Millenium Tooling, Kolhapur V. Deputy Commissioner of Income tax,

ITA 2891/PUN/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 6883 (ITAT-PUNE)
• Duration Of Justice: 2 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-03-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 19-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Recovery proceedings; Retrospective amendment; Right to appeal
• Section: 6; 10; 154; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE . . , ! , # $ BEFORE SHRI R.K. PANDA, AM AND SHRI VIKAS AWASTHY, JM SL. NO. ITA NO(S). NAME OF APPELLANT NAME OF RESPONDENT ASST. YEAR QUA RTER FORM 1 2384/PUN/2016 M/S. CEM ELECTROMECH PRIVATE LIMITED, S.NO.15/16, PAWAR SHED, NEAR SAVALI DHABA NANDED VILLAGE, OFF SINHAGAD ROAD, PUNE 411 041 PAN : AAECC4991M DCIT, CPC(TDS), GHAZIABAD, UP 2013-14 QR-4 24Q 2-4 2539 TO 2541/PUN/2016 THE QUALITY IRON & STEEL WORKS PVT. LTD., 413/1, M.B.LOHIA MARG, GADMUDSHINGI, GANDHINAGAR, KOLHAPUR. PAN : AAACT6697H DCIT, CPC(TDS), GHAZIABAD, UP 2014-15 2014-15 2013-14 QR-1 QR-2 QR-4 24Q 24Q 24Q 5-7 2718 TO 2720/PUN/2016 KEDAR ASHOK GUNE, PLOT NO.296, SUNDARAM R.K. NAGAR SOCIETY NO.5, KOLHAPUR-416013 PAN : ABGPG2512G DCIT, CPC(TDS), GHAZIABAD, UP 2015-16 2015-16 2015-16 QR-1 QR-2 QR-3 26Q 26Q 26Q 8 2851/PUN/2016 CHAUGULE PATIL CONSULTANTS, SHARADA HOUSING SOCIETY, KUPWAD ROAD, SANGLI 416415 MAHARASHTRA PAN :AABCC7169A DCIT, CPC(TDS), GHAZIABAD, UP 2013-14 QR-4 24Q 9 TO 11 1302 TO 1304/PUN/2015 SANJAY GARBAD SONJE, 8, SUMMET APARTMENT, MAHATMA NAGAR, NASHIK 422007 PAN :AMCPS2784B DCIT, CPC(TDS), GHAZIABAD, UP 2013-14 2013-14 2013-14 QR-2 QR-3 QR-4 26Q 26Q 26Q 12 1465/PUN/2015 F.K.BHATEWARA (MILL DIVISION), 437/38, RAVIWARPETH, NASHIK 422 001 PAN :AAAFF5551F DCIT, CPC(TDS), GHAZIABAD, UP 2013-14 QR-4 26Q 13 1753/PUN/2016 NATIONAL SALES AND SERVICES, D-12, KUMAR CLASSICS, NEAR POLICE WORKSHOP, AUNDH, PUNE 411007, MAHARASHTRA PAN :AAAFN9589R DCIT, CPC(TDS), GHAZIABAD, UP 2013-14 QR-4 26Q 14 1765/PUN/2016 RELIABLE ENTERPRISES, 29, SHIVKRUPA, 630, NARAYANPETH, PUNE 411030 MAHARASHTRA AABFR4614A DCIT, CPC(TDS), GHAZIABAD, UP 2013-14 QR-4 26Q 15 1766/PUN/2016 DATUM MARKETING, 135/136, FLAT NO.101, RUNWAL SANIDHYA SOCIETY, KOTHRUD, PUNE 411038, MAHARASHTRA PAN :AAAFD8489N DCIT, CPC(TDS), GHAZIABAD, UP 2013-14 QR-4 26Q 16 TO 18 1781 TO 1783/PUN/2016 EXPRESSIONS, F1, 48-49, GRAFICON PARADISE, NIBM ROAD, KONDHWA, PUNE 411048 MAHARASHTRA PAN :AACFE7510M DCIT, CPC(TDS), GHAZIABAD, UP 2013-14 2013-14 2013-14 QR-2 QR-3 QR-4 26Q 26Q 26Q 2 SECTION 200A/234E GROUP CASES 19 TO 21 1787 TO 1789/PUN/2016 WELLINGDON ESTATES, 412, NUCLEUS 1, CHURCH ROAD, CAMP, PUNE 411001 MAHARASHTRA PAN :AAAFW1797Q DCIT, CPC(TDS), GHAZIABAD, UP 2013-14 2013-14 2013-14 QR-2 QR-3 QR-4 26Q 26Q 26Q 22 TO 24 1794 TO 1796/PUN/2016 VILAS PRABHAKAR RUDRA, 572, SADASHIV PETH, SHANTA COMMERCIAL CENTRE, NEAR GOKHALE HALL, LAXMI ROAD, PUNE 411030 PAN : AAZPR9325A DCIT, CPC(TDS), GHAZIABAD, UP 2013-14 2013-14 2013-14 QR-2 QR-3 QR-4 26Q 26Q 26Q 25 TO 27 1799 TO 1801/PUN/2016 PRINT O TECH ENGINEERS, H2, MANTRI PARK, KARVE ROAD, PUNE 411038 MAHARASHTRA PAN :AABFP4221D DCIT, CPC(TDS), GHAZIABAD, UP 2013-14 2013-14 2013-14 QR-2 QR-3 QR-4 26Q 26Q 26Q 28 TO 29 1805 & 1806/PUN/2016 ZARIR MINOO COOPER, 79/80, SAHANEY SUJAN PARK, KONDHWA, PUNE 411040 MAHARASHTRA PAN :AFHPC2312M DCIT, CPC(TDS), GHAZIABAD, UP 2013-14 2013-14 QR-3 QR-4 26Q 26Q 30 1826/PUN/2016 SIDDHESH SHRIPAD MITKAR, S.NO.525/8, SHRADDHA COMPLEX, SHIVAJI CHOWK, CHAKAN, PUNE 410501 PAN ABIPM1182E DCIT, CPC(TDS), GHAZIABAD, UP 2013-14 QR-4 26Q 31 1827/PUN/2016 SSGS IT EDUCON SERVICES PVT. LTD., FLAT NO.12, DIPAK APARTMENT, 720/18, NAVIPETH, PUNE 411030 PAN : AANCS4018E DCIT, CPC(TDS), GHAZIABAD, UP 2013-14 QR-4 26Q 32 1828/PUN/2016 DESHKUL CHLORINATION PVT. LTD., SHREY APARTMENT, PLOT NO.23, BHUSARI COLONY, KOTHRUD, PUNE 411 038 PAN :AAACD5923A DCIT, CPC(TDS), GHAZIABAD, UP 2013-14 QR-4 24Q 33 1829/PUN/2016 RPS FILTERS PVT. LTD., S.NO.525/8, SHRADDHA COMPLEX, SHIVAJI CHOWK, CHAKAN, PUNE ` PAN : AAECR3972M DCIT, CPC(TDS), GHAZIABAD, UP 2013-14 QR-4 26Q 34 1830/PUN/2016 SANJAY DATTATRAYA NAKADE, OFFICE NO.206, S.R.NO.116/5/1, R. CUBE, WARJE, PUNE 411052 PAN : AAKPN7942G DCIT, CPC(TDS), GHAZIABAD, UP 2014-15 QR-1 24Q 35 1831/PUN/2016 GOVINDA ENTERPRISES, L-6, NIRANT SOCIETY, KOTHARI BLOCKS, BIBWEWADI, PUNE 411037 PAN :AALFG4914A DCIT, CPC(TDS), GHAZIABAD, UP 2014-15 QR-2 26Q 36 1832/PUN/2016 OM ASSOCIATES, D-31, GANESH GARDEN, BIBWEWADI, PUNE 411037 PAN :AACFO8377N DCIT, CPC(TDS), GHAZIABAD, UP 2013-14 QR-4 26Q 37 1863/PUN/2016 RAVINDRA SHREENIWAS KULKARNI, OFFICE NO.512/513, SIDDHARTH TOWERS, KOTHRUD, PUNE 411 029 PAN : ACJPK3309H DCIT, CPC(TDS), GHAZIABAD, UP 2013-14 QR-3 26Q 38 1864/PUN/2016 DEKAR ENGINEERS PVT. LTD., 17, ATUL INDUSTRIAL PREMISES, DEHU-ALANDI ROAD, TALWADE, PUNE 412114 PAN : AACCD3024E DCIT, CPC(TDS), GHAZIABAD, UP 2013-14 QR-4 26Q 3 SECTION 200A/234E GROUP CASES 39 1865/PUN/2016 ANANT PRABHAKAR SOMAN, FLAT NO.6, ANAND APARTMENTS, PRABHAT ROAD, LANE 9/3, PUNE 411004 PAN : ADLPS5295B DCIT, CPC(TDS), GHAZIABAD, UP 2013-14 QR-4 26Q 40 1866/PUN/2016 NIKEE TYRE RETRADERS PVT. LTD., B1, JUNNER TALUKA COOP. INDUSTRIAL ESTATE, TAL. JUNNER, PUNE 410504 PAN : AAACN5820A DCIT, CPC(TDS), GHAZIABAD, UP 2013-14 QR-4 24Q 41 2762 /PUN/2016 ATHARV MARKETING, 1039, E-WARD, RAJARAM ROAD, KOLHAPUR PAN :AATFA1199B DCIT, CPC(TDS), GHAZIABAD, UP 2013-14 QR-4 26Q 42 2763/PUN/2016 ATHARV AGENCIES PVT.LTD., 1039, E-WARD, RAJARAM ROAD, KOLHAPUR PAN : AAGCA2962A DCIT, CPC(TDS), GHAZIABAD, UP 2013-14 QR-4 26Q 43 TO 44 2802 TO 2803/PUN/2016 HARI OM SAREE DEPOT, GAT NO.184, L.D. LAWN, GANDHINAGAR, KOLHAPUR 416 119 PAN :AAGFH2916Q DCIT, CPC(TDS), GHAZIABAD, UP 2015-16 2015-16 QR-2 QR-3 26Q 26Q 45 2805/PUN/2016 KOLHAPUR SHETI UTAPANNA BAJAR SAMITI, SHAHU MARKET YARD, KOLHAPUR PAN : AAAJK0771E DCIT, CPC(TDS), GHAZIABAD, UP 2014-15 QR-1 26Q 46 2807/PUN/2016 QUALITY TOOLS AND EQUIPMENTS, P36, MIDC, SHIROLI, KOLHAPUR 416122 PAN :AAAFQ1485F DCIT, CPC(TDS), GHAZIABAD, UP 2013-14 QR-4 26Q 47 TO 48 2848 & 2849/PUN/2016 SHIVAM ENTERPRISES, 186/2, HANUMAN NAGAR, SHIYE, KOLHAPUR 416 122 PAN : AAYFS1916M DCIT, CPC(TDS), GHAZIABAD, UP 2014-15 2014-15 QR-1 QR-1 26Q 27EQ 49 2873/PUN/2016 SIDDHGIRI GURUKUL FOUNDATION, KANERI MATH, KANERI, KOLHAPUR PAN :AACTS0759G DCIT, CPC(TDS), GHAZIABAD, UP 2014-15 QR-1 26Q 50 TO 51 2885 & 2886/PUN/2016 ATHARV BIO FUEL, 221/A, JAJU ARCADE, TARABAI PARK, KOLHAPUR, PAN : 1039, E-WARD, RAJARAM ROAD, KOLHAPUR 416 003 PAN :AAVFA8767H DCIT, CPC(TDS), GHAZIABAD, UP 2015-16 2015-16 QR-1 QR-3 26Q 26Q 52 2888/PUN/2016 ARTS AND COMMERCE COLLEGE, AP: KADEPUR, TAL. KADEGAON, KOLHAPUR 415 305 PAN : AAAAS1296H DCIT, CPC(TDS), GHAZIABAD, UP 