Tranz India Corporation, Coimbatore V. ITO TDS Ward, Coimbatore

ITA 2425/CHNY/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 5645 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-12-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 04-10-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S NATARAJAN
• Assessee Lawyers: S SRIDHAR
• Section: 6

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: CHENNAI . , ' , % & BEFORE SHRI ABRAHAM P.GEORGE, ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, JUDICIAL MEMBER ./ ITA NOS.2421 TO 2425/MDS/2017 %' ' /ASSESSMENT YEAR: 2014-15 M/S.TRANZ INDIA CORPORATION, 204, 2 ND FLOOR, SANJAY RAAJ TOWERS, 100 FEET ROAD, TATABAD, COIMBATORE-641 012. VS. THE INCOME TAX OFFICER, TDS WARD, 1510, MAYFLOWER MIDCITY, TRICHY ROAD, COIMBATORE. [PAN: AAFFT 2020 A ] ( ( /APPELLANT) ( )*( /RESPONDENT) ./ ITA NOS.2470 TO 2475/MDS/2017 %' ' /ASSESSMENT YEAR: 2013-14 SMT.RAMACHANDRAN VICHITHRA, 189/239, PERUR MAIN ROAD, KUMARAPALAYAM POST, COIMBATORE-641 026. VS. THE INCOME TAX OFFICER, TDS WARD, 1510, MAYFLOWER MIDCITY, TRICHY ROAD, COIMBATORE. [PAN: AFJPR 2252 R ] ( ( /APPELLANT) ( )*( /RESPONDENT) ./ ITA NO.2463/MDS/2017 %' ' /ASSESSMENT YEAR: 2013-14 M/S.CR & ASSOCIATES, 4/2A, CHINNA NEELI THOPPU, SIRUVANI ROAD, ARAI THOTTI, THEETHIPALAYM POST, COIMBATORE-641 010. VS. THE INCOME TAX OFFICER, TDS WARD, 1510, MAYFLOWER MIDCITY, TRICHY ROAD, COIMBATORE. [PAN: AAFFC 3732 J ] ( ( /APPELLANT) ( )*( /RESPONDENT) ITA NOS.2421-2425/MDS/2017 ITA NOS.2470-2475/MDS/2017 ITA NO.2463/MDS/2017 ITA NOS.2464 & 2465/MDS/2017 ITA NOS.2466 & 2467/MDS/2017 ITA NOS.2468 & 2469/MDS/2017 :- 2 -: ./ ITA NOS.2464 & 2465/MDS/2017 %' ' /ASSESSMENT YEAR: 2013-14 M/S.K.R. HEALTHCARE (P) LTD., 93-F, K.R.HOSPITAL, METTUPALAYAM ROAD, PERIYANAICKENPALAYAM, COIMBATORE-641 020. VS. THE INCOME TAX OFFICER, TDS WARD, 1510, MAYFLOWER MIDCITY, TRICHY ROAD, COIMBATORE. [PAN: AABCK 9628 A ] ( ( /APPELLANT) ( )*( /RESPONDENT) ./ ITA NOS.2466 & 2467/MDS/2017 %' ' /ASSESSMENT YEAR: 2013-14 M/S.K.R. PHARMACY, 93-F, K.R.HOSPITAL, METTUPALAYAM ROAD, PERIYANAICKENPALAYAM, COIMBATORE-641 020. VS. THE INCOME TAX OFFICER, TDS WARD, 1510, MAYFLOWER MIDCITY, TRICHY ROAD, COIMBATORE. [PAN: AA EFK 7710 K ] ( ( /APPELLANT) ( )*( /RESPONDENT) ./ ITA NOS.2468 & 2469/MDS/2017 %' ' /ASSESSMENT YEAR: 2013-14 SHRI R.V.RAMACHANDRAN, 189/239, PERUR MAIN ROAD, KUMARAPALAYAM (POST), COIMBATORE-641 026. VS. THE INCOME TAX OFFICER, TDS WARD, 