Debashis Mitra, G B Nagar V. DCIT,TDS, Ghaziabad

ITA 2962/DEL/2018

AI Insights

The case involves two appeals by Debashis Mitra against the late filing fees imposed by the Deputy Commissioner of Income Tax, TDS, Ghaziabad, under Section 234E of the Income Tax Act for the assessment year 2015-16. The fees were levied due to alleged delays in filing TDS returns. The assessee contended that the TDS was deposited correctly but under the wrong names, which was a technical default without any loss to the revenue. The tribunal examined the amendments to Section 200A and the timing of the alleged defaults, concluding that the late fees were not applicable for defaults occurring before the amendment came into effect.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121550 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 10 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-03-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 01-03-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 25-04-2018
• Other Referred Cases: Raj Veer Singh vs. ACIT- CPC- TDS ITA No. 3681/Del/2017
• Laws Referred To: Section 234E of the Act, Section 200A of the Act, Section 194A of the Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: TDS
• Section: 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “B” DELHI BEFORE SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.As No.2962 & 2963/DEL/2018 Assessment Years 2015-16 & 2015-16 Debashis Mitra, Flat No.701, Tower-7, Lotus Boulevard, Near Pathway School, Sector-100, Noida, Gautam Budh Nagar, v. Deputy Commissioner of Income Tax, TDS, Ghaziabad. TAN/PAN: ACVPM0995M (Appellant) (Respondent) Appellant by: None Respondent by: Shri Pankaj Khanna, Sr.DR Date of hearing: 02 03 2023 Date of pronouncement: 07 03 2023 O R D E R PER PRADIP KUMAR KEDIA, A.M.: T he c ap ti o ne d a p p e a l s h a v e b e e n fi le d a t th e i n s ta nc e o f t he A sse s se e a g a i n st t he o r de rs o f t h e Co m m i s si on e r o f I n c o m e T a x (A p pe al s) -I, N oi d a [‘ CI T (A ) ’ in s h or t] b o t h d a t ed 28. 02 . 2 01 8 c on c e rn i n g l e vy o f l at e fe e o f d i f fe re nt a m o u n t u n de r S e c t io n 2 34 E o f t h e A c t vi de i n t i ma t i o ns b ot h da t ed 02 . 0 2. 2 0 16 un d e r S e c t io n 20 0 A (1 ) o f t h e A ct for t h e F i n a nc i al Y ea r 2 0 14 - 15 re l e va nt A sse s s me nt Y e ar 2 01 5- 1 6. IT A N o. 29 62 / D e l /2 01 8 (A sse ss m e n t Y e a r 2 0 1 5 - 16 ) 2. A s pe r t h e g r o u n d s o f a p p e a l, t h e as se s se e be in g bu ye r o f a pr o pe rt y w as l i a b l e to d e d u c t TD S u nd e r S e c t i o n 1 94A o f th e A ct . A s c on te nd ed , t h e r e w a s n o d e l a y i n de p o s i t i n g t he t a x b ut t a x w a s I.T.As No.2962 & 2963/Del/2018 2 w ro n gl y d ep os i t e d by pu t t i n g n a m e o f bu y e r i n pl a c e o f se l l e r a n d na me o f s el l e r i n pl a ce o f bu y e r . T h u s, th e d e f a ul t c o m m i t t ed is o n l y t ec hn ic a l a n d w it h o ut a ny l o ss t o t h e Re ve nu e. A s fu rt he r n o t i c e d fr o m th e st a t e m e nt o f f a c t s, t h e as se ss e e tr ie d t o s e e k r ec t i fi ca t i o n o f fo r m 2 6 Q B s p e c i fi e d f or p a y m e nt f ro m A s s e ss i n g O f fice r -T D S vi de a pp l i ca t i on d a t e d 1 5. 09 . 2 01 4 b u t h ow e ve r n o r ec t i fica t i o n w a s c ar ri e d out . T h e T D S w a s ye t a ga i n de p o s it e d by t h e a ss e ss e e o n 14 . 0 5. 2 0 1 5 w it h c o rr ec t i n fo r m a t i o n . D e spi t e t h is, la t e fi l in g f ee un d e r S ec t i on 2 3 4 E @ Rs. 20 0 p e r d a y a g gr eg at i n g t o Rs. 6 2, 20 0 / - w as l e v i e d on th e a sse ss e e . 