2014-15 QR-1 24Q 53 TO 54 2891 & 2892/PUN/2016 MILLENIUM TOOLING, S-5, MALATI TOWERS, TARABAI PARK, KOLHAPUR-416003 PAN :AAFFM2873E DCIT, CPC(TDS), GHAZIABAD, UP 2013-14 & 2015-16 2013-14 & 2015-16 QR-4 QR-4 26Q 24Q 55 2872/PUN/2016 SIDDHGIRI GURUKUL FOUNDATION, KANERI MATH, KANERI, KOLHAPUR- 416234 PAN :AACTS0759G DCIT, CPC(TDS), GHAZIABAD, UP 2014-15 QR-1 24Q 56 1999/PUN/2016 DOSHI RATANKUMAR RAMDAS, 731, E-WARD, SHAHUPURI, 3 RD LANE, KOLHAPUR 416 001 PAN : AAPPD1497B DCIT, CPC(TDS), GHAZIABAD, UP 2014-15 QR-2 26Q 4 SECTION 200A/234E GROUP CASES ASSESSEE BY : SL.NOS.1 TO 8 NONE SL.NOS. 9 TO 11 NONE (WRITTEN SUBMISSIONS) SL.NO.12 NONE SL.NOS. 13 TO 29 SHRI VILAS P. RUDRA SL.NOS. 30 TO 40 NONE (WRITTEN SUBMISSIONS) SL.NOS. 41 TO 55, 57, & 65 TO 72 - M.K. KULKARN I SL.NOS. 56 NONE (WRITTEN SUBMISSIONS) SL.NO. 58 SHRI SUHAS BORA SL.NOS. 59 TO 60 SHRI S.N. PURANIK SL.NOS. 61 TO 63, 64 NONE REVENUE BY : SHRI HITENDRA NINAWE 57 2020/PUN/2016 LANDAGE SAKHARAM SAHADU, 381, E-WARD, KORGAONKAR COMPOUND, SHAHUPURI, KOLHAPUR 416 001 PAN : AAIPL5634P DCIT, CPC(TDS), GHAZIABAD, UP 2013-14 QR-4 26Q 58 2101/PUN/2016 SURAJPRAKASH H. KHANDELWAL, 400, MANGALWAR PETH, NARPATGIRI CHOWK, PUNE 411 011 PAN : ABKPK9474D DCIT, CPC(TDS), GHAZIABAD, UP 2013-14 QR-4 26Q 59 TO 60 2158 & 2159/PUN/2016 S.U.B. AGRO PVT. LTD., 501, JAY CHAMBERS, GHORPADI PETH, PUNE 411 042 PAN :AAHCS7916F DCIT, CPC(TDS), GHAZIABAD, UP 2013-14 2013-14 QR-4 QR-4 24Q 26Q 61 TO 63 2360 TO 2362/PUN/2016 SHREE P.S. SALOKHE CONSTRUCTION, 212-B, LAXMI NIVAS, SALONKHE GALLI, KALAMBA, KOLHAPUR-416 007 PAN : ABMFS0931K DCIT, CPC(TDS), GHAZIABAD, UP 2013-14 2013-14 2013-14 QR-2 QR-3 QR-4 26Q 26Q 26Q 64 2366/PUN/2016 LAXMAN ANANDRAM NAGDEV, SHOP NO.13, SWANAND COMPLEX, STATION ROAD, NEW SHAHUPURI, KOLHAPUR-416001 PAN : AAMPN4046P DCIT, CPC(TDS), GHAZIABAD, UP 2015-16 QR-1 27EQ 65 TO 68 2368 TO 2371/PUN/2016 SWASTIK CONSTRUCTIONS, 1148/E, SYKES EXTENSION, KOLHAPUR 416 001 PAN :AAXFS5177M DCIT, CPC(TDS), GHAZIABAD, UP 2013-14 2013-14 2013-14 2013-14 QR-2 QR-3 QR-4 QR-2 24Q 24Q 24Q 26Q 69 TO 71 2372 TO 2374/PUN/2016 SWASTIK CONSTRUCTIONS AND R.K. ENGINEERS (JV), 1148/E, SYKES EXTENSION, KOLHAPUR 416 001 PAN : AAFAS9126H DCIT, CPC(TDS), GHAZIABAD, UP 2013-14 2013-14 2013-14 QR-2 QR-3 QR-4 26Q 26Q 26Q 72 2382/PUN/2016 LAXMI CIVIL ENGINEERING SERVICES PRIVATE LIMITED, 1148/E, SKYES EXTENSION, KOLHAPUR 416 001 PAN : AAACL5602N DCIT, CPC(TDS), GHAZIABAD, UP 2013-14 QR-3 24Q / DATE OF HEARING : 09.03.2017 / DATE OF PRONOUNCEMENT : 15.03.2017 5 SECTION 200A/234E GROUP CASES / ORDER PER R.K. PANDA, AM: THIS BUNCH OF APPEALS FILED BY DIFFERENT ASSESSEES ARE DIRECTED AGAINST RESPECTIVE ORDERS OF CIT(A) RELATING TO DIFFERENT A SSESSMENT YEARS AGAINST RESPECTIVE INTIMATION ISSUED UNDER SECTION 200A(3) OF THE INCO ME-TAX ACT, 1961 (IN SHORT THE ACT). 2. THE ABOVE BUNCH OF APPEALS RELATING TO DIFFERENT ASSESSEES WERE HEARD TOGETHER AND ARE BEING DISPOSED OF BY THIS CONSOLIDATED ORDE R AS THE ISSUE RAISED IN ALL THESE APPEALS WAS SIMILAR. 3. THE ISSUE WHICH ARISES IN THE PRESENT SET OF APP EALS IS AGAINST INTIMATION ISSUED BY THE ASSESSING OFFICER UNDER SECTION 200A OF THE ACT, WHEREIN FEES PAYABLE UNDER SECTION 234E OF THE ACT HAVE BEEN CHARGED BY THE AS SESSING OFFICER. THE LEGISLATURE HAD INSERTED CLAUSE (C) TO SECTION 200A(1) OF THE A CT SPECIFICALLY W.E.F. 01.06.2015 AND THE CASE OF ASSESSEE BEFORE US WAS THAT IN SUCH CIR CUMSTANCES WHERE THE SAID AMENDMENT WAS INTRODUCED W.E.F. 01.06.2015 AND THER E WAS NOTHING TO SUGGEST THAT THE SAID AMENDMENT WAS CLARIFICATORY OR RETROSPECTIVE I N NATURE, THEN NO SUCH LATE FEES COULD BE CHARGED UNDER SECTION 234E OF THE ACT IN R ESPECT OF TDS STATEMENTS WHICH WERE FILED PRIOR TO 01.06.2015. 4. THERE WAS A DELAY OF 1 DAY IN THE CASE OF HARI O M SAREE DEPOT VIDE ITA NOS.2802 & 2803/PUN/2016. THE ASSESSEE HAS FILED A CONDONATION PETITION EXPLAINING THE REASON FOR DELAY. AFTER CONSIDERING THE CONTEN TS OF THE PETITION AND AFTER HEARING BOTH THE SIDES, THE DELAY IN FILING OF THE APPEAL I S CONDONED. 5. FIRST WE TAKE UP ITA NO.1753/PUN/2016 IN THE CAS E OF NATIONAL SALES AGENCY AS THE LEAD CASE FOR DECIDING THE ISSUE ON HAND. F ACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESSEE IS A PARTNERSHIP FIRM. THE ASSESSING OFFIC ER LEVIED LATE FILING FEE U/S.234E FOR DELAY IN FILING OF THE TDS STATEMENTS FOR A.Y. 2013 -14( QUARTER NO.4). THE ASSESSEE 6 SECTION 200A/234E GROUP CASES PREFERRED AN APPEAL BEFORE CIT(A). HOWEVER, THE CI T(A) ALSO UPHELD THE ACTION OF THE ASSESSING OFFICER IN LEVYING THE LATE FILING FEE U/ S.234E OF THE I.T. ACT. WHILE DOING SO, HE OBSERVED THAT SECTION 234E HAS BEEN BROUGHT INTO STATUTE W.E.F. 01-07-2012. THE ASSESSEES CASE PERTAINS TO THE PERIOD DURING WHICH SECTION 234E WAS EFFECTIVE. HE HELD THAT ANY DEMAND RAISED U/S.234E IS NOT APPEALA BLE BEFORE CIT(A). FOR THE ABOVE PROPOSITION, HE RELIED ON THE DECISION OF HONBLE B OMBAY HIGH COURT IN THE CASE OF RASHMIKANT KUNDALIA VS. UNION OF INDIA REPORTED IN 2015 (54) TAXMANN.COM 200 (BOMBAY). 5.1 EVEN ON MERIT ALSO, HE OBSERVED THAT THE ASSESS ING OFFICER WAS EMPOWERED TO CHARGE LATE FILING FEE U/S.234E. ACCORDING TO HIM, SECTION 234E OF THE ACT IS TO BE READ ALONGWITH THE PROVISIONS OF SECTION 200(3) OF THE A CT. HE OBSERVED THAT AS PER PROVISIONS OF SECTION 200(3) ANY PERSON DEDUCTING A NY SUM ON OR AFTER 01-04-2005 AND AFTER PAYING THE TAX DEDUCTED TO THE CREDIT OF THE CENTRAL GOVERNMENT WITHIN THE PRESCRIBED TIME WILL PREPARE SUCH STATEMENT FOR SUC H PERIOD AS MAY BE PRESCRIBED. THEREFORE, THE PERSON RESPONSIBLE FOR PAYMENT OF FE ES U/S.234E OF THE ACT IS A PERSON WHO IS MENTIONED U/S.200(3) OF THE ACT. REJECTING THE VARIOUS EXPLANATIONS GIVEN BY THE ASSESSEE AND DISTINGUISHING THE DECISIONS CITED BEF ORE HIM THE CIT(A) UPHELD THE ACTION OF THE ASSESSING OFFICER IN LEVYING THE FEES PAYABL E U/S.234E OF THE ACT FOR LATE FILING OF THE TDS RETURNS. 6. AGGRIEVED WITH SUCH ORDER OF THE CIT(A) THE ASSE SSEE IS IN APPEAL BEFORE US. 7. AFTER HEARING BOTH THE SIDES WE FIND THE ISSUE R ELATING TO LEVY OF LATE FEES U/S.234E OF THE ACT WHILE ISSUING INTIMATION U/S.20 0A OF THE ACT IS DECIDED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THE COORDINATE BENC H OF THE TRIBUNAL IN THE CASE OF MAHARASHTRA CRICKET ASSOCIATION VS. DCIT (CPC)-TDS, GHAZIABAD. THE TRIBUNAL VIDE ORDER DATED 21-09-2016 IN ITA NOS.560/PN/2016 & 561 /PN/2016, 1018/PN/2016 TO 7 SECTION 200A/234E GROUP CASES 1023/PN/2016 FOR ASSESSMENT YEARS 2013-14 AND 2014- 15 HAS THOROUGHLY DISCUSSED THE ISSUE AND OBSERVED AS UNDER : 16. