Telephone Shoppees, Pune V. Income Tax Officer(TDS-3), Pune

ITA 190/PUN/2023

AI Insights

The case involves a series of appeals by Telephone Shoppees against the orders of the National Faceless Appeal Centre, Delhi, which upheld the levies of late filing fees under section 234E of the Income-tax Act for various quarters from the assessment years 2013-14 to 2015-16. The primary legal issue was whether the levy of such fees was authorized in the absence of an enabling provision at the time the defaults occurred. The ITAT examined the legislative timeline and the specific provisions of the Act to determine the legality of the fees imposed for late filing of TDS statements.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 136300 (ITAT-PUNE)
• Duration Of Justice: 1 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-04-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 04-04-2023
• Assessment Year: misc
• Appeal Filed On: 15-02-2023
• Other Referred Cases: Fatheraj Singhvi & Ors Vs UOI
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: TDS
• Section: 250; 234E

Judgement Text

॥ आयकर अपीलीय न्यायाधिकरण, पुणे “बी” न्यायपीठ, पुणे में ॥ ITAT-Pune Page 1 of 6 IN THE INCOME TAX APPELLATE TRIBUNAL, PUNE “B” BENCH, PUNE BEFORE HON’BLE SHRI S. S. GODARA, JUDICIAL MEMBER AND SHRI G. D. PADMAHSHALI, ACCOUNTANT MEMBER Sr ITA No(s). Appellant Respondent Asstt. Yr. Qtr. Form 1-3 189/PUN/2023 to 191/PUN /2023 Telephone Shoppees ITO, (TDS-3), Pune 2013-14 Q2 Q3 Q4 24Q 24Q 24Q 4-5 192/PUN/2023 to 193/PUN /2023 Telephone Shoppees ITO, (TDS-3), Pune 2013-14 Q2 Q3 26Q 26Q 6-7 194/PUN/2023 to 195/PUN /2023 Telephone Shoppees ITO, (TDS-3), Pune 2015-16 Q1 Q2 24Q 24Q 8-9 196/PUN/2023 to 197/PUN /2023 Telephone Shoppees ITO, (TDS-3), Pune 2015-16 Q1 Q2 26Q 26Q 10 198/PUN/2023 Telephone Shoppees ITO, (TDS-3), Pune 2014-15 Q1 24Q द्वारा / Appearances Assessee by : Shri C. V. Deshpande Revenue by : Shri M. G. Jasnani सुनवाई की तारीख / Date of conclusive Hearing : 05/04/2023 घोषणा की तारीख / Date of Pronouncement : 05/04/2023 Telephone Shoppees ITA Nos.189 to 198/PUN2023 ITAT-Pune Page 2 of 6 आदेश / ORDER PER BENCH The present bunch of ten appeals of the assessee are assailed against respective orders of first appellate order of National Faceless Appeal Centre, Delhi [for short “CIT(A)”] passed u/s 250 of the Income-tax Act, 1961 [for short “the Act”], which ascended out of respective orders of intimation processed by the CIT/CPC-TDS, Pune [for short “AO”] for various quarters pertaining to the assessment years [for short “AY”] 2013-14 to 2015-16. 2. Since the facts and issue involved in these bunch of ten appeals are identical and heard together for a consolidated order, resultantly the adjudication laid in ITA No. 189/PUN/2023 shall mutatis mutandis apply to ITA No. 190/PUN /2023 to 198/PUN/2023. 3. Without reproducing the grounds of appeal, it shall suffice to state that, the present bunch of appeal seeks to adjudicate the issue of authorisation of levy of fees u/s 234E for default in furnishing statement u/s 200(3) in the absence of enabling provision in the Act at the relevant time of occurrence of default in filing the statement. Telephone Shoppees ITA Nos.189 to 198/PUN2023 ITAT-Pune Page 3 of 6 4. Briefly stated the undisputed facts of the case as; the appellant assessee failed to deliver the TDS statements within the time limit specified in sub-section (3) of section 200 of the Act, consequently against such default, the Ld. AO levied late filing fees u/s 234E of the Act. Aggrieved thereby, the assessee carried the matter unsuccessfully before the first appellate authority [for short “FAA”], therefore the appellant is in appeal before us challenging the very levy of fees in the absence of authority and enabling provisions as contra-legem. 