V3 Engineers Pvt Ltd , Bangalore V. Income Tax Officer Ward-7(1)(3), Bangalore

ITA 2362/BANG/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 6054 (ITAT-BANGALORE)
• Duration Of Justice: 8 month(s) 21 day(s)
• Appeal Type: Income Tax (Transfer Pricing) Appeal
• Pronouncement Date: 01-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 27-02-2019
• Assessment Year: 2015-2016
• Appeal Filed On: 10-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: TDS; Set aside
• Section: 234E; 200A

Judgement Text

ITA NOS.2359 TO 2362/BANG/2018 PAGE 10 OF 12 FOR TESTING THE CONSTITUTIONAL VALIDITY OF SECTION 234E WOULD BE RENDERED AS AN ACADEMIC EXERCISE BECAUSE THERE WOULD NOT BE ANY CAUSE ON THE PART OF THE PETITIONERS TO CONTINUE TO MAINTAIN THE CHALLENGE TO CONSTITUTIONAL VALIDITY UNDER SECTION 234E OF THE ACT. AT THIS STAGE, VE MAY ALSO RECORD THAT THE LEARNED COUNSELS APPEARING FOR THE APPELLANT HAD ALSO DECLARED THAT IF THE IMPUGNED NOTICES UNDER SECTION 200A ARE SET ASIDE, SO FAR AS IT RELATES TO COMPUTATION AND INTIMATION FOR PAYMENT OF FEE UNDER SECTION 234E, THE APPELLANT-PETITIONERS WOULD NOT PRESS THE CHALLENGE TO THE CONSTITUTIONAL VALIDITY OF SECTION 234E OF THE ACT. BUT, THEY SUBMITTED THAT THE QUESTION OF CONSTITUTIONAL VALIDITY OF SECTION 234E RR.AY BE KEPT OPEN TO BE CONSIDERED BY THE DIVISION BENCH AND THE JUDGMENT OF THE LEARNED SINGLE JUDGE MAY NOT CONCLUDE THE CONSTITUTIONAL VALIDITY OF SECTION 234E OF THE ACT. 26. UNDER THESE CIRCUMSTANCES ; WE FIND THAT NO FURTHER DISCUSSION WOULD BE REQUIRED FOR EXAMINING THE CONSTITUTIONAL VALIDITY OF SECTION 234E OF THE ACT. SAVE AND EXCEPT TO OBSERVE THAT THE QUESTION OF CONSTITUTIONAL VALIDITY OF SECTION 234E OF THE ACT BEFORE THE DIVISION BENCH OF THIS COURT SHALL REMAIN OPEN AND SHALL NOT BE TREATED, AS CONCLUDED. 27. IN VIEW OF THE AFORESAID OBSERVATIONS AND DISCUSSION, THE IMPUGNED NOTICES UNDER SECTION 200A OF THE ACT FOR COMPUTATION AND INTIMATION FOR PAYMENT OF FEE UNDER SECTION 234E AS THEY RELATE TO FOR THE PERIOD OF THE TAX DEDUCTED PRIOR TO 1.6.2015 ARE SET ASIDE. IT IS CLARIFIED THAT THE PRESENT JUDGMENT WOULD NOT BE INTERPRETED TO MEAN THAT EVEN IF THE PAYMENT OF THE FEES UNDER SECTION 234E ALREADY MADE AS PER DEMAND/INTIMATION UNDER SECTION 200A OF THE ACT FOR THE TDS FOR THE PERIOD PRIOR TO 01.04.2015 IS PERMITTED TO BE REOPENED FOR CLAIMING REFUND. THE ICE-77NENT WILL HAVE PROSPECTIVE EFFECT ACCORDINGLY. IT IS FURTHER OBSERVED THAT THE QUESTION OF CONSTITUTIONAL VALIDITY OF SECTION 234E SHALL REMAIN OPEN TO BE CONSIDERED BY THE DIVISION BENCH AND SNAIL NOT GET CONCLUDED BY THE ORDER OF THE LEARNED SINGLE JUDGE. 5.3.3 CONSIDERING THE ABOVE DECISION OF THE HONBLE HIGH COURT OF JUDICATURE IN THE CASE OF FATHERAJ SINGHVI AND OTHERS VS. UNION OF INDIA (SUPRA), IT PRIMA FACIE APPEARS THAT THE ASSESSEE HAS A FAVOURABLE CASE ON MERITS. WHEN THERE IS A DECISION OF THE JURISDICTIONAL HIGH COURT, JUDICIAL DISCIPLINE AND PROPRIETY REQUIRES THAT WE ARE DUTY BOUND TO FOLLOW THE SAME