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSE D THE RECORD. THE ISSUE ARISING IN THIS BUNCH OF APPEALS IS AGAINST LEVY OF FEES UN DER SECTION 234E OF THE ACT. IN ORDER TO ADJUDICATE THE ISSUE, FIRST REFERENCE IS BEING MADE TO THE RELEVANT PROVISIONS OF THE ACT. UNDER CHAPTER XVII HEADED COLLECTION AND RECOVERY OF TAXES AND UNDER CLAUSE B, DEDUCTION AT SOURCE, THE STATUTE LAYS DOWN THE DUTY OF THE PAYER OF CERTAIN AMOUNTS TO DEDUCT TAX AT SOURCE UNDER SECTIONS 192 TO 194LD, 1 95 TO 196D OF THE ACT. UNDER SECTION 198 OF THE ACT, IT IS PROVIDED THAT THE TAX DEDUCTED AT SOURCE SHALL FOR THE PURPOSE OF COMPUTING THE INCOME OF ASSESSEE BE DEEMED TO BE INCOME RECEIVED. UNDER SECTION 199 OF THE ACT, IT IS FURTHER PROVIDED THAT ANY DED UCTION MADE IN ACCORDANCE WITH THE PROVISIONS OF CHAPTER AND PAID TO THE CENTRAL GOVER NMENT SHALL BE TREATED AS PAYMENT OF TAX ON BEHALF OF THE PERSON FROM WHOSE INCOME TH E DEDUCTION WAS MADE. THE SUM REFERRED TO IN SUB-SECTION (1A) OF SECTION 192 OF T HE ACT AND PAID TO THE CENTRAL GOVERNMENT SHALL BE TREATED AS THE TAX PAID ON BEHA LF OF THE PERSON IN RESPECT OF WHOSE INCOME SUCH PAYMENT OF TAX HAS BEEN MADE. 17. SECTION 200 OF THE ACT LAYS DOWN THE DUTY OF TH E PERSON DEDUCTING TAX, WHICH READS AS UNDER:- 200. (1) ANY PERSON DEDUCTING ANY SUM IN ACCORDANCE WIT H THE FOREGOING PROVISIONS OF THIS CHAPTER SHALL PAY WITHIN THE PRE SCRIBED TIME, THE SUM SO DEDUCTED TO THE CREDIT OF THE CENTRAL GOVERNMENT OR AS THE BOARD DIRECTS. (2) ANY PERSON BEING AN EMPLOYER, REFERRED TO IN SU B-SECTION (1A) OF SECTION 192 SHALL PAY, WITHIN THE PRESCRIBED TIME, THE TAX TO THE CREDIT OF THE CENTRAL GOVERNMENT OR AS THE BOARD DIRECTS. (2A) IN CASE OF AN OFFICE OF THE GOVERNMENT, WHERE THE SUM DEDUCTED IN ACCORDANCE WITH THE FOREGOING PROVISIONS OF THIS CH APTER OR TAX REFERRED TO IN SUB- SECTION(1A) OF SECTION 192 HAS BEEN PAID TO THE CRE DIT OF THE CENTRAL GOVERNMENT WITHOUT THE PRODUCTION OF A CHALLAN, THE PAY AND AC COUNTS OFFICER OR THE TREASURY OFFICER OR THE CHEQUE DRAWING AND DISBURSING OFFICE R OR ANY OTHER PERSON, BY WHATEVER NAME CALLED, WHO IS RESPONSIBLE FOR CREDIT ING SUCH SUM OR TAX TO THE CREDIT OF THE CENTRAL GOVERNMENT, SHALL DELIVER OR CAUSE TO BE DELIVERED TO THE PRESCRIBED INCOME-TAX AUTHORITY, OR TO THE PERSON A UTHORISED BY SUCH AUTHORITY, A STATEMENT IN SUCH FORM, VERIFIED IN SUCH MANNER, SE TTING FORTH SUCH PARTICULARS AND WITHIN SUCH TIME AS MAY BE PRESCRIBED. (3) ANY PERSON DEDUCTING ANY SUM ON OR AFTER THE 1S T DAY OF APRIL, 2005 IN ACCORDANCE WITH THE FOREGOING PROVISIONS OF THIS CH APTER OR, AS THE CASE MAY BE, ANY PERSON BEING AN EMPLOYER REFERRED TO IN SUB-SEC TION (1A) OF SECTION 192 SHALL, AFTER PAYING THE TAX DEDUCTED TO THE CRE DIT OF THE CENTRAL GOVERNMENT WITHIN THE PRESCRIBED TIME, PREPARE SUCH STATEMENTS FOR SUCH PERIOD AS MAY BE PRESCRIBED AND DELIVER OR CAUSE TO BE DELIVERED TO THE PRESCRIBED INCOME-TAX AUTHORITY OR THE PERSON AUTHORISED BY SUCH AUTHORIT Y SUCH STATEMENT IN SUCH FORM AND VERIFIED IN SUCH MANNER AND SETTING FORTH SUCH PARTICULARS AND WITHIN SUCH TIME AS MAY BE PRESCRIBED: PROVIDED THAT THE PERSON MAY ALSO DELIVER TO THE PRESCRIBED AUTHORITY A CORRECTION STATEMENT FOR RECTIFICATION OF ANY MISTA KE OR TO ADD, DELETE OR UPDATE THE INFORMATION FURNISHED IN THE STATEMENT DELIVERE D UNDER THIS SUB-SECTION IN SUCH FORM AND VERIFIED IN SUCH MANNER AS MAY BE SPE CIFIED BY THE AUTHORITY. 18. UNDER SECTION 200(1) OF THE ACT, IT IS PROVIDED THAT ANY PERSON DEDUCTING ANY SUM IN ACCORDANCE WITH THE PROVISIONS OF THE CHAPTER SH ALL PAY WITHIN THE PRESCRIBED TIME, THE SUM SO DEDUCTED TO THE CREDIT OF THE CENTRAL GOVERN MENT OR AS THE BOARD DIRECTS. UNDER SECTION 200(2) OF THE ACT, ANY PERSON BEING AN EMPL OYER, AS REFERRED TO IN SUB-SECTION (1A) OF SECTION 192 OF THE ACT SHALL PAY, WITHIN TH E PRESCRIBED TIME, THE TAX TO THE CREDIT OF THE CENTRAL GOVERNMENT OR AS THE BOARD DIRECTS. UN DER SUB-SECTION (2A) OF THE ACT, IT IS 8 SECTION 200A/234E GROUP CASES PROVIDED THAT WHERE THE SUM HAS BEEN DEDUCTED IN AC CORDANCE WITH FOREGOING PROVISIONS OF THE CHAPTER, BY THE OFFICE OF THE GOVERNMENT, TH EN DUTY IS UPON THE TREASURY OFFICER OR THE DRAWING & DISBURSING OFFICER OR ANY OTHER PE RSON, TO DELIVER OR CAUSE TO BE DELIVERED TO THE PRESCRIBED INCOME TAX AUTHORITIES, OR TO THE PERSON AUTHORIZED BY SUCH AUTHORITY, STATEMENT IN SUCH FORM, VERIFIED IN SUCH MANNER, SETTING FORTH SUCH PARTICULARS WITHIN SUCH TIME AS MAY BE PRESCRIBED. UNDER SECTI ON 200(3) OF THE ACT, SIMILAR RESPONSIBILITY IS ON ANY PERSON DEDUCTING ANY SUM O N OR AFTER FIRST DAY OF APRIL, 2005 IN ACCORDANCE WITH FOREGOING PROVISIONS OF THE CHAPTER , INCLUDING ANY PERSON AS AN EMPLOYER REFERRED TO IN SECTION 192(1A) OF THE ACT. THE ONUS IS UPON SUCH PERSON THAT HE SHALL AFTER PAYING THE TAX TO THE CREDIT OF CENT RAL GOVERNMENT WITHIN PRESCRIBED TIME, PREPARE SUCH STATEMENT FOR SUCH PERIOD AS MAY BE PR ESCRIBED AND DELIVER OR CAUSE TO BE DELIVERED TO THE PRESCRIBED INCOME TAX AUTHORITY OR ANY PERSON SO AUTHORIZED, SUCH STATEMENT IN SUCH FORM AND VERIFIED IN SUCH MANNER AND SETTING FORTH SUCH PARTICULARS AND WITHIN SUCH TIME AS MAY BE PROVIDED. THE DUTY IS UPON A PERSON DEDUCTING ANY SUM IN ACCORDANCE WITH VARIOUS PROVISIONS UNDER THE CHA PTER AND ALSO UPON AN EMPLOYER WHO IS MAKING DEDUCTION OUT OF THE PAYMENTS MADE TO THE EMPLOYEES, THEN SUB-SECTION (3) REQUIRES THAT THE DEDUCTOR IS TO PREPARE A STAT EMENT FOR SUCH PERIOD AS MAY BE PRESCRIBED, WHICH IS TO BE DELIVERED TO THE PRESCRI BED AUTHORITY, IN SUCH FORM AND VERIFIED AND SETTING FORTH SUCH PARTICULARS AS MAY BE PRESCR IBED. THE SAID STATEMENT IS TO BE DELIVERED WITHIN SUCH TIME AS MAY BE PRESCRIBED. 19. RULE 31A OF THE INCOME TAX RULES, 1962 (IN SHOR T THE RULES) PROVIDES THAT EVERY PERSON WHO IS RESPONSIBLE FOR DEDUCTION OF TAX UNDE R CHAPTER XVIIB SHALL IN ACCORDANCE WITH THE PROVISIONS OF SECTION 200(3) OF THE ACT, D ELIVER OR CAUSE TO BE DELIVERED, THE QUARTERLY STATEMENTS TO THE DIRECTOR GENERAL OF INC OME TAX (SYSTEMS) OR THE PERSONS AUTHORIZED BY THEM I.E. IN RESPECT OF DEDUCTIONS UN DER VARIOUS PROVISIONS OF THE CHAPTER XVIIB. THE RULE FURTHER PROVIDES THAT THE STATEMEN TS REFERRED TO IN SUB-RULE (1) ARE TO BE DELIVERED QUARTERLY AND THE STIPULATED PERIOD OF DU E DATE OF FILING THE SAID STATEMENT IN RESPECT OF DEDUCTOR BEING AN OFFICE OF THE GOVERNME NT AND THE DEDUCTOR BEING OTHER THAN GOVERNMENT, ARE PROVIDED. THE SUB-RULE (3) OF RULE 31A OF THE RULES FURTHER PROVIDES THAT THE STATEMENT REFERRED TO IN SUB-RULE (1) MAY BE FURNISHED IN ANY OF THE FOLLOWING MANNERS I.E. BY WAY OF FURNISHING THE STATEMENT IN PAPER FORM OR FURNISHING THE STATEMENT ELECTRONICALLY UNDER DIGITAL SIGNATURE OR AFTER VER IFICATION. INITIALLY, SUCH STATEMENT HAD TO BE FURNISHED IN PAPER FORM AND LATER BY WAY OF AMEN DMENT, THE PROCEDURE FOR FURNISHING THE STATEMENT ELECTRONICALLY WAS