Zen Chemiconsultech Private Limited, Hyderabad V. TDS , Range-2, Hyderabad

ITA 1738/Hyd/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 2275 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 3 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-12-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 28-11-2019
• Assessment Year: 2013-2014
• Appeal Filed On: 23-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D J P ANAND
• Keywords: TDS; Set aside
• Section: 234E; 200A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B, HYDERABAD BEFORE SHRI D.KARUNAKARA RAO, ACCOUNTANT MEMBER AND SHRI V.DURGA RAO, JUDICIAL MEMBER ITA NO. A.Y. APPELLANT RESPONDENT 1737/HYD/18 2013-14 (QUARTER) M/S.ZEN CHEMICONSULTECH PRIVATE LIMITED, HYDERABAD [PAN: AAACZ0675M] INCOME TAX OFFICER (TDS), TDS WARD-2(4), HYDERABAD 1738/HYD/18 2013-14 (QUARTER) 1739/HYD/18 2013-14 (QUARTER) FOR ASSESSEE : NONE FOR REVENUE : SHRI D.J.P.ANAND, DR DATE OF HEARING : 28-11-2019 DATE OF PRONOUNCEMENT : 04-12-2019 O R D E R PER D.KARUNAKARA RAO, A.M. : THERE ARE THREE APPEALS UNDER CONSIDERATION, INVOLVED FOR THE AY.2013-14 (DIFFERENT QUARTERS). THESE ORDERS ARE PA SSED U/S.200A OF THE INCOME TAX ACT [ACT]. 2. AT THE OUTSET, IT IS BROUGHT TO OUR NOTICE THAT THERE IS N ONE APPEARED TO REPRESENT THE ASSESSEE. 3. LD.DR FOR THE REVENUE FAIRLY SUBMITTED THAT IT IS A C OVERED ISSUE AND THE ISSUE RELATES TO LEVY OF LATE FEE U/S.234 E OF THE ACT, WHEN THERE IS NO POWER GRANTED BY THE STATUTE AT THE RELEV ANT POINT ITA NOS. 1737, 1738 & 1739/HYD/2018 :- 2 -: OF TIME TO THE ASSESSING OFFICER (AO) U/S.200A OF THE A CT. MENTIONING THAT THIS IS THE CASE PERTAINING TO THE QUARTER FOR THE AY.2013-14, UNDER THE RELEVANT PROVISIONS OF THE ACT I .E., U/S.200A OF THE ACT, AO DOES NOT HAVE THE POWER TO LEVY SUCH LAT E FEE U/S.234E OF THE ACT. 3.1. FURTHER, LD.DR FAIRLY SUBMITTED THAT THE PROVISIO NS OF THE ACT WERE AMENDED BY THE FINANCE ACT, 2015 W.E.F.01-06-201 5. THIS AMENDMENT BEING PROSPECTIVE, THE LEVY OF SUCH LATE FEE BY THE AO U/S.234E OF THE ACT, PRIOR TO THE DATE OF THE SAID AMENDM ENT ARE UNSUSTAINABLE IN LAW. THEREFORE, THE LATE FEE HAS TO BE DELETED FOR WANT OF JURISDICTION TO THE AO. 4. NOW, THE SAID ISSUE IS COVERED IN FAVOUR OF ASSES SEE BY THE DECISION OF THE CO-ORDINATE BENCH OF ITAT, PUNE TRIBU NAL IN THE CASE OF C&M FARMING LTD., VS. ACIT, IN ITA NOS.2008 TO 2017/PUN/2017, DT.06-11-2019, WHEREIN THE UNDERSIGNED IS A PARTY (AM). IN THE SAID CASE, THE CO-ORDINATE BENCH H AS FOLLOWED THE DECISION OF ANOTHER CO-ORDINATE BENCH IN THE CASE O F MEDICAL SUPERINTENDENT RURAL HOSPITAL, DOBI BK VS. DCIT, CPC(T DS) REPORTED IN (2018) [100 TAXMANN.COM 78] (PUNE-TRIB) . FOR THE SAKE OF COMPLETENESS, RELEVANT LINES OF THE ORDER DT.06-11-2 019 ARE EXTRACTED HERE UNDER: 8. HEARD BOTH SIDES AND PERUSED THE MATERIAL AVAIL ABLE ON RECORD. WE FIND THE ISSUE RAISED IN THE PRESENT APPEAL IS SIMI LAR TO THE ISSUE RAISED BY THE CO-ORDINATE BENCH OF THE TRIBUNAL IN THE CASE OF MEDICAL SUPERINTENDENT RURAL HOSPITAL, DOBI BK(SUPRA), WHEREIN THE CO-ORDI NATE BENCH OF THE TRIBUNAL HELD THAT CHARGING OF LATE FEE U/S 234E O F THE ACT IS NOT MAINTAINABLE EVEN IF THE ASSESSEE FILES TDS RETURNS BELATEDLY AND THE ASSESSING OFFICER ISSUES INTIMATION U/S 200A OF THE ACT AFTER 01.06.2015 CHARGING LATE FILING FEE U/S 234E OF THE ACT. THE REFORE, WE FIND FORCE IN THE ARGUMENTS OF SHRI KISHORE PHADKE, LD.A.R. AND THE IMPOSITION OF LATE FEE ITA NOS. 1737, 1738 & 1739/HYD/2018 :- 3 -: U/S 200A R.W 234E OF THE ACT CONFIRMED BY LD.CIT(A ) IS SET ASIDE. THUS, ADDITIONAL GROUND RAISED BY THE ASSESSEE IS ALLOWED . 4.1. SINCE THE FACTS BEFORE US ARE IDENTICAL TO ONE AS DECIDED BY THE CO-ORDINATE BENCH OF THE TRIBUNAL, RESPECTFULLY FOLLOW ING THE SAME, WE ARE OF THE OPINION THAT THE DEMAND OF LATE FEE IS NO T MAINTAINABLE EVEN IF THE RETURNS OF THE TDS WERE FILED AFTER 01-06-2 015, THE ORDER CHARGING LATE FILING FEE WAS PASSED AFTER 01-06-2015 . HENCE, WE SET ASIDE THE ORDER OF LD.CIT(A) AND ALLOW THE GROUNDS RAISED BY ASSESSEE FOR ALL THE QUARTERS. 5. IN THE RESULT, ALL THE APPEALS OF ASSESSEE ARE ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON 4 TH DECEMBER, 2019 SD/- SD/- (V. DURGA RAO) (D. KARUNAKARA R AO) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED 4 TH DECEMBER, 2019 TNMM ITA NOS. 1737, 1738 & 1739/HYD/2018 :- 4 -: COPY TO : 1. M/S.ZEN CHEMICONSULTECH PRIVATE LIMITED, PLOT NO .35, ZEN HOUSE, SWAMY AYYAPPA SOCIETY, MADHAPUR, HYDERABAD. 2. THE INCOME TAX OFFICER (TDS), TDS WARD-2(4), HYD ERABAD. 3. CIT(APPEALS)-8, HYDERABAD. 4. CIT(TDS), HYDERABAD. 5. D.R. ITAT, HYDERABAD. 6. GUARD FILE.