1510, MAYFLOWER MIDCITY, TRICHY ROAD, COIMBATORE. [PAN: A FJPR 2246 D ] ( ( /APPELLANT) ( )*( /RESPONDENT) ( + / APPELLANT BY : MR.S.SRIDHAR, ADV. )*( + /RESPONDENT BY : MR.S.NATARAJAN, JCIT + /DATE OF HEARING : 21.12.2017 + /DATE OF PRONOUNCEMENT : 21.12.2017 ITA NOS.2421-2425/MDS/2017 ITA NOS.2470-2475/MDS/2017 ITA NO.2463/MDS/2017 ITA NOS.2464 & 2465/MDS/2017 ITA NOS.2466 & 2467/MDS/2017 ITA NOS.2468 & 2469/MDS/2017 :- 3 -: / O R D E R PER BENCH : ITA NOS.2421, 2422, 2423, 2424 & 2425/MDS/2017 AR E THE APPEALS FILED BY THE ASSESSEE M/S.TRANZ INDIA CORPORATION, AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-2, COIMBATORE, IN ITA NO.23/16- 17, ITA NO.22/16-17, ITA NO.19/16-17, ITA NO.20/16- 17 & ITA NO.21/16- 17, RESPECTIVELY, DATED 31.07.2017 FOR THE AY 2014- 15. 2. ITA NOS.2470, 2471, 2472, 2473, 2474 & 2475/MDS /2017 ARE THE APPEALS FILED BY THE ASSESSEE SMT.RAMACHANDRAN VICH ITHRA, AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-2 , COIMBATORE, IN ITA NO.07/16-17, ITA NO.08/16-17, ITA NO.09/16-17, ITA NO.10/16-17, ITA NO.11/16-17 & ITA NO.12/16-17, RESPECTIVELY, DATED 31.07.2017 FOR THE AY 2013-14. 3. ITA NO.2463/MDS/2017 IS AN APPEAL FILED BY THE A SSESSEE M/S.CR & ASSOCIATES, AGAINST THE ORDER OF THE COMMISSIONER O F INCOME TAX (APPEALS)-2, COIMBATORE, IN ITA NO.33/16-17 DATED 3 0.08.2017 FOR THE AY 2013-14. 4. ITA NOS.2464 & 2465/MDS/2017 ARE THE APPEALS FIL ED BY THE ASSESSEE M/S.K.R.HEALTHCARE (P) LTD., AGAINST THE O RDER OF THE ITA NOS.2421-2425/MDS/2017 ITA NOS.2470-2475/MDS/2017 ITA NO.2463/MDS/2017 ITA NOS.2464 & 2465/MDS/2017 ITA NOS.2466 & 2467/MDS/2017 ITA NOS.2468 & 2469/MDS/2017 :- 4 -: COMMISSIONER OF INCOME TAX (APPEALS)-2, COIMBATORE, IN ITA NO.76/16- 17 & ITA NO.75/16-17 DATED 31.07.2017 FOR THE AY 20 13-14. 5. ITA NOS.2466 & 2467/MDS/2017 ARE THE APPEALS FIL ED BY THE ASSESSEE M/S.K.R. PHARMACY, AGAINST THE ORDER OF TH E COMMISSIONER OF INCOME TAX (APPEALS)-2, COIMBATORE, IN ITA NO.73/16 -17 & ITA NO.74/16-17 DATED 31.07.2017 FOR THE AY 2013-14. 6. ITA NOS.2468 & 2469/MDS/2017 ARE THE APPEALS FIL ED BY THE ASSESSEE SHRI R.V.RAMACHANDRAN, AGAINST THE ORDER O F THE COMMISSIONER OF INCOME TAX (APPEALS)-2, COIMBATORE, IN ITA NO.05 /16-17 & ITA NO.06/16-17 DATED 31.07.2017 FOR THE AY 2013-14. 7. AS ALL THE APPEALS ARE ON IDENTICAL ISSUES AND T HEY ARE DISPOSED OFF BY THIS COMMON ORDER. 8. SHRI S.N.NATARAJAN, JCIT REPRESENTED ON BEHALF O F THE REVENUE AND SHRI S.SRIDHAR, ADV., REPRESENTED ON BEHALF OF THE ASSESSEE. 