3. W e ha ve p e r us e d t he f i r s t a p pe l l a t e o r de r as w e ll a s th e or d e r pa s se d un de r S e c t i o n 23 4 E o f t h e A ct . T he Re ve n ue ha s i mp os e d l a te fi l i n g fe e u nd er S e c t i on 2 3 4 E o f t he A c t f or d e fa u lt i n fu r ni sh in g TD S r et u r n w i t h i n t i me s t i p u l a te d i n l a w . 4. T he m a c h i ne ry p r o vi s i o n o f S e c ti on 2 00A o f t h e Ac t pr o vi d e s fo r p r o c e ss in g o f s t a t e m e nt o f t a x de du c te d a t s ou rc e w hi c h ha s be e n a me nd ed by t he F i na n ce A c t , 20 1 5 w . e . f. 0 1. 06 . 2 01 5 a n d n ew c la us e s (c ) a n d ( d) ha s b e e n i n s e r t e d i n S e c t i o n 2 00 A o f t he A c t . B y vi r t u e o f s uc h a m e nd m e nt , w hi le p ro c e ss i n g o f T D S st a t e me n t, t h e l at e fe e i f an y, sh a l l b e c o m pu t ed i n a c c o r da n ce w it h p r ov i si o n s o f S ec t i on 23 4 E o f th e A ct . A s a c o r ol l a ry, pr i o r t o am e nd m e nt u n de r S ec t i on 20 0A o f t h e A ct , l e v y o f f e e un d e r S e c ti o n 2 34 E d ur i n g pr o c e ss i n g o f TD S st a te m e n t i s no t t e n a bl e . 5. S i nc e t h e a me n d me nt ha s b ee n i ns e r t e d u nd er Se c tio n 2 0 0 A o f t he A c t w . e. f. 0 1. 0 6 . 2 01 5, t h e de fa ul t c o m mi t t ed by t he a ss e s se e , i f a ny, pr i o r t o t he a m e n d m e n t w i l l n o t a tt ra c t fe e u nd e r S e c t i o n 2 3 4E o f t h e A c t . 6. T he ca p ti on e d a p p e al i nv o l vi ng l e v y o f la t e f il ing f e e un de r S ec t i on 2 3 4E a r e i n re l at i o n t o p er i o d p ri or t o 0 1.0 6 . 20 1 5 . T hu s, l a t e I.T.As No.2962 & 2963/Del/2018 3 fi l i n g fe e u n de r S e ct i on 2 34 E i s c on t r ar y t o t he l eg i sl a t i v e m a n d a t e. Th e C o- o r di n at e B e n c h o f D e l h i I TA T in t h e c as e o f R a j V ee r S i ng h vs. A CI T- CP C- T D S I T A N o . 368 1/ D e l / 2 0 1 7 o rd er da te d 09. 07 . 2 02 1 a nd ma ny o t h e r s h a v e d e c i d e d t h e i s su e i n fa vo ur o f t he a ss e s se e i n si mi l ar c i r c u mst a n c e s. 7. S i nc e t h e d e m a n d u n d er c h a r gi n g S e c ti o n 2 3 4 E fo r la t e fi l in g o f T D S r e t u r n a r i s i ng fr o m b el a t ed T D S st a t e m e nt s fi l e d pr i o r t o 01 . 0 6. 2 0 1 5 , t he i m p u g ne d l a t e fe e i m p o se d re qu i r e s t o b e d el e t ed . 8. T hi s b ei n g so , w e d o n ot c o n s id er i t ne c e s sa ry to g o t o o t h e r a sp e c t s o f t he c a se suc h a s d ou bl e pa y m e n t ma de b y t h e a sse ss ee . 9. I n t h e re s ul t , th e a p p e a l o f th e a s se ss e e i s a l lo w ed . IT A N o. 29 63 / D e l /2 01 8 (A sse ss m e n t Y e a r 2 0 1 5 - 16 ) 10 . T he fa c t s a re i de nt i ca l t o IT A N o . 29 6 2/ D e l/ 20 18 f or l e vy o f fe e o f R s. 21, 6 02/ - u n de r ch al l e ng e . T h e ob se r v a t i ons ma de i n I TA N o. 29 6 2/ D e l /2 01 8 sh a ll ap pl y m u t a t i s m u ta nd i s a n d t he r e fo re , t he l at e f il i n g fe e u n d e r S e ct i on 2 3 4 E s ha l l no t a pp l y i n t h e p r es e n t a pp e a l t oo. Th e l at e fi l i ng fe e u n de r S e ct i on 23 4E i s t h u s c a n c e l l e d e x- pa rt e. 11 . I n t he r e s ul t, bo t h th e c a p t i o n e d a pp e a l s o f t he a s se ss e e a r e a ll ow e d. Order pronounced in the open Court on 07/03/2023. Sd/- Sd/- [CHANDRA MOHAN GARG] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /03/2023 Prabhat