PROVIDED. ONCE TH E STATEMENT HAS BEEN SO SUBMITTED BY THE DEDUCTOR OF TAX DEDUCTED AT SOURCE, THEN PRO CESSING OF STATEMENT IS AS PER THE PROVISIONS OF SECTION 200A OF THE ACT. THE SAID SE CTION WAS INSERTED BY THE FINANCE (NO.2) ACT, 2009 W.E.F. 01.04.2010. THE SAID SECTI ON 200A OF THE ACT READS AS UNDER:- 200A. (1) WHERE A STATEMENT OF TAX DEDUCTION AT SOURCE O R A CORRECTION STATEMENT HAS BEEN MADE BY A PERSON DEDUCTING ANY SUM (HEREAFTER REFERRED TO IN THIS SECTION AS DEDUCTOR) UNDER SECTION 200, SUCH STATEMENT SHALL B E PROCESSED IN THE FOLLOWING MANNER, NAMELY: (A) THE SUMS DEDUCTIBLE UNDER THIS CHAPTER SHALL B E COMPUTED AFTER MAKING THE FOLLOWING ADJUSTMENTS, NAMELY: (I) ANY ARITHMETICAL ERROR IN THE STATEMENT; OR (II) AN INCORRECT CLAIM, APPARENT FROM ANY INFORMAT ION IN THE STATEMENT; (B) THE INTEREST, IF ANY, SHALL BE COMPUTED ON THE BASIS OF THE SUMS DEDUCTIBLE AS COMPUTED IN THE STATEMENT; (C) THE SUM PAYABLE BY, OR THE AMOUNT OF REFUND DU E TO, THE DEDUCTOR SHALL BE DETERMINED AFTER ADJUSTMENT OF AMOUNT COMPUTED UNDE R CLAUSE (B) AGAINST ANY AMOUNT PAID UNDER SECTION 200 AND SECTI ON 201, AND ANY AMOUNT PAID OTHERWISE BY WAY OF TAX OR INTEREST; (D) AN INTIMATION SHALL BE PREPARED OR GENERATED A ND SENT TO THE DEDUCTOR SPECIFYING THE SUM DETERMINED TO BE PAYABLE BY, OR THE AMOUNT OF REFUND DUE TO, HIM UNDER CLAUSE (C); AND (E) THE AMOUNT OF REFUND DUE TO THE DEDUCTOR IN PU RSUANCE OF THE DETERMINATION UNDER CLAUSE (C) SHALL BE GRANTED TO THE DEDUCTOR : 9 SECTION 200A/234E GROUP CASES PROVIDED THAT NO INTIMATION UNDER THIS SUB-SECTION SHALL BE SENT AFTER THE EXPIRY OF ONE YEAR FROM THE END OF THE FINANCIAL YEAR IN W HICH THE STATEMENT IS FILED. EXPLANATION.FOR THE PURPOSES OF THIS SUB-SECTION, 'AN INCORRECT CLAIM APPARENT FROM ANY INFORMATION IN THE STATEMENT' SHALL MEAN A CLAIM, ON THE BASIS OF AN ENTRY, IN THE STATEMENT (I) OF AN ITEM, WHICH IS INCONSISTENT WITH ANOTHER ENTRY OF THE SAME OR SOME OTHER ITEM IN SUCH STATEMENT; (II) IN RESPECT OF RATE OF DEDUCTION OF TAX AT SOUR CE, WHERE SUCH RATE IS NOT IN ACCORDANCE WITH THE PROVISIONS OF THIS ACT. (2) FOR THE PURPOSES OF PROCESSING OF STATEMENTS UN DER SUB-SECTION (1), THE BOARD MAY MAKE A SCHEME FOR CENTRALISED PROCESSING OF STATEMENTS OF TAX DEDUCTED AT SOURCE TO EXPEDITIOUSLY DETERMINE THE T AX PAYABLE BY, OR THE REFUND DUE TO, THE DEDUCTOR AS REQUIRED UNDER THE SAID SUB -SECTION. 20. SECTION 200A OF THE ACT LAYS DOWN THE MANNER IN WHICH THE STATEMENTS OF TAX DEDUCTED AT SOURCE ARE TO BE PROCESSED FOR ISSUING THE INTIMATION. FIRST OF ALL, THE SUMS DEDUCTIBLE UNDER THE CHAPTER ARE TO BE COMPUTED AND INTEREST, IF ANY, SHALL BE COMPUTED ON THE BASIS OF SUCH SUMS DEDUCTIBLE AS COMPUTED IN THE STATEMENTS AS PER CLAUSE (A) AND (B) UNDER SECTION 200A(1) OF THE ACT. CLAUSES (C) TO (F) REPRODUCED ABOVE WERE SUBSTITUTED FOR CLAUSES (C) TO (E) BY THE FINANCE A CT, 2015 W.E.F. 01.06.2015. PRIOR TO THE SUBSTITUTION, CLAUSES (C) TO (E) READ AS UNDER:- (C) THE SUM PAYABLE BY, OR THE AMOUNT OF REFUND DU E TO, THE DEDUCTOR SHALL BE DETERMINED AFTER ADJUSTMENT OF AMOUNT COMPUTED UNDE R CLAUSE (B) AGAINST ANY AMOUNT PAID UNDER SECTION 200 AND SECTI ON 201, AND ANY AMOUNT PAID OTHERWISE BY WAY OF TAX OR INTEREST; (D) AN INTIMATION SHALL BE PREPARED OR GENERATED AN D SENT TO THE DEDUCTOR SPECIFYING THE SUM DETERMINED TO BE PAYABLE BY, OR THE AMOUNT OF REFUND DUE TO, HIM UNDER CLAUSE (C); AND (E) THE AMOUNT OF REFUND DUE TO THE DEDUCTOR IN PUR SUANCE OF THE DETERMINATION UNDER CLAUSE (C) SHALL BE GRANTED TO THE DEDUCTOR. 21. AS PER NEWLY SUBSTITUTED CLAUSE (C) W.E.F. 01.0 6.2015, THE FEES, IF ANY, IS TO BE COMPUTED IN ACCORDANCE WITH THE PROVISIONS OF SECTI ON 234E OF THE ACT. HOWEVER, UNDER THE EARLIER CLAUSE (C), THERE WAS NO SUCH PROVISION . 22. SECTION 234E(1) OF THE ACT PROVIDES THAT WHERE A PERSON FAILS TO DELIVER OR CAUSE TO BE DELIVERED, A STATEMENT WITHIN TIME PRESCRIBED IN SECTION 200(3) OF THE ACT OR THE PROVISO TO SECTION 206C(3) OF THE ACT, HE SHALL BE LIABLE TO PAY, BY WAY OF FEES, SUM OF RS.200/- FOR EVERY DAY DURING WHICH THE FAILURE CON TINUES. THE SAID PROVISIONS WERE INSERTED BY THE FINANCE ACT, 2012 W.E.F. 01.07.2012 . UNDER SUB-SECTION (2), IT IS FURTHER PROVIDED THAT THE AMOUNT OF FEES REFERRED TO IN SUB -SECTION (1) SHALL NOT EXCEED THE AMOUNT OF TAX DEDUCTIBLE OR COLLECTABLE, AS THE CAS E MAY BE. SUB-SECTION (3) FURTHER LAYS DOWN THAT THE AMOUNT OF FEES REFERRED TO IN SUB-SEC TION (1) SHALL BE PAID BEFORE DELIVERING OR CAUSING TO BE DELIVERED A STATEMENT I N ACCORDANCE WITH SUB-SECTION 200(3) OF THE ACT OR THE PROVISO TO SECTION 206C(3) OF THE ACT. THE PROVISIONS OF SAID SECTION HAVE BEEN MADE APPLICABLE TO A STATEMENT TO BE DELI VERED OR CAUSE TO BE DELIVERED ON OR AFTER THE FIRST DAY OF JULY, 2012. 23. READING THE ABOVE SAID PROVISIONS OF THE ACT, I T TRANSPIRES THAT WHERE TAX HAS BEEN DEDUCTED AT SOURCE BY A DEDUCTOR OUT OF THE AC COUNT OF DEDUCTEE, THEN THE ONUS IS UPON THE DEDUCTOR UNDER SECTION 200 OF THE ACT TO P REPARE A STATEMENT IN SUCH FORM AND VERIFIED IN SUCH MANNER WHICH IS PRESCRIBED UNDER T HE ACT IN WHICH THE PARTICULARS OF TAX DEDUCTION AT SOURCE ARE TO BE PROVIDED AND THE SAID STATEMENT IS TO BE DELIVERED OR CAUSE TO BE DELIVERED WITHIN SUCH TIME AS MAY BE PR ESCRIBED. RULE 31A OF THE RULES 10 SECTION 200A/234E GROUP CASES PROVIDED THE TIME LIMIT FOR THE FURNISHING OF STATE MENT FOR TAX DEDUCTION AT SOURCE ON QUARTERLY BASIS. SECTION 234E OF THE ACT LEVIES FE ES FOR DEFAULT IN FURNISHING THE STATEMENTS OF TAX DEDUCTED AT SOURCE. SUCH FEES IS TO BE PAID BEFORE DELIVERING OR CAUSING TO BE DELIVERED A STATEMENT IN ACCORDANCE W ITH SECTION 200(3) OF THE ACT OR PROVISO TO SECTION 206C(3) OF THE ACT. IN OTHER WO RDS, IN CASE THE ASSESSEE HAS DEFAULTED IN NOT DELIVERING THE STATEMENT OR CAUSIN G TO DELIVER THE STATEMENT WITHIN TIME PRESCRIBED, THEN HE IS LIABLE TO PAY THE FEES WHICH IS SO PRESCRIBED UNDER THE ACT AND SUCH FEES SHALL NOT EXCEED THE AMOUNT OF TAX DEDUCT IBLE OR COLLECTABLE AT SOURCE BUT THE SAME HAS TO BE PAID ALONG WITH STATEMENT WHICH IS T O BE DELIVERED UNDER THE PROVISIONS OF SECTION 200(3) OF THE ACT. THOUGH THE STATEMENT OF TAX DEDUCTED AT SOURCE HAS TO BE FURNISHED BY THE DEDUCTOR, NO DOUBT, UNDER SECTION 200 OF THE ACT, BUT THE SAME HAS TO BE PROCESSED BY THE PRESCRIBED AUTHORITY AS PER PRO VISIONS OF SECTION 200A OF THE ACT. IN CASE THERE IS ANY VARIATION IN THE TAX, SUM DEDUCTI BLE UNDER THE CHAPTER AND / OR THEIR PAYMENT, THE ASSESSING OFFICER IS EMPOWERED TO MAKE ADJUSTMENTS IN THIS REGARD AND ALSO REJECT INCORRECT CLAIM MADE BY THE DEDUCTOR WH ICH IS APPARENT FROM THE INFORMATION IN THE STATEMENT FILED BY THE DEDUCTOR. FURTHER, T HE INCOME-TAX AUTHORITY IS AUTHORIZED TO