Punuru Nagireddy, Guntur V. THE DCIT,

ITA 22/VIZ/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 6406 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 year(s) 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-03-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 23-03-2017
• Assessment Year: 2013-2014
• Appeal Filed On: 05-01-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R S ARAVINDAKSHAN
• Assessee Lawyers: N O N E

Judgement Text

ITA NOS.7, 8, 17, 18 & 22/VIZAG/2016 NAVEEN KUMAR HANJARIMAL, VIJAYAWADA 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . , $ BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI G. MANJUNATHA, ACCOUNTANT MEMBER ./I.T.A.NOS.7&8/VIZAG/2016 ( / ASSESSMENT YEAR: 2013-14) NAVEEN KUMAR HANJARIMAL VIJAYAWADA CIT(A) - 2, GUNTUR [PAN NO. AAJPH3351E ] ( % / APPELLANT) ( &'% / RESPONDENT) ./I.T.A.NOS.17&18/VIZAG/2016 ( / ASSESSMENT YEAR: 2013-14 & 2014-15) NAVEEN MEMORIAL JUNIOR COLLEGE, GUNTUR CIT(A) - 2, GUNTUR [PAN NO.HYDMO3343E] ( % / APPELLANT) ( &'% / RESPONDENT) ./I.T.A.NO.22/VIZAG/2016 ( / ASSESSMENT YEAR: 2013-14) PUNURU NAGIREDDY, GUNTUR DCIT, CPC(TDS) GHAZIABAD [PAN NO.HYDNO1869A] ( % / APPELLANT) ( &'% / RESPONDENT) ITA NOS.7, 8, 17, 18 & 22/VIZAG/2016 NAVEEN KUMAR HANJARIMAL, VIJAYAWADA 2 / APPELLANT BY : N O N E / RESPONDENT BY : SHRI R.S. ARAVINDAKSHAN, DR / DATE OF HEARING : 23.03.2017 / DATE OF PRONOUNCEMENT : 23.03.2017 / O R D E R PER BENCH: THESE FIVE APPEALS FILED BY DIFFERENT ASSESSEES AR E DIRECTED AGAINST SEPARATE, BUT IDENTICAL ORDERS OF THE CIT(A )-2, GUNTUR FOR THE ASSESSMENT YEARS 2013-14 & 2014-15. SINCE, THE FAC TS ARE IDENTICAL AND ISSUE IS COMMON, IT IS CLUBBED, HEARD TOGETHER AND DISPOSED-OFF BY WAY OF THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. THE LIMITED ISSUE CAME UP FOR OUR CONSIDERATION FROM THESE APPEALS IS WITH REGARD TO LEVY OF FEE U/S 234E OF T HE INCOME TAX ACT, 1961 (HEREINAFTER CALLED AS 'THE ACT') FOR LATE FI LING OF QUARTERLY E-TDS RETURN U/S 200(3) OF THE ACT. 3. THE BRIEF FACTS OF THE CASE EXTRACTED FROM ITA N O.17/VIZAG/2016 ARE THAT THE ASSESSEE HAS FILED QUARTERLY E-TDS RET URNS IN PRESCRIBED FORMS FOR THE RESPECTIVE QUARTERS IN RESPECT OF TAX DEDUCTED AT SOURCE UNDER VARIOUS TDS PROVISIONS OF THE ACT. THESE QUA RTERLY RETURNS HAVE BEEN FILED BELATEDLY AFTER THE DUE DATE SPECIFIED U /S 200(3) OF THE ACT ITA NOS.7, 8, 17, 18 & 22/VIZAG/2016 NAVEEN KUMAR HANJARIMAL, VIJAYAWADA 3 AND RULE 31A OF THE INCOME TAX RULES, 1962. THESE QUARTERLY RETURNS HAVE BEEN PROCESSED BY THE TDS, CPC, AAYAKAR BHAVAN , SECTOR-3, VAISHALI, GHAZIABAD, UP AND INTIMATION U/S 200A OF THE ACT, HAVE BEEN ISSUED DEMANDING LATE FILING FEE PAYABLE U/S 234E O F THE ACT. 4. AGGRIEVED BY THE INTIMATION ISSUED BY THE TDS, C