State Bank of India (Bhilad Branch), Valsad V. The Asstt. Commissioner of Income Tax, CPC Ghaziabad, Gaziabad

ITA 3226/AHD/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 5752 (ITAT-AHMEDABAD)
• Duration Of Justice: 7 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-07-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2013-2014
• Appeal Filed On: 05-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S MUDIT NAGPAL
• Assessee Lawyers: GAURANG BAROT
• Keywords: Condonation of delay
• Section: 32; 11

Judgement Text

I.T.A. NO S . 3226 TO 3267/AHD/2016 STATE BANK OF INDIA GROUP CASE PAGE 1 OF 14 IN THE INCOME TAX APPELLATE TRIBUNAL, AHMEDABAD SMC BENCH, AHMEDABAD [CORAM : PRAMOD KUMAR AM ] I.T.A. NO S . 3226 & 3227/ AHD/2016 ASSESSMENT Y EAR S : 20 13 - 14 & 2014 - 15 STATE BANK OF INDIA (BHILAD BRANCH) ............APPELLANT BHILAD BRANCH, V RUNDA VAN BUILDING, BHILAD 396 105 DIST. VALSAD (GUJARAT) [PAN: A AACS 8577 K ] VS ASSISTANT COMMISSIONER OF INCOME TAX, CPC, GHAZIABAD. ...........RESPONDENT I.T.A. NO S . 3228 & 3229/AHD/2016 ASSESSMENT Y EAR S : 2013 - 14 & 20 14 - 15 STATE BANK OF INDIA ( UMBERGAON TOWN ) ............APPELLANT UMBERGAON TOWN BRANCH, SHRI GOPAL KRUPA, UMBERGAON 396 170 DIST. VALSAD (GUJARAT) [PAN: AAACS 8577 K ] VS ASSISTANT COMMISSIONER OF INCOME TAX, CPC, GHAZIABAD. ...........RESPONDE NT I.T.A. NO S . 3230 & 3231/AHD/2016 ASSESSMENT Y EAR S : 2013 - 14 & 20 14 - 15 STATE BANK OF INDIA ( GUNDLAV TOWN) ............APPELLANT GUNDLAV BRANCH, PLOT NO.124/1 - A IND. ESTATE, GUNDLAV 396 035. DIST. VALSAD ( GUJARAT) [PAN: AAACS 8577 K ] VS A SSISTANT COMMISSIONER OF INCOME TAX, CPC, GHAZIABAD. ...........RESPONDENT I.T.A. NO S . 3226 TO 3267/AHD/2016 STATE BANK OF INDIA GROUP CASE PAGE 2 OF 14 I.T.A. NO S . 3232 & 3233/AHD/2016 ASSESSMENT Y EAR S : 2013 - 14 & 20 14 - 15 STATE BANK OF INDIA (ATGAM BRANCH) ............APPELLANT ATGAM BRANCH, ATGAM 39 6 0 4 5. DIST. VALSAD (GUJARAT) [PAN: AAACS 8577 K ] VS ASSISTANT COMMISSIONER OF INCOME TAX, CPC, GHAZIABAD. ...........RESPONDENT I.T.A. NO S . 3234 , 3235 & 3236 /AHD/2016 ASSESSMENT Y EAR S : 2013 - 14 , 20 14 - 15 & 2015 - 16 STATE BANK OF INDIA ( KAPRADA BRANCH) ............APPELLANT KAPRADA BRANCH, BAZAR KAPRADA KAPRADA 396 126 . DIST. VALSAD (GUJARAT) [PAN: AAACS 8577 K ] VS ASSISTANT COMMISSIONER OF INCOME TAX, CPC, GHAZIABAD. ...........RESPONDENT I.T.A. NO S . 3237 & 3238/AHD/2016 ASSESSMENT Y EAR S : 201 4 - 1 5 & 20 1 5 - 16 STATE BANK OF INDIA ( DUNGRI BRANCH) ............APPELLANT DUNGRI BRANCH, NEAR RAILWAY STATION, DUNGRI 396 0 20 . DIST. VALSAD (GUJARAT) [PAN: AAACS 8577 K ] VS ASSISTANT COMMISSIONER OF IN COME TAX, CPC, GHAZIABAD. ...........RESPONDENT I.T.A. NO S . 