CHARGE INTEREST, IF ANY, AND THE SAME SHALL BE COMP UTED ON THE BASIS OF SUMS DEDUCTIBLE IN ADDITION TO THE AMOUNT OF TAX DEDUCTED AT SOURCE , WHICH IS TO BE PAID TO THE ACCOUNT OF TREASURY BY THE DEDUCTOR. IN CASE OF ANY DEFAULT, INTEREST IS TO BE CHARGED AGAINST SUCH DEDUCTOR AND THE SAME IS TO BE COMPUTED AS PER PROV ISIONS OF SECTION 200A(1)(B) OF THE ACT. FURTHER, IN ADDITION TO BOTH THESE AMOUNTS, C LAUSE (C) TO SECTION 200A OF THE ACT PROVIDES FEES TO BE LEVIED WHICH SHALL BE COMPUTED IN ACCORDANCE WITH THE PROVISIONS OF SECTION 234E OF THE ACT. THE SAID PROVISION TO CHA RGE FEES BY THE PRESCRIBED AUTHORITY HAS BEEN SUBSTITUTED FOR EARLIER PROVISIONS BY THE FINANCE ACT, 2015 W.E.F. 01.06.2015. PRIOR TO THE SAID SUBSTITUTION THOUGH THE PROVISION S OF SECTION 234E OF THE ACT FOR PAYMENT OF FEES FOR DEFAULT IN FURNISHING THE STATE MENT WERE INSERTED BY THE FINANCE ACT, 2012 W.E.F. 01.07.2012, THE PRESCRIBED AUTHORITY DI D NOT HAVE THE POWER TO CHARGE THE SAID FEES, WHILE PROCESSING THE QUARTERLY STATEMENT S / RETURNS UNDER SECTION 200A OF THE ACT. 24. NOW, LOOKING AT VARIOUS PROVISIONS OF THE ACT, THE ISSUE NEEDS TO BE ADJUDICATED IN THE CASE OF ASSESSEE, WHEREIN ADMITTEDLY, TDS RE TURNS WHICH WERE DEEMED TO BE FILED BY THE ASSESSEE WERE FILED AFTER DELAY AND THE QUES TION WAS WHETHER THE ASSESSING OFFICER WHICH PROCESSING THE INTIMATION UNDER SECTI ON 200A OF THE ACT COULD CHARGE LATE FEE UNDER THE PROVISIONS OF SECTION 234E OF THE ACT . THE ASSESSEE CLAIMS THAT THE ASSESSING OFFICER AT BEST COULD CHARGE THE DIFFEREN CE IN TAX DEDUCTED AND NOT PAID IN TREASURY FROM THE DEDUCTOR AND / OR ANY INTEREST PA YABLE ON SUCH DEDUCTION OF TAX AT SOURCE. HOWEVER, TILL SUBSTITUTION OF CLAUSE (C) T O SECTION 200A(1) OF THE ACT BY THE FINANCE ACT, 2015 W.E.F. 01.06.2015, THE ASSESSING OFFICER WAS NOT EMPOWERED TO CHARGE FEES UNDER SECTION 234E OF THE ACT. THE CAS E OF REVENUE ON THE OTHER HAND, WAS THAT IT WAS THE DUTY OF DEDUCTOR WHILE FURNISHI NG THE STATEMENT UNDER SECTION 200(3) OF THE ACT TO DEPOSIT THE FEES REFERRED TO IN SECTI ON 234E(1) OF THE ACT. THE LEARNED CIT- DR STRESSED THAT FEES REFERRED TO IN SUB-SECTION (1 ) HAD TO BE PAID WHILE DELIVERING OR CAUSING TO DELIVER THE STATEMENT IN ACCORDANCE WITH PROVISIONS OF SECTION 200(3) OF THE ACT OR THE PROVISO TO SECTION 206C(3) OF THE ACT. HOWEVER, VARIOUS REGULATIONS AND THE STATUTORY PROVISIONS IN THIS REGARD POINT OUT THAT UNDOUBTEDLY, THE RESPONSIBILITY OF THE DEDUCTOR WAS TO DEPOSIT THE TAX DEDUCTED AT SOURCE IN TIME AND IF NOT SO, THEN WITH INTEREST AND CONSEQUENTLY, WHERE THE TAX WAS NOT PA ID IN TIME AND INTEREST WAS NOT PAID IN TIME AND THEN, WHERE THE STATEMENT OF TAX DEDUCT ED AT SOURCE COULD NOT BE FILED BEFORE THE PRESCRIBED AUTHORITY WITHIN STIPULATED TIME, TH E ASSESSEE WAS LIABLE TO LEVY OF FEES UNDER SECTION 234E OF THE ACT. HOWEVER, IN CASE AN Y DEFAULT OCCURS DUE TO THE NON- PAYMENT OF FEES BY THE ASSESSEE IN THIS REGARD, THE N THE PROVISIONS WHICH HAS TO BE CONSIDERED IS SECTION 200A(1)(C) OF THE ACT. THE P OWER TO CHARGE / COLLECT FEES AS PER PROVISIONS OF SECTION 234E OF THE ACT WAS VESTED WI TH THE PRESCRIBED AUTHORITY UNDER THE ACT ONLY ON SUBSTITUTION OF EARLIER CLAUSE (C) TO S ECTION 200A OF THE ACT BY THE FINANCE ACT, 2015 W.E.F. 01.06.2015. ONCE ANY PROVISION OF THE ACT HAS BEEN MADE APPLICABLE FROM A RESPECTIVE DATE, THEN THE REQUIREMENT OF THE STATUTE IS TO APPLY THE SAID PROVISIONS FROM THE SAID DATE. 11 SECTION 200A/234E GROUP CASES 25. IN RESPECT OF THE ISSUE RAISED BEFORE US, IT IS CLEAR THAT THE PRESCRIBED AUTHORITY HAS BEEN VESTED WITH THE POWER TO CHARGE FEES UNDER SECTION 234E OF THE ACT ONLY WITH REGARD TO LEVY OF FEES BY THE SUBSTITUTION MADE BY FINANCE (NO.2) ACT, 2015 W.E.F. 01.06.2015. ONCE THE POWER HAS BEEN GIVEN, UNDER W HICH ANY LEVY HAS TO BE IMPOSED UPON TAX PAYER, THEN SUCH POWER COMES INTO EFFECT F ROM THE DATE OF SUBSTITUTION AND CANNOT BE APPLIED RETROSPECTIVELY. THE SAID EXERCI SE OF POWER HAS BEEN PROVIDED BY THE STATUTE TO BE FROM 01.06.2015 AND HENCE, IS TO BE A PPLIED PROSPECTIVELY. THERE IS NO MERIT IN THE CLAIM OF REVENUE THAT EVEN WITHOUT INS ERTION OF CLAUSE (C) UNDER SECTION 200A(1) OF THE ACT, IT WAS INCUMBENT UPON THE ASSES SEE TO PAY FEES, IN CASE THERE IS DEFAULT IN FURNISHING THE STATEMENT OF TAX DEDUCTED AT SOURCE. ADMITTEDLY, THE ONUS WAS UPON THE ASSESSEE TO PREPARE STATEMENTS AND DELIVER THE SAME WITHIN PRESCRIBED TIME BEFORE THE PRESCRIBED AUTHORITY, BUT THE POWER TO C OLLECT THE FEES BY THE PRESCRIBED AUTHORITY VESTED IN SUCH AUTHORITY ONLY BY WAY OF S UBSTITUTION OF CLAUSE (C) TO SECTION 200A(1) OF THE ACT BY THE FINANCE ACT, 2015 W.E.F. 01.06.2015. PRIOR TO SAID SUBSTATION, THE ASSESSING OFFICER HAD NO AUTHORITY TO CHARGE TH E FEES UNDER SECTION 234E OF THE ACT WHILE ISSUING INTIMATION UNDER SECTION 200A OF THE ACT. BEFORE EXERCISING THE AUTHORITY OF CHARGING ANY SUM FROM ANY DEDUCTOR OR THE ASSESSEE, THE PRESCRIBED AUTHORITY SHOULD HAVE NECESSARY POWER VESTED IN IT AND BEFORE VESTIN G OF SUCH POWER, NO ORDER CAN BE PASSED BY THE PRESCRIBED AUTHORITY IN CHARGING OF S UCH FEES UNDER SECTION 234E OF THE ACT, WHILE EXERCISING JURISDICTION UNDER SECTION 20 0A OF THE ACT. THUS, IN THE ABSENCE OF ENABLING PROVISIONS, UNDER WHICH THE PRESCRIBED AUT HORITY IS EMPOWERED TO CHARGE THE FEES, THE ASSESSING OFFICER WHILE PROCESSING THE RE TURNS FILED BY THE DEDUCTOR IN RESPECT OF TAX DEDUCTED AT SOURCE CAN RAISE THE DEMAND ON A CCOUNT OF TAXES, IF ANY, NOT DEPOSITED AND CHARGE INTEREST. HOWEVER, PRIOR TO 0 1.06.2015, THE ASSESSING OFFICER DOES NOT HAVE THE POWER TO CHARGE FEES UNDER SECTIO N 234E OF THE ACT WHILE PROCESSING TDS RETURNS. IN THE ABSENCE OF ENABLING PROVISIONS , LEVY OF FEES COULD NOT BE EFFECTED IN THE COURSE OF INTIMATION ISSUED UNDER SECTION 200A OF THE ACT PRIOR TO 01.06.2015. 26. THE AMRITSAR BENCH OF TRIBUNAL IN SIBIA HEALTHC ARE (P) LTD. VS. DCIT (2015) 121 DTR 81 (ASR) (TRIB) HAD HELD THAT THE ADJUSTMENT IN RESPECT OF LEVY OF FEES UNDER SECTION 234E OF THE ACT WAS INDEED BEYOND THE SCOPE OF PERM ISSIBLE ADJUSTMENTS CONTEMPLATED UNDER SECTION 200A OF THE ACT. SUCH A LEVY COULD N OT BE EFFECTED IN THE COURSE OF INTIMATION UNDER SECTION 200A OF THE ACT AND IN THE ABSENCE OF ANY OTHER PROVISIONS ENABLING THE DEMAND IN RESPECT OF THIS LEVY HAVING BEEN POINTED OUT, NO SUCH LEVY COULD BE EFFECTED. THE SAID PROPOSITION HAS BEEN APPLIED IN VARIOUS DECISIONS OF DIFFERENT BENCHES OF TRIBUNAL. REFERENCE WAS MADE TO THE DEC ISIONS OF CHENNAI BENCH OF TRIBUNAL IN G. INDIRANI VS. DCIT (SUPRA), AHMEDABAD BENCH OF TRIBUNAL IN M/S. GLOBE ECOLOGISTICS LTD. VS. DCIT IN ITA NOS.2689-2691/AHD /2015, ITA NO.2692/AHD/2015, RELATING TO ASSESSMENT YEAR 2014-15, ITA NO.2693/AH D/2015, RELATING TO ASSESSMENT YEAR 2013-14 AND ITA NOS.2694-2695/AHD/2014, RELATI NG TO ASSESSMENT YEAR 2013-14, VIDE CONSOLIDATED ORDER DATED 26.11.2015 AND CHANDI GARH BENCH OF TRIBUNAL IN M/S. KHANNA WATCHES LTD. VS. DCIT IN ITA NOS.731 TO 735/ CHD/2015, RELATING TO ASSESSMENT YEARS 2014-15 & 2013-14, ORDER DATED 29. 