9. IT WAS SUBMITTED BY THE LD.AR THAT ALL THE APPEA LS WERE AGAINST THE LEVY OF LATE FILING FEE IN RESPECT OF THE QUARTERLY TDS SETTLEMENTS. IT WAS A SUBMISSION THAT THE LATE FILING FEE HAS BEEN LEVIED U/S.234E OF THE IT ACT. ITA NOS.2421-2425/MDS/2017 ITA NOS.2470-2475/MDS/2017 ITA NO.2463/MDS/2017 ITA NOS.2464 & 2465/MDS/2017 ITA NOS.2466 & 2467/MDS/2017 ITA NOS.2468 & 2469/MDS/2017 :- 5 -: IT WAS A SUBMISSION THAT THE QUARTERLY TDS STATEMEN TS HAD BEEN FILED, ADMITTEDLY, BEYOND THE TIME LIMIT PRESCRIBED UNDER THE ACT AND THE SAME TO BE PROCESSED BY THE CPC-TDS, GHAZIABAD, U/S.200A , WHEREIN THE LATE FILING FEE U/S.234E WAS LEVIED AND DEMANDED FROM TH E ASSESSEE. IT WAS A SUBMISSION THAT AGGRIEVED WITH THE LEVY, THE ASSESS EES HAD FILED THE APPEALS BEFORE THE LD.CIT(A) WHO HAD DELETED THE SA ME BY FOLLOWING THE DECISION OF THE ITAT CHENNAI BENCHES IN THE CASE OF SMT.G.INDRANI AND OTHERS IN ITA NOS.1019 TO 1021/MDS/2015 DATED 10.07 .2015 WHEREIN IT HAD BEEN HELD THAT PRIOR TO 01.06.2015, THERE WAS N O ENABLING PROVISION IN SEC.200A FOR MAKING SUCH ADJUSTMENT OF LEVYING FEES U/S.234E AND ACCORDINGLY SET ASIDE THE INTIMATIONS U/S.200A ISSU ED IN THOSE CASES. IT WAS A SUBMISSION THAT HOWEVER, WHILE DOING SO, ITAT HELD THAT IT WAS OPEN TO THE AO TO PASS SEPARATE ORDERS U/S.234E OF THE A CT FOR LEVYING THIS FEE IN ACCORDANCE WITH LAW. IN CONSONANCE WITH THESE O BSERVATIONS OF THE ITAT, THE LD.CIT(A) HAD ALSO MADE A REMARK WHILE DE LETING THE DEMAND OF FEE U/S.234E RAISED THROUGH THE INTIMATION U/S.200A THAT THE AO IS AT LIBERTY TO PASS SEPARATE ORDER FOR LEVYING FEE U/S. 234E AS PER PROVISIONS OF LAW. IT WAS A SUBMISSION THAT CONSEQUENTLY, THE AO HAD LEVIED THE FEE U/S.234E BY PASSING THE RELEVANT ORDERS DATED 28.03 .2016. HOWEVER, THE AO HAS NOT SPECIFIED THE PROVISION UNDER WHICH HE H AS BEEN ENABLED TO PASS THE ORDER LEVYING FEE U/S.234E OF THE ACT. IT WAS A SUBMISSION THAT THE LEVY OF FEE U/S.234E MAY BE MADE ONLY IN THE EN ABLING ORDER PASSED ITA NOS.2421-2425/MDS/2017 ITA NOS.2470-2475/MDS/2017 ITA NO.2463/MDS/2017 ITA NOS.2464 & 2465/MDS/2017 ITA NOS.2466 & 2467/MDS/2017 ITA NOS.2468 & 2469/MDS/2017 :- 6 -: U/S.200A AND AS IT HAD BEEN RIGHTLY HELD THAT THERE WAS NO ENABLING PROVISION IN SEC.200A PRIOR TO 01.06.2015 FOR SUCH ADJUSTMENT OF THE LEVY OF FEE U/S.234E, THE LEVY OF FEE AS MADE BY THE AO WAS LIABLE TO BE DELETED. 