF THE CASE ,BEING PRIOR TO 01/06/2015. THEREFORE THE SAID DECISIONS ARE OF NO ASSISTANCE TO THE REVENUE AND MERIT NO CONSIDERATION. 14. IN VIEW OF THE ABOVE ALL THE APPEALS FILED BY T HE ASSESSEE ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (SANJAY GARG) (ANNAPURNA GUPTA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 29/01/2018 AG COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A)S 4. THE CIT 5. THE DR