10.2015. 27. WHILE DECIDING THE PRESENT BUNCH OF APPEALS, TH E REVENUE HAD PLACED RELIANCE ON THE RATIO LAID DOWN BY THE HONBLE BOMBAY HIGH C OURT IN RASHMIKANT KUNDALIA VS. UNION OF INDIA (SUPRA) WHEREIN, THE CONSTITUTIONAL VALIDITY OF SECTION 234E OF THE ACT WAS CHALLENGED. THE HONBLE HIGH COURT NOTED THE FACT THAT WHERE THE DEDUCTOR WAS REQUIRED TO FURNISH PERIODICAL QUARTERLY STATEMENTS CONTAINI NG THE DETAILS OF DEDUCTION OF TAX MADE DURING THE QUARTER, BY THE PRESCRIBED DUE DATE AND THE DELAY IN FURNISHING SUCH TDS RETURNS WOULD HAVE CASCADING EFFECT. IT WAS FURTHE R OBSERVED BY THE HONBLE HIGH COURT THAT UNDER THE INCOME-TAX ACT, WHERE THERE IS AN OB LIGATION ON THE INCOME-TAX DEPARTMENT TO PROCESS THE INCOME-TAX RETURNS WITHIN SPECIFIED PERIOD FROM THE DATE OF FILING, THE RETURNS COULD NOT BE ACCURATELY PROCESS ED OF SUCH PERSON ON WHOSE BEHALF TAX HAS BEEN DEDUCTED I.E. DEDUCTEE, UNTIL INFORMATION OF SUCH DEDUCTIONS IS FURNISHED BY THE DEDUCTOR WITHIN THE PRESCRIBED TIME. SINCE THE SUB STANTIAL NUMBER OF DEDUCTORS WERE NOT FILING THEIR TDS RETURNS / STATEMENTS WITHIN PRESCR IBED TIME FRAME, THEN IT LEAD TO AN ADDITIONAL WORK BURDEN UPON THE DEPARTMENT DUE TO T HE FAULT OF THE DEDUCTOR AND IN THIS LIGHT AND TO COMPENSATE FOR ADDITIONAL WORK BURDEN FORCED UPON THE DEPARTMENT, FEES 12 SECTION 200A/234E GROUP CASES WAS SOUGHT TO BE LEVIED UNDER SECTION 234E OF THE A CT. THE HONBLE HIGH COURT HELD THAT LOOKING AT THIS FROM THIS PERSPECTIVE, SECTION 234E OF THE ACT WAS NOT PUNITIVE IN NATURE BUT A FEE WHICH WAS A FIXED CHARGE FOR THE EXTRA SE RVICE WHICH THE DEPARTMENT HAD TO PROVIDE DUE TO THE LATE FILING OF TDS STATEMENTS. IT WAS FURTHER HELD BY THE HONBLE HIGH COURT THAT LATE FILING OF TDS RETURNS / STATEMENTS WAS REGULARIZED BY PAYMENT OF FEES AS SET OUT IN SECTION 234E OF THE ACT. THEREFORE, THE FINDINGS OF HONBLE HIGH COURT WERE THUS, THAT THE FEES SOUGHT TO BE LEVIED UNDER SECTI ON 234E OF THE ACT WAS NOT IN THE GUISE OF TAX SOUGHT TO BE LEVIED ON THE DEDUCTOR. THE PR OVISIONS OF SECTION 234E OF THE ACT WERE HELD TO BE NOT ONEROUS ON THE GROUND THAT SECT ION DOES NOT EMPOWER THE ASSESSING OFFICER TO CONDONE THE DELAY IN LATE FILING THE INC OME TAX RETURNS OR THAT NO APPEAL IS PROVIDED FROM ARBITRARY ORDER PASSED UNDER SECTION 234E OF THE ACT. THE HONBLE HIGH COURT HELD THAT THE RIGHT TO APPEAL WAS NOT A MATTE R OF RIGHT BUT WAS CREATURE OF STATUTE AND IF THE LEGISLATURE DEEMS FIT NOT TO PROVIDE REM EDY OF APPEAL, SO BE IT. THE HONBLE HIGH COURT FURTHER HELD THAT A PERSON CAN ALWAYS AP PROACH THE COURT IN EXTRAORDINARY EQUITABLE JURISDICTION UNDER ARTICLE 226/227 OF THE CONSTITUTION AS THE CASE MAY BE. THE HONBLE HIGH COURT THEREFORE, OBSERVED THAT SIMPLY BECAUSE NO REMEDY OF APPEAL WAS PROVIDED FOR THE PROVISIONS OF SECTION 234E OF THE ACT, THE SAME CANNOT BE SAID TO BE ONEROUS AND SECTION 234E OF THE ACT WAS HELD TO BE CONSTITUTIONALLY VALID. THE CONSTITUTIONAL VALIDITY OF PROVISIONS OF SECTION 23 4E OF THE ACT HAS ALSO BEEN UPHELD BY THE HONBLE RAJASTHAN HIGH COURT IN M/S. DUNDLOD SH IKSHAN SANSTHAN & ANR. VS. UNION OF INDIA AND ORS (SUPRA). 28. IN VIEW OF THE ABOVE SAID RATIO LAID DOWN BY TH E HONBLE BOMBAY HIGH COURT, THE CASE OF THE LEARNED CIT-DR BEFORE US WAS THAT THERE IS NO MERIT IN THE PRESENT SET OF APPEALS FILED BY THE ASSESSEE AS THE HONBLE HIGH C OURT HAS LAID DOWN THAT NO APPEAL IS PROVIDED FROM AN ORDER PASSED UNDER SECTION 234E OF THE ACT AND THE SAME MERITS TO BE DISMISSED AT THE OUTSET. IN THIS REGARD, HE HAS RA ISED TWO ISSUES THAT (A) THE APPEAL FILED BY THE ASSESSEE IS NOT MAINTAINABLE AND ALSO (B) TH ERE IS NO MERIT IN THE CLAIM OF THE ASSESSEE THAT THE ASSESSING OFFICER IS NOT EMPOWERE D TO CHARGE FEES UNDER SECTION 234E OF THE ACT BEFORE INSERTION OF CLAUSE (C) TO S ECTION 200A(1) OF THE ACT BY THE FINANCE ACT, 2015 W.E.F. 01.06.2015. THE LEARNED A UTHORIZED REPRESENTATIVE FOR THE ASSESSEE ON THE OTHER HAND, DREW OUR ATTENTION TO T HE MEMORANDUM TO THE FINANCE BILL, 2015 WHILE INTRODUCING THE SAID CLAUSE (C) TO SECTI ON 200A(1) OF THE ACT. THE FINANCE BILL TOOK NOTE OF THE PROVISIONS OF CHAPTER XVIIB, UNDER WHICH THE PERSON DEDUCTING TAX I.E. DEDUCTOR WAS REQUIRED TO FILE QUARTERLY TAX DEDUCTI ON AT SOURCE STATEMENT CONTAINING THE DETAILS OF DEDUCTION OF TAX MADE DURING THE QUARTER BY THE PRESCRIBED DUE DATES. SIMILAR RESPONSIBILITY IS ON A PERSON REQUIRED TO COLLECT T AX OF CERTAIN SPECIFIED RECEIPTS UNDER SECTION 206C OF THE ACT. IN ORDER TO PROVIDE EFFEC TIVE DETERRENCE AGAINST THE DELAY IN FURNISHING TDS / TCS STATEMENTS, THE FINANCE ACT, 2 012 INSERTED SECTION 234E OF THE ACT TO PROVIDE FOR LEVY OF FEES ON LATE FURNISHING OF TDS / TCS STATEMENTS. THE MEMO FURTHER TOOK NOTE OF THE FACT THAT THE FINANCE (NO. 2) ACT, 2009 INSERTED SECTION 200A IN THE ACT, WHICH PROVIDED FOR FURNISHING OF TDS STATE MENTS FOR DETERMINING THE AMOUNT PAYABLE OR REFUNDABLE TO THE DEDUCTOR. IT FURTHER TOOK NOTE THAT HOWEVER, AS SECTION 234E OF THE ACT WAS INSERTED AFTER THE INSERTION OF SECT ION 200A IN THE ACT, THE EXISTING PROVISIONS OF SECTION 200A OF THE ACT DOES NOT PROV IDE FOR DETERMINATION OF FEES PAYABLE UNDER SECTION 234E OF THE ACT AT THE TIME OF PROCES SING OF TDS STATEMENTS. IT WAS THUS, PROPOSED TO AMEND THE PROVISIONS OF SECTION 200A OF THE ACT SO AS TO ENABLE THE COMPUTATION OF FEES PAYABLE UNDER SECTION 234E OF T HE ACT AT THE TIME OF PROCESSING OF TDS STATEMENTS UNDER SECTION 200A OF THE ACT. THE MEMO EXPLAINING THE FINANCE BILL, 2015 VERY CATEGORICALLY HELD THAT CURRENTLY THERE D OES NOT EXIST ANY PROVISION IN THE ACT TO ENABLE THE PROCESSING OF TCS RETURNS AND HENCE, A P ROPOSAL WAS MADE TO INSERT A PROVISION IN THIS REGARD AND ALSO THE POST PROVISIO N SHALL INCORPORATE THE MECHANISM FOR COMPUTATION OF FEES PAYABLE UNDER SECTION 234E OF T HE ACT. THE FINANCE BILL FURTHER REFERS TO THE EXISTING PROVISIONS OF THE ACT I.E. A FTER PROCESSING OF TDS STATEMENT, INTIMATION IS GENERATED SPECIFYING THE AMOUNT PAYAB LE OR REFUNDABLE. THIS INTIMATION GENERATED AFTER PROCESSING OF TDS STATEMENT IS (I) SUBJECT TO RECTIFICATION UNDER SECTION 154 OF THE ACT; (II) APPEALABLE UNDER SECTION 246A OF THE ACT; AND (III) DEEMED AS NOTICE OF PAYMENT UNDER SECTION 156 OF THE ACT. THE FINAN CE BILL FURTHER PROVIDED THAT INTIMATION GENERATED AFTER THE PROPOSED PROCESSING OF TCS STATEMENT SHALL BE AT PAR WITH THE INTIMATION GENERATED AFTER PROCESSING OF TDS ST ATEMENT AND ALSO PROVIDED THAT 13 SECTION 200A/234E GROUP CASES FAILURE TO PAY TAX SPECIFIED IN THE INTIMATION SHAL L ATTRACT LEVY OF INTEREST AS PER PROVISIONS OF SECTION 220(2) OF THE ACT. FURTHER, AMENDMENTS WERE ALSO MADE IN RESPECT OF THE SCHEME OF PAYMENT OF TDS / TCS BY THE GOVERNMENT, D EDUCTOR / COLLECTOR WHICH ARE NOT RELEVANT FOR DECIDING THE ISSUE IN THE PRESENT APPE AL AND HENCE, THE SAME ARE NOT BEING REFERRED TO. THE FINANCE BILL FURTHER PROVIDED THA T THE AMENDMENT WOULD TAKE EFFECT FROM 01.06.2015. 