PC, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A). BEFORE THE CIT(A), THE ASSESSEE CONTENDED THAT THE DEMAND RAISED BY THE CPC, TDS IN RESPECT OF LATE FILING FEE U/S 234E OF THE ACT, CANNOT BE RAISED BY WAY OF PROCESSING OF TDS STATEMENTS, BECAUSE PROVISIONS OF SECTION 200A OF THE ACT, DOES NOT COVER DEFAULT IN PAYMENT OF LATE FEE U/S 234E OF TH E ACT. AS PER THE PROVISIONS OF SECTION 200A OF THE ACT, TDS, CPC, SH ALL MAKE ADJUSTMENTS FOR ANY ARITHMETICAL ERRORS IN THE STATEMENTS OR AN INCORRECT CLAIM APPARENT FROM ANY INFORMATION IN THE STATEMENT AND ALSO THE INTEREST, IF ANY SHALL BE COMPUTED ON THE BASIS OF THE SUMS DEDU CTIBLE AS COMPUTED IN THE STATEMENT. HOWEVER, THERE IS NO PROVISION U /S 200A OF THE ACT FOR COMPUTATION OF LATE FEE, IF ANY IN ACCORDANCE WITH THE PROVISIONS OF SECTION 234E OF THE ACT, BEFORE INSERTION OF SUB-CL AUSE (C) TO THE STATUTE BY THE FINANCE ACT, 2015 W.E.F. 1.6.2016. IN THE A BSENCE OF ANY ENABLING PROVISION IN THE MACHINERY PROVISION OF SE CTION 200A OF THE ACT, ITA NOS.7, 8, 17, 18 & 22/VIZAG/2016 NAVEEN KUMAR HANJARIMAL, VIJAYAWADA 4 DEMAND CANNOT BE RAISED TOWARDS LATE FILING FEE U/ S 234E OF THE ACT FOR BELATED FILING OF QUARTERLY E-TDS RETURNS. 5. CIT(A) AFTER CONSIDERING THE EXPLANATION OF THE ASSESSEE AND ALSO AFTER ANALYSIS OF THE PROVISIONS OF SECTION 200A & 234E OF THE ACT AND FURTHER BY RELIED UPON CERTAIN JUDICIAL PRECEDENTS INCLUDING THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF ALOM EXTRUS IONS LTD. (2009) 185 TAXMAN 46 (SC) AND HONBLE DELHI HIGH COURT IN THE CASE OF RAJEENDER KUMAR VS. CIT, 362 ITR 241, HELD THAT THO UGH SUB-CLAUSE (C) INSERTED FROM 1.6.2015, IT BEING DECLARATORY AND CR EATIVE IN NATURE, CAN BE APPLIED RETROSPECTIVELY, ACCORDINGLY, THE PROVIS IONS OF SECTION 234E OF THE ACT BEING THE MACHINERY SECTION IS APPLICABLE F OR LEVY OF LATE FEE FOR BELATED FILING OF TDS STATEMENTS, EVEN BEFORE INSER TION OF SUB-CLAUSE (C) IN SECTION 200A OF THE ACT, BY THE FINANCE ACT, 201 5 W.E.F. 1.6.2015. AGGRIEVED BY THE CIT(A) ORDER, THE ASSESSEE IS IN A PPEAL BEFORE US. 6. NONE APPEARED FOR THE ASSESSEES. WE HAVE HEARD T HE LD. D.R. LD. D.R. SUBMITTED THAT THE ISSUE INVOLVED IN THESE APPEALS IS COVERED BY THE DECISION OF ITAT, VISAKHAPATNAM IN THE CASE OF CHILLAPALLI EXPORTS PVT. LTD. VS. ITO (TDS), TDS WARD-1, GUNTUR IN ITA NO.179 TO 182/VIZAG/2016 DATED 17.2.2017. WE FIND THAT THE C OORDINATE BENCH OF THIS TRIBUNAL, WHEREIN THE JUDICIAL MEMBER AND ACCO UNTANT MEMBER ARE ITA NOS.7, 8, 17, 18 & 22/VIZAG/2016 NAVEEN KUMAR HANJARIMAL, VIJAYAWADA 5 PARTIES TO THE JUDGEMENT HELD THAT IN THE ABSENCE O F ENABLING PROVISION IN SECTION 200A OF THE ACT, BEFORE INSERTION OF SUB -CLAUSE (C) INTO SECTION 200A OF THE ACT, BY THE FINANCE ACT, 2015 W.E.F. 1. 