St. Bedes Educational Society, Shimla V. DCIT, CPC (TDS), Vaishali

ITA 1707/CHANDI/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 4967 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-05-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 27-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, B CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND DR. B.R.R. KUMAR, ACCOUNTANT MEMBER ITA NO. 1707/CHD/2017 ASSESSMENT YEAR : 2013-14 ST. BEDES EDUCATIONAL SOCIETY, VS. THE DCIT, CPC TD S. STE BEDES COLLEGE, VAISHALI NAV BAHAR, CHOTTA SHIMLA, SHIOMLA-171002 PAN NO. AACTS3117L (APPELLANT) (RESPONDENT) APPELLANT BY : WRITTEN SUBMISSIONS RESPONDENT BY : SH. MANJIT SINGH, SR.DR DATE OF HEARING : 09.05.2018 DATE OF PRONOUNCEMENT : 09. 05.2018 ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 27.10.2017 OF THE COMMISSIONER OF I NCOME TAX(APPEALS), SHIMLA [HEREINAFTER REFERRED TO AS CIT(A)]. 2. THE SOLE GROUND TAKEN BY THE ASSESSEE IN ITS APP EAL IS AS UNDER:- THAT LD. CIT(A) HAS ERRED IN LAW AND FACTS OF TH E CASE BY UPHOLDING 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 ASSESSEE STATED THAT THE FEES IN THE PRESENT CASE W AS LEVIED WHILE ITA NO.1707/CHD/2017- ST. BEDES EDUCATIONAL SOCIETY, SHIMLA 2 PROCESSING THE TDS RETURN U/S 200A OF THE ACT, PR IOR TO 01.06.2015, AND THAT AS PER THE PROVISIONS OF SECTI ON 200A OF THE ACT, WHICH EXISTED ON THE DATE WHEN THE ABOVE RETUR N WAS PROCESSED, NO ADJUSTMENT ON ACCOUNT OF FEES U/S 234E COULD BE MADE 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. 5. IN VIEW OF ABOVE, THE ADDITION MADE BY THE ASSESSING OFFICER ITA NO.1707/CHD/2017- ST. BEDES EDUCATIONAL SOCIETY, SHIMLA 3 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. SD/- SD/- (B.R.R.KUMAR) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 09.05.2018 RKK COPY TO: THE APPELLANT THE RESPONDENT THE CIT THE CIT(A) THE DR