3239 & 3240/AHD/2016 ASSESSMENT Y EAR S : 2013 - 14 & 20 14 - 15 STATE BANK OF INDIA ( CHANVI BRANCH) ............APPELLANT CHANVI BRANCH , DESAI FALIA V I A ATUL, CHANVI 396 0 20. DIST. VALSAD (GUJARAT) [PAN: AAACS 8577 K ] I.T.A. NO S . 3226 TO 3267/AHD/2016 STATE BANK OF INDIA GROUP CASE PAGE 3 OF 14 VS ASSISTANT COMMISSIONER OF INCOME TAX, CPC, GHAZIABAD. ...........RESPONDENT I.T.A. NO S . 3241, 3242 & 3243/AHD/2016 ASSESSMENT Y EAR S : 2013 - 14, 20 14 - 15 & 2015 - 16 STATE BANK OF INDIA ( DEHG AM BRANCH) ............APPELLANT DEHGAM BRANCH, DEHGAM 396 060 . DIST. VALSAD (GUJARAT) [PAN: AAACS 8577 K ] VS ASSISTANT COMMISSIONER OF INCOME TAX, CPC, GHAZIABAD. ...........RESPONDENT I.T.A. NO S . 3244 & 3245/AHD/2016 AS SESSMENT Y EAR S : 2013 - 14 & 20 14 - 15 STATE BANK OF INDIA (NANAPO N DHA BRANCH) ............APPELLANT NANAPO N DHA BRANCH, OKIT BI 910 LUHAR FALIA, NANAPONDHA 396 126. DIST. VALSAD (GUJARAT) [PAN: AAACS 8577 K ] VS ASSISTANT COMMISSIONER OF INCOME TAX, CPC, GHAZIABAD. ...........RESPONDENT I.T.A. NO S . 3246 & 3247/AHD/2016 ASSESSMENT Y EAR S : 2013 - 14 & 20 14 - 15 STATE BANK OF INDIA (RBO BRANCH) ............APPELLANT RBO BRANCH, REGIONAL BUSINESS OFFICE , VALSAD 396 001. DIST. VALSAD (GUJARAT) [PAN: AAACS 8577 K ] VS ASSISTANT COMMISSIONER OF INCOME TAX, CPC, GHAZIABAD. ...........RESPONDENT I.T.A. NO S . 3226 TO 3267/AHD/2016 STATE BANK OF INDIA GROUP CASE PAGE 4 OF 14 I.T.A. NO S . 3248 & 3249/AHD/2016 ASSESSMENT Y EAR S : 2013 - 14 & 20 14 - 15 STATE BANK OF INDIA (NANI DAMAN BRANCH) ............APPELLANT NANI DAMAN BRANCH, KAVI KHABARDAR ROAD, NANI DAMAN 396 210. DIST. DAMAN DAMAN AND DIU. [PAN: AAACS 8577 K ] VS ASSISTANT COMMISSIONER OF INCOME TAX, CPC, GHAZIABAD. ...........RESPONDENT I.T.A. NO S . 3250 & 3251/AHD/2016 ASSESSMENT Y EAR S : 2013 - 14 & 20 14 - 15 STATE BANK OF INDIA (WAGHAI BRANCH) ............APPELLANT WAGHAI BRANCH, 1 ST FL O OR APMC MARKET, WAGHAI 396 105. DIST. VALSAD (GUJARAT). [PAN: AAACS 8577 K ] VS ASSISTANT COMMISSIONER OF I NCOME TAX, CPC, GHAZIABAD. ...........RESPONDENT I.T.A. NO S . 3252 & 3253/AHD/2016 ASSESSMENT Y EAR S : 2013 - 14 & 20 14 - 15 STATE BANK OF INDIA (BHADELI BRANCH) ............APPELLANT BHADELI BRANCH, BHADELI , DIST. VALSAD (GUJARAT). [PAN: AAACS 8577 K ] VS ASSISTANT COMMISSIONER OF INCOME TAX, CPC, GHAZIABAD. ...........RESPONDENT I.T.A. NO S . 