10. IN REPLY, THE LD.DR VEHEMENTLY SUPPORTED THE OR DER OF THE AO AND THE LD.CIT(A). IT WAS SUBMITTED BY THE LD.AR THAT THE LD.CIT(A) WHEN ADJUDICATING THE ISSUE HAD FOLLOWED THE DECISION OF THE HONBLE GUJARAT HIGH COURT IN THE CASE OF RAJESH KOURANI V. UNION B ANK OF INDIA REPORTED IN [2017] 83 TAXMANN.COM 137 TO HOLD THAT AS THE QU ESTION AS TO WHETHER THE LEVY OF FEE U/S.234E CAN BE LEVIED OTHERWISE TH ROUGH AN INTIMATION U/S.200A WAS NOT DEALT WITH BY THE HONBLE KARNATAK A HIGH COURT IN THE CASE OF FATHERAJ SINGHVI V. UNION BANK OF INDIA REP ORTED IN [2016] 73 TAXMANN.COM 252. 11. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. ONCE THE ASSESSEES FILE THEIR QUARTERLY TDS STATEMENTS IN FORM NO.26Q THEN THE SAME IS TO BE PROCESSED U/S.200A. THIS IS BECAUSE OF THE WORDS OF SEC.200A(I) IS WHERE A STATEMENT TAX DEDUCTION AT SOURCE OR CORRE CTION STATEMENT HAD BEEN MADE BY DEDUCTING ANY SUM U/S.200, SUCH STATEM ENT SHALL BE PROCESSED IN THE FOLLOWING MANNER. THE LATE FEE H AS BEEN PROVIDED IN SEC.234E. SEC.234E PROVIDES FOR THE COMPUTATION OF THE LATE FEE. A LATE ITA NOS.2421-2425/MDS/2017 ITA NOS.2470-2475/MDS/2017 ITA NO.2463/MDS/2017 ITA NOS.2464 & 2465/MDS/2017 ITA NOS.2466 & 2467/MDS/2017 ITA NOS.2468 & 2469/MDS/2017 :- 7 -: FEE COMPUTED U/S.234E CAN BE LEVIED ONLY ON THE PRO CESSING OF THE STATEMENTS OF THE TAX DEDUCTED AT SOURCE U/S.200A I N SO FAR AS SEC.200A(1)(C) PROVIDES FOR SUCH LATE FEE TO BE INC LUDED IN THE PROCESSING. THUS, IT BECOMES CLEAR THAT NO ORDER U/S.234E CAN B E PASSED INDEPENDENTLY. THE LATE FEE CAN BE LEVIED ONLY AFT ER PROCESSING THE TDS STATEMENTS FURNISHED. THIS BEING SO, WE ARE OF THE VIEW THAT THE LEVY OF INTEREST U/S.234E IN THE ORDER DATED 28.03.2016 AS MADE BY THE AO AND AS CONFIRMED BY THE LD.CIT(A) IS UNSUSTAINABLE AND CONSEQUENTLY STANDS DELETED. 12. IN THE RESULT, THE APPEALS FILED BY THE ASSESSE ES IN ITA NOS.2421 TO 2425/MDS/2017, ITA NOS.2470-2475/MDS/2017, ITA NO.2 463/MDS/2017, ITA NOS.2464 & 2465/MDS/2017, ITA NOS.2466 & 2467/M DS/2017 AND ITA NOS.2468 & 2469/MDS/2017 STAND ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON DECEMBER 21, 2017, AT CHENNAI. SD/- SD/- ( . ) ( ABRAHAM P.GEORGE ) /ACCOUNTANT MEMBER ( ' ) (GEORGE MATHAN) % /JUDICIAL MEMBER ITA NOS.2421-2425/MDS/2017 ITA NOS.2470-2475/MDS/2017 ITA NO.2463/MDS/2017 ITA NOS.2464 & 2465/MDS/2017 ITA NOS.2466 & 2467/MDS/2017 ITA NOS.2468 & 2469/MDS/2017 :- 8 -: /CHENNAI, 2 /DATED: DECEMBER 21, 2017. TLN + )%34 54 /COPY TO: 1. ( /APPELLANT 4. 6 /CIT 2. )*( /RESPONDENT 5. 4 )%% /DR 3. 6 ( ) /CIT(A) 6. ' /GF