29. THE PERUSAL OF MEMO EXPLAINING THE PROVISION RE LATING TO INSERTION OF CLAUSE (C) TO SECTION 200A OF THE ACT CLARIFIES THE INTENTION OF LEGISLATURE IN INSERTING THE SAID PROVISION. THE PROVISIONS OF SECTION 234E OF THE A CT WERE INSERTED BY THE FINANCE ACT, 2012, UNDER WHICH THE PROVISION WAS MADE FOR LEVY O F FEES FOR LATE FURNISHING TDS / TCS STATEMENTS. BEFORE INSERTION OF SECTION 234E OF TH E ACT, THE FINANCE (NO.2) ACT, 2009 HAD INSERTED SECTION 200A IN THE ACT, UNDER THE SAI D SECTION, MECHANISM WAS PROVIDED FOR PROCESSING OF TDS STATEMENTS FOR DETERMINING TH E AMOUNT PAYABLE OR REFUNDABLE TO THE DEDUCTOR, UNDER WHICH THE PROVISION WAS ALSO MA DE FOR CHARGING OF INTEREST. HOWEVER, SINCE THE PROVISIONS OF SECTION 234E OF TH E ACT WERE NOT ON STATUTE WHEN THE FINANCE (NO.2) ACT, 2009 WAS PASSED, NO PROVISION W AS MADE FOR DETERMINING THE FEES PAYABLE UNDER SECTION 234E OF THE ACT AT THE TIME O F PROCESSING THE TDS STATEMENTS. SO, WHEN SECTION 234E OF THE ACT WAS INTRODUCED, IT PROVIDED THAT THE PERSON WAS RESPONSIBLE FOR FURNISHING THE TDS RETURNS / STATEM ENTS WITHIN STIPULATED PERIOD AND IN DEFAULT, FEES WOULD BE CHARGED ON SUCH PERSON. THE SAID SECTION ITSELF PROVIDED THAT FEES SHALL NOT EXCEED THE AMOUNT OF TAX DEDUCTED AT SOURCE OR COLLECTED AT SOURCE. IT WAS FURTHER PROVIDED THAT THE PERSON RESPONSIBLE FO R FURNISHING THE STATEMENTS SHALL PAY THE SAID AMOUNT WHILE FURNISHING THE STATEMENTS UND ER SECTION 200(3) OF THE ACT. HOWEVER, POWER ENABLING THE ASSESSING OFFICER TO CH ARGE / LEVY THE FEE UNDER SECTION 234E OF THE ACT WHILE PROCESSING THE TDS RETURNS / STATEMENTS FILED BY A PERSON DID NOT EXIST WHEN SECTION 234E OF THE ACT WAS INSERTED BY THE FINANCE ACT, 2012. THE POWER TO CHARGE FEES UNDER THE PROVISIONS OF SECTION 234E OF THE ACT WHILE PROCESSING THE TDS STATEMENTS, WAS DWELLED UPON BY THE LEGISLATURE BY WAY OF INSERTION OF CLAUSE (C) TO SECTION 200A(1) OF THE ACT BY THE FINANCE ACT, 2015 W.E.F. 01.06.2015. ACCORDINGLY, WE HOLD THAT WHERE THE ASSESSING OFFICER HAS PROCESSED THE TDS STATEMENTS FILED BY THE DEDUCTOR, WHICH ADMITTEDLY, WERE FILED BELATEDLY BU T BEFORE INSERTION OF CLAUSE (C) TO SECTION 200A(1) OF THE ACT W.E.F. 01.06.2015, THEN IN SUCH CASES, THE ASSESSING OFFICER IS NOT EMPOWERED TO CHARGE FEES UNDER SECTION 234E OF THE ACT WHILE PROCESSING THE TDS RETURNS FILED BY THE DEDUCTOR. 30. THE HONBLE BOMBAY HIGH COURT IN RASHMIKANT KUN DALIA VS. UNION OF INDIA (SUPRA) HAS UPHELD THE CONSTITUTIONAL VALIDITY OF S AID SECTION INTRODUCED BY THE FINANCE ACT, 2015 W.E.F. 01.06.2015 BUT WAS NOT ABREAST OF THE APPLICABILITY OF THE SAID SECTION 234E OF THE ACT BY THE ASSESSING OFFICER WHILE PROC ESSING TDS STATEMENT FILED BY THE DEDUCTOR PRIOR TO 01.06.2015. IN SUCH SCENARIO, WE FIND NO MERIT IN THE PLEA OF LEARNED CIT-DR THAT THE HONBLE BOMBAY HIGH COURT IN RASHMI KANT KUNDALIA VS. UNION OF INDIA (SUPRA) HAS LAID DOWN THE PROPOSITION THAT FEES UND ER SECTION 234E OF THE ACT IS CHARGEABLE IN THE CASE OF PRESENT SET OF APPEALS, W HERE THE ASSESSING OFFICER HAD ISSUED THE INTIMATION UNDER SECTION 200A OF THE ACT PRIOR TO 01.06.2015. 31. ANOTHER ASPECT OF THE ISSUE IS WHETHER THE AMEN DMENT BROUGHT IN BY THE FINANCE ACT, 2015 W.E.F. 01.06.2015 BY WAY OF INSERTION OF CLAUSE (C) TO SECTION 200A(1) OF THE ACT IS CLARIFICATORY OR IS PROSPECTIVE IN NATURE AN D IS NOT APPLICABLE TO THE PENDING ASSESSMENTS. UNDOUBTEDLY, THE PROVISIONS OF SECTIO N 234E OF THE ACT WERE INSERTED BY THE FINANCE ACT, 2012, UNDER WHICH THE LIABILITY WA S IMPOSED UPON THE DEDUCTOR IN SUCH CASES WHERE TDS STATEMENTS / RETURNS WERE FILED BEL ATEDLY TO PAY THE FEES AS PER SAID SECTION. HOWEVER, IN CASES, WHERE THE ASSESSEE HAS FAILED TO DEPOSIT THE SAID FEES, THEN IN ORDER TO ENABLE THE ASSESSING OFFICER TO COLLECT THE SAID FEES CHARGEABLE UNDER SECTION 234E OF THE ACT, IT IS INCUMBENT UPON THE LEGISLATU RE TO PROVIDE MECHANISM FOR THE ASSESSING OFFICER TO CHARGE AND COLLECT SUCH FEES. IN THE ABSENCE OF ENABLING PROVISIONS, THE ASSESSING OFFICER WHILE PROCESSING THE TDS STATEMENTS, EVEN IF THE SAID STATEMENTS ARE BELATED, IS NOT EMPOWERED TO CHARGE THE FEES UNDER SECTION 234E OF THE 14 SECTION 200A/234E GROUP CASES ACT. THE AMENDMENT WAS BROUGHT IN BY THE FINANCE A CT, 2015 W.E.F. 01.06.2015 AND SUCH AN AMENDMENT WHERE EMPOWERMENT IS GIVEN TO THE ASSESSING OFFICER TO LEVY OR CHARGE THE FEES CANNOT BE SAID TO BE CLARIFICATORY IN NATURE AND HENCE, APPLICABLE FOR PENDING ASSESSMENTS. 32. THE HONBLE SUPREME COURT IN CIT VS. VATIKA TOW NSHIP PVT. LTD. (SUPRA) HAS EXPLAINED THE GENERAL PRINCIPLE CONCERNING RETROSPE CTIVITY AND HAVE HELD THAT OF THE VARIOUS RULES GUIDING HOW A LEGISLATION HAS TO BE I NTERPRETED, ONE ESTABLISHED RULE IS THAT UNLESS CONTRARY INTENTION APPEARS, A LEGISLATION IS PRESUMED NOT TO BE INTENDED TO HAVE A RETROSPECTIVE OPERATION. IDEA BEHIND THE RULE IS T HAT CURRENT LAW SHOULD GOVERN CURRENT ACTIVITIES. THE MEMO EXPLAINING THE FINANCE BILL, 2015 VERY CLEARLY ALSO RECOGNIZES THAT AND REFERS TO THE CURRENT PROVISIONS OF SUB-SECTION (3) TO SECTION 200 OF THE ACT, UNDER WHICH THE DEDUCTOR IS TO FURNISH TDS STATEMENTS. H OWEVER, AS SECTION 234E OF THE ACT WAS INSERTED AFTER INSERTION OF SECTION 200A IN THE ACT, THE EXISTING PROVISIONS OF SECTION 200A OF THE ACT DID NOT PROVIDE FOR DETERMINATION O F FEES PAYABLE UNDER SECTION 234E OF THE ACT AT THE TIME OF PROCESSING OF TDS STATEMENTS . IN THIS REGARD, IT WAS THUS, PROPOSED TO AMEND THE PROVISIONS OF SECTION 200A OF THE ACT SO AS TO ENABLE THE COMPUTATION OF FEES PAYABLE UNDER SECTION 234E OF T HE ACT AT THE TIME OF PROCESSING OF TDS STATEMENTS UNDER SECTION 200A OF THE ACT. IN O THER WORDS, THE ASSESSING OFFICER IS EMPOWERED TO CHARGE FEES PAYABLE UNDER SECTION 234E OF THE ACT IN THE INTIMATION ISSUED AFTER INSERTION OF CLAUSE (C) TO SECTION 200 A(1) OF THE ACT W.E.F. 01.06.2015. THE LEGISLATURE ITSELF RECOGNIZED THAT UNDER THE EXISTI NG PROVISIONS OF SECTION 200A OF THE ACT I.E. PRIOR TO 01.06.2015, THE ASSESSING OFFICER AT THE TIME OF PROCESSING THE TDS STATEMENTS DID NOT HAVE POWER TO CHARGE FEES UNDER SECTION 234E OF THE ACT AND IN ORDER TO COVER UP THAT, THE AMENDMENT WAS MADE BY WAY OF INSERTION OF CLAUSE (C) TO SECTION 200A OF THE ACT. IN SUCH SCENARIO, IT CANNOT BE SA ID THAT INSERTION MADE BY SECTION 200A(1)(C) OF THE ACT IS RETROSPECTIVE IN NATURE, W HERE THE LEGISLATURE WAS AWARE THAT THE FEES COULD BE CHARGED UNDER SECTION 234E OF THE ACT AS PER FINANCE ACT, 2012 AND ALSO THE PROVISIONS OF SECTION 200A OF THE ACT WERE INSE RTED BY FINANCE (NO.2) ACT, 2009, UNDER WHICH THE MACHINERY WAS PROVIDED FOR THE ASSE SSING OFFICER TO PROCESS THE TDS STATEMENTS FILED BY THE ASSESSEE. THE INSERTION CA TEGORICALLY BEING MADE W.E.F. 01.06.2015 LAYS DOWN THAT THE SAID AMENDMENT IS PRO SPECTIVE IN NATURE AND CANNOT BE APPLIED TO PROCESSING OF TDS RETURNS / STATEMENTS P RIOR TO 01.06.2015. 