3254 & 3255/AHD/2016 ASSESSMENT Y EAR S : 2013 - 14 & 20 15 - 16 STATE BANK OF INDIA ( UDWADA R.S. BRANCH) ............APPE LLANT UDWADA R.S. BRANCH, DIST. VALSAD (GUJARAT). [PAN: AAACS 8577 K ] I.T.A. NO S . 3226 TO 3267/AHD/2016 STATE BANK OF INDIA GROUP CASE PAGE 5 OF 14 VS ASSISTANT COMMISSIONER OF INCOME TAX, CPC, GHAZIABAD. ...........RESPONDENT I.T.A. NO S . 3256 & 3257/AHD/2016 ASSESSMENT Y EAR S : 2014 - 15 & 20 15 - 16 STATE BANK OF INDIA (DADRA BRANCH) ............APPELLANT DADRA BRANCH, RAS AVENUE, OPP. LEE ROYAL HOTEL, NEAR DADRA GARDEN, DADRA 396 193. [PAN: AAACS 8577 K ] VS ASSISTANT COMMISSIONER OF INCOME TAX, CPC, GHAZIABAD. ...........RESPONDENT I.T .A. NO S . 3258, 3259 & 3260/AHD/2016 ASSESSMENT Y EAR S : 2013 - 14, 20 14 - 15 & 2015 - 16 STATE BANK OF INDIA (DHARAMPUR BRANCH) ............APPELLANT DHARAMPUR BRANCH, JAIL ROAD, DHARAMPUR 396 050. DIST. VALSAD (GUJARAT) [PAN: AAACS 8577 K ] VS AS SISTANT COMMISSIONER OF INCOME TAX, CPC, GHAZIABAD. ...........RESPONDENT I.T.A. NO S . 32 61 & 32 62 /AHD/2016 ASSESSMENT Y EAR S : 2013 - 14 & 20 1 4 - 15 STATE BANK OF INDIA ( MAGOD BRANCH) ............APPELLANT MAGOD BRANCH, MAGOD MANDIR, MAGOD 396 020. DIST. VALSAD (GUJARAT). [PAN: AAACS 8577 K ] VS ASSISTANT COMMISSIONER OF INCOME TAX, CPC, GHAZIABAD. ...........RESPONDENT I.T.A. NO S . 3226 TO 3267/AHD/2016 STATE BANK OF INDIA GROUP CASE PAGE 6 OF 14 I.T.A. NO S . 3263 & 3264/AHD/2016 ASSESSMENT Y EAR S : 2013 - 14 & 20 14 - 15 STATE BANK OF INDIA (UMBE RGAON GIDC ) ............APPELLANT UMBERGAON GIDC BRANCH, PLOT NO.210 GIDC ESTATE, UMBERGAON 396 17 1 DIST. VALSAD (GUJARAT) [PAN: AAACS 8577 K ] I.T.A. NO S . 3265, 3266 & 3267/AHD/2016 ASSESSMENT Y EAR S : 2013 - 14, 20 14 - 15 & 2015 - 16 STATE BANK OF INDIA (SARIGAM BRANCH) ............APPELLANT SARIGAM BRANCH, BRAHMIN STREET, CHANVI 396 155. DIST. VALSAD (GUJARAT) [PAN: AAACS 8577 K ] VS ASSISTANT COMMISSIONER OF INCOME TAX, CPC, GHAZIABAD. ...........RESPONDENT APPEAR ANCES BY: GAURANG BAROT FOR THE APPELLANT S MUDIT NAGPAL FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : 04.07 .2017 DATE OF PRONOUNCING THE ORDER : 05 .0 7 . 2017 O R D E R 1. THESE 42 APPEALS INVOLVE A COMMON ISSUE ARIS ING OUT OF SIMIL AR FACTS AND WERE HEARD TOGETHER. AS A MATTER OF CONVENIENCE , THEREFORE , ALL THESE APPEALS ARE BEING DISPOSED OF BY WAY OF THIS COMMON ORDER. 2. THE ORDERS IMPUGNED IN THESE APPEALS ARE AS FOLLOWS : - ITA NO. A.Y. ORDER PASSED BY DATED 3226/AHD/2016 2013 - 14 CIT(A), VALSAD 15.04.2016 3227/AHD/2016 2014 - 15 - DO - - DO - 3228/AHD/2016 2013 - 14 - DO - - DO - 3229/AHD/2016 2014 - 15 - DO - - DO - 3230/AHD/2016 2013 - 14 - DO - - DO - 3231/AHD/2016 2014 - 15 - DO - - DO - I.T.A. NO S . 