5. We have heard the rival contentions of both the parties; and subject to the provisions of rule 18 of Income Tax Appellate Tribunal Rules, 1963 [for short “ITAT, Rules”] perused the material placed on record, case laws relied upon by the appellant as well the respondent and duly considered the facts of the case in the light of settled legal position forewarned to either parties. 6. At the outset, having considered the reasons for delay in instituting the present appeal, in the larger interest of justice said delay stands condoned. Telephone Shoppees ITA Nos.189 to 198/PUN2023 ITAT-Pune Page 4 of 6 7. In the context of levy of fees for default, it shall serve to state that, a person liable to deduct any sum under the provisions of chapter XVII of the Act, is under obligation to deliver or furnish a statement u/s 200(3) of the Act within the due date prescribed therein and in the event of default such person is exposed to section 234E of the Act. Although the levy of fees u/s 234E for delay in furnishing statement has been brought into statute w.e.f. 1 st July, 2012, the enabling provision of section 200A(1)(c) authorising such levy came into force w.e.f. 1 st June, 2015 by Finance Act, 2015, consequently the fees levied for any default prior thereto being sine auctoritate hence unsustainable in the eyes of law. For the sake brevity the applicability of provisions can be adumbrated as under; Assessment Year Provision Enabling for Date of Charring of Fees u/s 234E Processing of Statement u/s 200A(1)(c) Statement furnished u/s 200(3) Effective Levy runs from (Delay) Any AY Upto 2012-13 Not Present Not Provided By 31st May, 2015 - After 1st June, 2015 1st June, 2015 2013-14 to 2015-16 Enacted Not Provided By 31st May, 2015 - After 1st June, 2015 1st June, 2015 From 2016-17 Present Provided By 31st May, 2015 - After 1st June, 2015 1st June, 2015 Telephone Shoppees ITA Nos.189 to 198/PUN2023 ITAT-Pune Page 5 of 6 8. As it is clearly discernable from the above tabulation that, in respect of any assessment year the levy of fees for delayed filing of TDS statement can only be permissible where such statement is filed after 31 st May, 2015. 9. Undisputedly, in the present case, the regular TDS statement was first filed on 19/10/2013 i.e. before aforestated deadline of 31 st May 2015, however the Ld. AO processed the statement and levied the fees u/s 234E for delayed furnishing in the absence of enabling provision of section 200A(1)(c) of the Act. Such levy in the light of aforestated discussion suffers from infirmity and bad in law in the light of decision of Hon’ble High Court of Karnataka in “Fatheraj Singhvi & Ors Vs UOI” reported in 289 CTR 602, ergo we order accordingly. 10. Since in remaining all the appeals i.e. ITA No 190/PUN/2023 to 198//PUN/2023, the initial TDS statement for the respective quarter were filed much before the deadline date i.e. 31 st May, 2015 and in the absence of any contrary facts brought to our notice by the Ld. DR, all these appeals shall succeed. Telephone Shoppees ITA Nos.189 to 198/PUN2023 ITAT-Pune Page 6 of 6 11. Resultantly, all the appeals of the appellant are ALLOWED in terms of above. In terms of rule 34 of ITAT Rules, the order pronounced in the open court on this Wednesday 05 th day of April, 2023. -S/d- -S/d- S. S. GODARA G. D. PADMAHSHALI JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / PUNE ; दिन ांक / Dated : 05 th day of April, 2023. आदेश की प्रधिधलधप अग्रेधिि / Copy of the Order forwarded to : 1. अपील र्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The CIT(TDS), Pune(M.H.-India) 4. The CIT(A) NFAC, Delhi (India) 5. DR, ITAT, Pune Bench, 6. ग र्डफ़ इल / Guard File. आिेश नुस र / By order. वररष्ठ दनजी सदिव / Sr. Private Secretary. आयकर अपीलीय न्य य दिकरण, पुणे / ITAT, Pune.