6.2015, NO ADJUSTMENTS CAN BE MADE TOWARDS LATE FEE PAYABLE U/ S 234E OF THE ACT, FOR BELATED FILING OF TDS STATEMENTS U/S 200(3) OF THE ACT, WHILE ISSUING INTIMATION U/S 200A OF THE ACT, FOR PROCESSING TDS STATEMENTS FILED AND PROCESSED FOR THE ASSESSMENT YEARS PRIOR TO 1.6.201 5. THE RELEVANT PORTION OF THE ORDER IS EXTRACTED BELOW: 10. IN THIS VIEW OF THE MATTER AND ALSO RESPECTFULL Y FOLLOWING THE RATIOS OF THE JUDGEMENTS DISCUSSED ABOVE, WE ARE OF THE V IEW THAT THERE IS NO ENABLING PROVISION IN SECTION 200A OF THE ACT, BEFO RE INSERTION OF SUB- CLAUSE (C) INTO SECTION 200A OF THE ACT, BY THE FIN ANCE ACT, 2015 W.E.F. 1.6.2015 AND HENCE, NO ADJUSTMENTS CAN BE MADE TOWA RDS LATE FEE PAYABLE U/S 234E OF THE ACT, FOR BELATED FILING OF TDS STATEMENTS U/S 200(3) OF THE ACT, WHILE ISSUING INTIMATION U/S 200 A OF THE ACT, FOR PROCESSING TDS STATEMENTS FILED AND PROCESSED FOR T HE ASSESSMENT YEARS PRIOR TO 1.6.2015. IN THESE CASES, ADMITTEDLY ALL T HE TDS RETURNS HAS BEEN FILED AND PROCESSED BY THE TDS, CPC BEFORE 1.6.2015 . THEREFORE, WE ARE OF THE VIEW THAT FEE PAYABLE U/S 234E OF THE ACT, C ANNOT BE LEVIED WHILE PROCESSING TDS STATEMENTS U/S 200A OF THE ACT. THE CIT(A), WITHOUT APPRECIATING THE FACTS SIMPLY UPHELD THE ACTION OF THE A.O. IN LEVYING LATE FEE U/S 234E OF THE ACT. HENCE, WE REVERSE THE CIT (A) ORDER AND DIRECT THE A.O. TO DELETE ADDITIONS MADE TOWARDS LATE FEE U/S 234E OF THE ACT. 7. IN THIS VIEW OF THE MATTER AND ALSO RESPECTFULLY FOLLOWING THE DECISION OF COORDINATE BENCH, IN THE CASE OF M/S. C HILLAPALLI EXPORTS PVT. LTD. ITO (TDS), TDS WARD-1, GUNTUR (SUPRA), WE DIREC T THE A.O. TO DELETE ADDITIONS MADE TOWARDS LATE FILING FEE PAYAB LE U/S 234E OF THE ACT FOR BELATED FILING OF TDS STATEMENTS U/S 200(3) OF THE ACT. ITA NOS.7, 8, 17, 18 & 22/VIZAG/2016 NAVEEN KUMAR HANJARIMAL, VIJAYAWADA 6 8. IN THE RESULT, THE APPEALS FILED BY THE ASSESSEE S IN ITA NOS.7, 8, 17, 18 & 22/VIZAG/2016 ARE ALLOWED. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 23 RD MAR17. SD/- SD/- ( . ) ( . ) (V. DURGA RAO) (G. MANJUNATHA) /JUDICIAL MEMBER /ACCOUNTANT MEMBER # /VISAKHAPATNAM: ' /DATED : 23.03.2017 VG/SPS )# *# /COPY OF THE ORDER FORWARDED TO:- 1. / THE APPELLANT NAVEEN KUMAR HANJARIMAL, PROP. O F DHANLAKSHMI GOLD HOUSE, 21-20-6, 1 ST FLOOR, JAIN TEMPLE STREET, NEAR FLOWER MARKET, GUN TUR. 2. / THE APPELLANT M/S. N. KOTESWARA RAO & CO. CHAR TERED ACCOUNTANTS, D.NO.23-6-17/2, PATNAM BAZAR, GUNTUR-522 003. 3. / THE RESPONDENT THE CIT(A), GUNTUR 4. / THE RESPONDENT THE DCIT, CENTRALIZED PROCESSIN G CELL (TDS), GHAZIABAD 5. + / THE CIT, TDS, VIJAYAWADA 6. + ( ) / THE CIT (A)-2, GUNTUR 7. # . , . , # / DR, ITAT, VISAKHAPATNAM 8 . / GUARD FILE / BY ORDER // TRUE COPY // SR. PRIVATE SECRETARY ITAT, VISAKHAPATNAM