S R Raghvir, Chennai V. TDS-CPC, Ghaziabad

ITA 195/CHNY/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 7464 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-07-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 15-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AROON PRASADJCITD R
• Assessee Lawyers: G SEETHARAMANC A
• Keywords: Principle of natural justice; Reasonable cause

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : CHENNAI . , ! '#$ % , BEFORE SHRI ABRAHAM P GEORGE, ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, JUDICIAL MEMBER ./ I.T.A.NOS.195, 196, 197 & 198/CHNY/2018 / ASSESSMENT YEARS : 2014-15,2014-15,2014-15 & 2014 -15 SHRI S.R.RAGHUVIR , NO.23,BALFOUR ROAD, KILPAUK, CHENNAI 60 0 010. VS. INCOME TAX OFFICER, NON-CORPORATE WARD 10(1), CHENNAI [PAN AAAPR 6061 J ] ( %& / APPELLANT) ( '(%& /RESPONDENT) / APPELLANT BY : MR.G.SEETHARAMAN,C.A. /RESPONDENT BY : MR.AROON PRASAD,JCIT,D.R ! ' #$% / DATE OF HEARING : 09 - 0 7 - 201 8 &' #$% / DATE OF PRONOUNCEMENT : 09 - 0 7 - 201 8 ) / O R D E R PER GEORGE MATHAN , JUDICIAL MEMBER ITA NOS.195 TO 198/CHNY/2018 ARE THE APPEALS FILED BY THE ASSESSEE AGAINST THE COMMON ORDER OF THE COMMISSION ER OF INCOME TAX (APPEALS)-12, CHENNAI, IN ITA NOS.01, 20 , 21 & 22/CIT(A)-12/2017-18 DATED 13.11.2017 FOR ASSESSMEN T YEAR 2015-16 RELATING TO BELATEDLY FILING QUARTERLY RETU RNS OF TDS, CONFIRMING THE LEVY OF LATE FILING FEE U/S.234E OF THE ACT MADE BY LD. ASSESSING OFFICER. 2. AS ALL THE APPEALS ARE RELATED TO THE SAME ASSE SSEE AND INTER-CONNECTED, ALL APPEALS ARE DISPOSED OFF BY TH IS COMMON ORDER. ITA NOS.195 TO 198/CHNY/18 MR.S.R.RAGHUVIR :- 2 -: 3. MR.G.SEETHARAMAN REPRESENTED ON BEHALF OF THE ASSESSEE AND MR.AROON PRASAD REPRESENTED ON BEHALF OF THE REVENUE. 4. IT WAS SUBMITTED BY LD.A.R THAT THE ASSESSEE HA D FILED THE REGULAR QUARTERLY STATEMENTS OF TDS FOR Q1, Q2, Q3 & Q4 FOR ASSESSMENT YEAR 2014-15 ON 01.03.2017. IT WAS A SUB MISSION THAT THE DUE DATES TO FILE THE RETURNS FOR THE ABOVE QUARTER S WERE 15.07.2014, 15.10.2014, 15.01.2015 AND 15.05.2015 RESPECTIVELY. LATE FEE HAD BEEN LEVIED ON THE ASSESSEE AS PER THE PROVISIONS O F THE SECTION 234E OF THE ACT. IT WAS A SUBMISSION THAT THE ASSESSEE HAD DEDUCTED THE TAXES AND REMITTED THE SAME BEFORE THE DUE DATE AND WAS FILING THE QUARTERLY RETURN STATEMENTS BEFORE THE DUE DATES FO R THE PAST SEVERAL YEARS AND THERE IS NO DEFAULT WHATSOEVER FOR THE FI NANCIAL YEAR 2014- 15; THE ASSESSEE HAD FORWARDED THE QUARTERLY RETURN S TO HIS AUTHORIZED REPRESENTATIVE OF ASSESSEE FOR FILING THE SAME ALON G WITH OTHER PAPERS. IT WAS A SUBMISSION THAT THE DELAY HAD TAKEN PLACE ON ACCOUNT OF FAILURE ON THE PART OF THE AUTHORIZED REPRESENTATIV E OF ASSESSEE. IT WAS A SUBMISSION THAT THE ASSESSEE DID NOT KNOW OF NON-FILING BY THE REPRESENTATIVE AND