33. WE FURTHER FIND THAT IN RECENT JUDGMENT DATED 2 6.08.2016, THE HONBLE KARNATAKA HIGH COURT IN WRIT APPEAL NOS.2663-2674/2015(T-IT) & ORS IN SRI FATHERAJ SINGHVI & ORS VS. UNION OF INDIA & ORS HAS QUASHED THE INTIMATION ISSUED UNDER SECTION 200A OF THE ACT LEVYING THE FEES FOR DELAYED FILING THE TDS STA TEMENTS UNDER SECTION 234E OF THE ACT. THE HONBLE HIGH COURT NOTES THAT THE FINANCE ACT, 2015 HAD MADE AMENDMENTS TO SECTION 200A OF THE ACT ENABLING THE ASSESSING OFFI CER TO MAKE ADJUSTMENTS WHILE LEVYING FEES UNDER SECTION 234E OF THE ACT WAS APPL ICABLE W.E.F. 01.06.2015 AND HAS HELD THAT IT HAS PROSPECTIVE EFFECT. ACCORDINGLY, THE HONBLE HIGH COURT HELD THAT INTIMATION RAISING DEMAND PRIOR TO 01.06.2015 UNDE R SECTION 200A OF THE ACT LEVYING SECTION 234E OF THE ACT LATE FEES IS NOT VALID. H OWEVER, THE HONBLE HIGH COURT KEPT OPEN THE ISSUE ON CONSTITUTIONAL VALIDITY OF SECTIO N 234E OF THE ACT. WE HAVE ALREADY REFERRED TO THE DECISION OF HONBLE BOMBAY HIGH COU RT IN RASHMIKANT KUNDALIA VS. UNION OF INDIA (SUPRA) IN THIS REGARD, WHEREIN THE CONSTITUTIONAL VALIDITY OF SECTION 234E OF THE ACT HAS BEEN UPHELD. 34. ACCORDINGLY, WE HOLD THAT THE AMENDMENT TO SECT ION 200A(1) OF THE ACT IS PROCEDURAL IN NATURE AND IN VIEW THEREOF, THE ASSES SING OFFICER WHILE PROCESSING THE TDS STATEMENTS / RETURNS IN THE PRESENT SET OF APPEALS FOR THE PERIOD PRIOR TO 01.06.2015, WAS NOT EMPOWERED TO CHARGE FEES UNDER SECTION 234E OF THE ACT. HENCE, THE INTIMATION ISSUED BY THE ASSESSING OFFICER UNDER SECTION 200A OF THE ACT IN ALL THESE APPEALS DOES NOT STAND AND THE DEMAND RAISED BY WAY OF CHARGING THE FEES UNDER SECTION 234E OF THE ACT IS NOT VALID AND THE SAME IS DELETED. THE INTI MATION ISSUED BY THE ASSESSING OFFICER WAS BEYOND THE SCOPE OF ADJUSTMENT PROVIDED UNDER S ECTION 200A OF THE ACT AND SUCH ADJUSTMENT COULD NOT STAND IN THE EYE OF LAW. 15 SECTION 200A/234E GROUP CASES 35. BEFORE PARTING WE MAY REFER TO RELIANCE PLACED UPON BY THE LEARNED CIT-DR ON THE RATIO LAID DOWN BY CHENNAI BENCH OF TRIBUNAL IN G. INDIRANI VS. DCIT (SUPRA) ON ANOTHER ASPECT WHEREIN IT WAS HELD THAT BEFORE 01. 06.2015, WHETHER THE ASSESSING OFFICER HAD AUTHORITY TO PASS A SEPARATE ORDER UNDE R SECTION 234E OF THE ACT LEVYING FEES FOR DELAY IN FILING THE TDS STATEMENTS UNDER SECTIO N 200(3) OF THE ACT; THE TRIBUNAL HELD YES THAT THE ASSESSING AUTHORITY HAD SUCH POWER A ND AFTER 01.06.2015, THE ASSESSING OFFICER WAS WITHIN HIS LIMIT TO LEVY FEES UNDER SEC TION 234E OF THE ACT EVEN WHILE PROCESSING THE TDS STATEMENTS UNDER SECTION 200A OF THE ACT. IN VIEW OF THE PRESENT SET OF FACTS, WHERE THE ASSESSING OFFICER HAD CHARG ED FEES UNDER SECTION 234E OF THE ACT WHILE PROCESSING THE STATEMENTS UNDER SECTION 200A OF THE ACT BEFORE 01.06.2015, THERE IS NO MERIT IN THE RELIANCE PLACED UPON BY THE LEAR NED CIT-DR ON THE SAID PROPOSITION LAID DOWN BY THE CHENNAI BENCH OF TRIBUNAL AND WE D ISMISS THE SAME. 36. ANOTHER RELIANCE PLACED UPON BY THE LEARNED CIT -DR WAS IN RESPECT OF AMENDMENT BEING RETROSPECTIVE OR PROSPECTIVE AND RE LIANCE WAS PLACED ON THE RATIO LAID DOWN BY HONBLE DELHI HIGH COURT IN CIT VS. NARESH KUMAR (SUPRA). HOWEVER, IN VIEW OF OUR DECISION IN THE PARAS HEREINABOVE, WHERE POW ER IS BEING ENSHRINED UPON THE ASSESSING OFFICER TO LEVY OR CHARGE WHILE PROCESSIN G THE TDS RETURNS W.E.F. 01.06.2015, SUCH PROVISION CANNOT HAVE RETROSPECTIVE EFFECT AS IT WOULD BE DETRIMENTAL TO THE CASE OF TAX PAYER. THE HONBLE DELHI HIGH COURT WAS CONSID ERING THE APPLICATION OF AMENDMENT TO SECTION 40(A)(IA) OF THE ACT BY THE FINANCE ACT, 2010, UNDER WHICH CERTAIN RELAXATIONS WERE GIVEN TO THE APPLICATION OF SAID SECTION AND I T WAS HELD THAT THE SAME APPLIES RETROSPECTIVELY TO EARLIER YEARS. HOWEVER, IN THE PRESENT SET OF APPEALS, THE ISSUE IS AGAINST THE PROVISION UNDER WHICH A NEW ENABLING PO WER IS BEING GIVEN TO CHARGE FEES UNDER SECTION 234E OF THE ACT WHILE PROCESSING TDS RETURNS / STATEMENTS AND SUCH POWER IS TO BE APPLIED PROSPECTIVELY. IN ANY CASE, THE PARLIAMENT ITSELF HAS RECOGNIZED ITS OPERATION TO BE PROSPECTIVE IN NATURE WHILE INT RODUCING CLAUSE (C) TO SECTION 200A(1) OF THE ACT AND HENCE, CANNOT BE APPLIED RETROSPECTI VELY. SIMILARLY, RELIANCE PLACED UPON BY THE LEARNED CIT-DR ON THE RATIO LAID DOWN BY THE HONBLE SUPREME COURT IN GOVINDDAS VS. ITO (SUPRA) IS MISPLACED BECAUSE OF T HE DISTINGUISHABLE FACTS AND ISSUES. 8. THE ISSUE ARISING IN THE PRESENT APPEAL IS IDENT ICAL TO THE ISSUE BEFORE THE TRIBUNAL IN BUNCH OF APPEALS WHERE IT HAS BEEN HELD THAT SINCE THE AMENDMENT TO SECTION 200A(1) OF THE ACT IS PROCEDURAL IN NATURE, THEREFORE, THE ASSESSING OFFICER WHILE PROCESSING THE TDS STATEMENTS / RETURNS IN THE PRES ENT SET OF APPEALS FOR THE PERIOD PRIOR TO 01.06.2015, WAS NOT EMPOWERED TO CHARGE FE ES UNDER SECTION 234E OF THE ACT. ACCORDINGLY, INTIMATION ISSUED BY THE ASSESSING OFF ICER UNDER SECTION 200A OF THE ACT IN ALL THE APPEALS DOES NOT STAND AND THE DEMAND RAISE D BY CHARGING THE FEES UNDER SECTION 234E OF THE ACT IS NOT VALID AND THE SAME I S DELETED. THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE ARE THUS, ALLOWED. 16 SECTION 200A/234E GROUP CASES 9. IDENTICAL GROUNDS HAVE BEEN RAISED BY THE OTHER ASSESSEES IN THEIR RESPECTIVE APPEALS. FOLLOWING OUR OBSERVATIONS GIVEN IN THE P RECEDING PARAGRAPHS WE HOLD THAT THE ASSESSING OFFICER WAS NOT EMPOWERED TO CHARGE FEES U/S.234E OF THE ACT WHILE ISSUING INTIMATION U/S.200A OF THE ACT. ACCORDINGLY, THE O RDER OF CIT(A) ON THIS ISSUE IS SET ASIDE AND THE GROUNDS RAISED BY THE ASSESSEES ARE A LLOWED. 10. IN THE RESULT, ALL THE APPEALS FILED BY THE RES PECTIVE ASSESSEES ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 15-03-2017. SD/- SD/- (VIKAS AWASTHY) (R.K. PANDA) # / JUDICIAL MEMBER / ACCOUNTANT MEMBER / PUNE ; DATED : 15 TH MARCH, 2017 SATISH & '#)! *! / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. CIT(A) , CONCERNED 4. 5. 6. CIT CONCERNED ##$, $, / DR, ITAT, B PUNE; * / GUARD FILE. / BY ORDER , // TRUE COPY // //TRUE COPY// /0 /ASSISTANT REGISTRAR $ , / ITAT, PUNE