3226 TO 3267/AHD/2016 STATE BANK OF INDIA GROUP CASE PAGE 7 OF 14 3232/AHD/2016 2013 - 14 - DO - - DO - 3233 /AHD/2016 2014 - 15 - DO - - DO - 3234/AHD/2016 2013 - 14 - DO - - DO - 3235/AHD/2016 2014 - 15 - DO - - DO - 3236/AHD/2016 2015 - 16 - DO - - DO - 3237/AHD/2016 2014 - 15 - DO - - DO - 3238/AHD/2016 2015 - 16 - DO - - DO - 3239/AHD/2016 2013 - 14 - DO - - DO - 3 240/AHD/2016 2014 - 15 - DO - - DO - 3241/AHD/2016 2013 - 14 - DO - - DO - 3242/AHD/2016 2014 - 15 - DO - - DO - 3243/AHD/2016 2015 - 16 - DO - - DO - 3244/AHD/2016 2013 - 14 - DO - - DO - 3245/AHD/2016 2014 - 15 - DO - - DO - 3246/AHD/2016 2013 - 14 - DO - - DO - 3247/AHD/2016 2014 - 15 - DO - - DO - 3248/AHD/2016 2013 - 14 - DO - - DO - 3249/AHD/2016 2014 - 15 - DO - - DO - 3250/AHD/2016 201 3 - 14 - DO - - DO - 3251/AHD/2016 2014 - 15 - DO - - DO - 3252/AHD/2016 2013 - 14 - DO - - DO - 3253/AHD/2016 2014 - 15 - DO - - D O - 3254/AHD/2016 2013 - 14 - DO - - DO - 3255/AHD/2016 2015 - 16 - DO - - DO - 3256/AHD/2016 2014 - 15 - DO - - DO - 3257/AHD/2016 2015 - 16 - DO - - DO - 3258/AHD/2016 2013 - 14 - DO - - DO - 3259/AHD/2016 2014 - 15 - DO - - DO - 3260/AHD/2016 2015 - 16 - DO - - DO - 3261/AHD/2016 2013 - 14 - DO - - DO - 3262/AHD/2016 2014 - 15 - DO - - DO - 3263/AHD/2016 2013 - 14 - DO - - DO - 3264/AHD/2016 2014 - 15 - DO - - DO - 3265/AHD/2016 2013 - 14 - DO - - DO - 3266/AHD/2016 201 4 - 1 5 - DO - - DO - 3267/AHD/2016 2015 - 16 - DO - - DO - 3 . THE COMMON GRIEVANCE IN THE IMPUGNED APPEALS IS AGAINST (I) THE LEARNED CIT(A) S NOT CONDONING THE DELAY AND PROCEEDING TO DISMISS THE APPEALS SUMMARILY ; AND (II) AGAINST LEARNED C I T(A ) S N OT HOLDING THAT THE IMPUGNED LEVY OF FEES UNDER SEC TION 234E OF THE INCOME TAX ACT, 1961, BY WAY OF INTIMATION UNDER SECTION 200A WAS BAD IN LAW AND LIAB LE TO BE QUASHED. I.T.A. NO S . 3226 TO 3267/AHD/2016 STATE BANK OF INDIA GROUP CASE PAGE 8 OF 14 4 . THE APPEALS BEFORE ME ARE TIME BARED BY 119 DAYS. THE ASSESS E ES HAVE MOVED PETITION SEEKING CONDONATION OF DELAY. IT IS ST A TED THA T THE PROCESS FOR FILING APPEAL REQUIRED APPROVAL OF THE HIGHER AUTHORITIES S INCE TAXATION MATTERS ARE NOT DEALT BY THE ASSESSEES AT BRANCH LEVEL, AND THE IMPUGNED ORDERS LEVYING FEE UNDER SECTION 234E OF THE ACT WERE PASSED ON ASSESSEES , WHICH ARE BRANCHE S OF A NATIONAL ISED BANK. IT IS ALSO SUBMITTED THAT THE DELAY W A S CAUSED IN INTERNAL PROCESSING SINCE IT WAS FOR THE FIRST TIME THAT THE ASSESSEE