IMMEDIATELY, WHEN IT WAS BROUGHT TO THE ATTENTION, THE ASSESSEE HAD FILED THE RETURNS. IT WAS SUBMITT ED BY THE LD.A.R THAT THE LEVY U/S.234E OF THE ACT WAS NOT LIABLE TO BE M ADE. IT WAS A SUBMISSION THAT LD.CIT(A) HAD CONFIRMED THE LEVY OF PENALTY ON THE GROUND THAT IT WAS A STATUTORY FEE ITA NOS.195 TO 198/CHNY/18 MR.S.R.RAGHUVIR :- 3 -: 5. IN REPLY, LD.D.R VEHEMENTLY SUPPORTED THE ORDER S OF LD. ASSESSING OFFICER AND THE LD.CIT(A) 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. A P ERUSAL OF THE PROVISIONS OF THE SECTION 234E OF THE ACT SHOWS THA T UNDER THE PROVISIONS OF THE SECTION 234E OF THE ACT, LEVY IS IN THE NATURE OF FEE FOR THE DEFAULT IN FURNISHING STATEMENTS AND THE SA ME IS AT THE RATE OF ` 200/- PER DAY DURING WHICH THE FAILURE CONTINUES SU BJECT TO A MAXIMUM OF THE ACTUAL AMOUNT OF TAX DEDUCTIBLE AND COLLECTABLE. SECTION 234E IS NOT IN THE NATURE OF COMPENSATION S UCH AS INTERESTS LEVIED UNDER SECTIONS 234A, 234B, 234C & 234D OF TH E ACT. THE LEVY OF THIS FEE UNDER THE PROVISIONS OF THE SECTION 234E O F THE ACT IS A STATUTORY LEVY FOR BREACH OF THE PROVISIONS OR NON- COMPLIANCE OF PARTICULAR PROVISION OF THE ACT. ONCE IT IS NOT IN THE NATURE OF COMPENSATION, THEN PRINCIPLES OF NATURAL JUSTICE WI LL COME INTO PLAY AND REASONABLE CAUSE WOULD BE AVAILABLE TO THE ASSESSEE TO EXPLAIN THE REASONS FOR THE DEFAULT. ADMITTEDLY, IF THE DEFAULT IS ON REASONABLE GROUNDS, THEN THE FEE IS NOT LEVIABLE. NATURAL JUST ICE REQUIRES THE READING OF THE REASONABLE CAUSE INTO THE SAID PROVI SIONS. THE ASSESSEE HEREIN ADMITTEDLY HAS BEEN FILING ITS RETURNS AND S TATEMENTS IN TIME FOR EARLIER AND FOR THE SUBSEQUENT YEARS, THIS IS ONLY TIME WHEN THERE HAS BEEN VIOLATION ON THE PART OF THE ASSESSEE. THE VIO LATION ADMITTEDLY IS NOT IN RESPECT OF DEDUCTION OF THE TDS OR THE PAYME NT OF THE SAME TO ITA NOS.195 TO 198/CHNY/18 MR.S.R.RAGHUVIR :- 4 -: THE GOVERNMENT ACCOUNT. THE DEFAULT IS IN RESPECT O F NON-SUBMISSION OF THE STATEMENTS OF THE SAME WITHIN THE PRESCRIBED TIME. THE ASSESSEE HAS ALSO EXPLAINED THE REASONS FOR THE DEF AULT ON ACCOUNT OF THE FAILURE ON THE PART OF THE ASSESSEE S REPRESEN TATIVE. THIS EXPLANATION GIVEN BY THE ASSESSEE HAS ALSO NOT BEEN FOUND TO BE FALSE. THIS BEING SO, WE ARE OF THE VIEW THAT THE CLAIM OF ASSESSEE IS LIABLE TO BE ACCEPTED AND THE FEE LEVIED U/S.234E IS LIABLE T O BE CANCELLED AND WE DO SO. 7. IN THE RESULT, ALL THE APPEALS OF THE ASSESSEE ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT AFTER CONCLUSION OF HEARING ON 09 TH JULY, 2018, AT CHENNAI. SD/ - SD/ - ( () . +,+ ) ( ABRAHAM P GEORGE) ! / ACCOUNTANT MEMBER ( % ) (GEORGE MATHAN) * ! / JUDICIAL MEMBER . ' / CHENNAI / / DATED: 09 TH JULY, 2018. K S SUNDARAM 0 #12 3 2# / COPY TO: 1 . / APPELLANT 3. ! 4# () / CIT(A) 5. 267 #8 / DR 2. / RESPONDENT 4. ! 4# / CIT 6. 79 :' / GF