BRANCHES ARE DEALING WITH TAX APPEALS. THE ASSESSEE HAS SUBMITTED THAT THE DELAY IS UNINTENTIONAL , ON ACCOUN T OF FACTORS BEYO N D THE CONTROL OF THE ASSESSEE B RANCHES , AND W A S MAINLY ON ACCOUNT OF THE FACT THAT A T BRANCH LEVEL THE MATTERS REGARDING TAXATION AND APPELLATE PROCEDURES ARE NOT DEALT WITH. IT IS PRAYED THAT THE DELAY BE CONDONED AND THE MATTER BE DECID E D ON MERITS. THE ASSESSEE FURTHER SUBMITS THA T THE ASSESS E E H A S A STRONG PRIMA FACIE CASE INASMUCH AS THE ISSUE IN APPEAL IS DIRECTLY COVERED BY SEVERAL DECISIONS OF DIVISION BENCHES OF THIS TRIBUNAL INCLUDING THE CASE OF SIBIA HEALTHCARE PRIVATE LIMITED VS. DCIT [(2015) 46 ITR (TRIB) 453 (ASR)] . 5 . LEARNED DEPARTMENTAL REPRESENTATIVE DOES NOT VEHEMENTLY OPPOSE THE APPLICATION FOR CONDONATION OF DELAY BUT SUBMITS THAT MY CONDONING THIS KIND OF LAXITY ON THE PART OF THE ASSESSEE WILL ONLY BE INCENTIVIZING CARELESSNESS. 6 . HAVING CONSIDERED THE R IVAL CONTENTIONS AND HAVING PERUS ED THE MATERIAL ON RECORD , I AM INCLINED TO CONDONE THE DELAY , SINCE BEYOND CONTROVERSY THE BRANCHES OF THE N ATIONALISED B ANK S , WHICH ARE APPELLA NTS BEFORE ME , ARE NOT CONVERS ANT WITH THE APPELLATE PROCEDU RES AND ARE TOTALLY DEPENDENT ON APPROVAL AND GUIDELINES OF THEIR HIGHER OFFICES. I CONDONE THE DELAY AND PROCEED TO TAKE UP THE SE APP E ALS ON MERITS. I.T.A. NO S . 3226 TO 3267/AHD/2016 STATE BANK OF INDIA GROUP CASE PAGE 9 OF 14 7 . BRIEFLY STATED , THE RELEVANT MATERIAL FACTS ARE LIKE THIS. THERE IS A DMITTEDLY DELAY IN FILING OF TDS RETURNS BY THE ASSESSE E S AND IT IS FOR THIS DELAY THAT THE A SSESSING OFFICER HAS LEVI E D FEE UNDER SECTION 234E OF THE ACT BY WAY OF INTIMATION UNDER SECTION 200A. THE MATTER WAS TAKEN UP IN APPEAL AND IT WAS EXPLAINED BY T HE ASSESSEES TH A T SECTION 200A , AS IT STOOD AT TH E REL E VANT POINT OF TIME , DID NOT PERMIT LEVY OF FEE UNDER S ECTION 234E AND , T HEREFORE , THE FEE SO LEVIED IN TH E COURSE OF PROCESSING OF RETURN UNDER SECTION 200A IS BAD IN LAW. WHEN THIS PLEA S W ERE RAISED BY TH E ASSESSEE S BEFORE T HE LEARNED CIT(A), THE LEARNED CIT(A) DECLINED TO DEAL WITH THE MATTER ON MERITS SINCE THE APPEALS BEFORE THE LEARNED CIT(A) WERE DELAYED AND THE LEARNED CIT(A) DID NOT FIND IT APPROPRIATE TO CONDONE THE DELAY. IN THE IMPUGNED ORD ERS, TH E LEARNED CIT(A) HAS DISMISSED THE APPEALS A S TIME BARR E D WITHOUT ADJUDICATING ON MERITS. THE ASSES SE E S ARE AGGRIEVED AND ARE IN APPEAL B E FORE THE TRIBUNAL. 8 . I HAVE HEARD THE RIVAL CONTENTIONS, PERUSED THE MATERIAL ON RECORD AND DULY CONSIDERE D FACTS OF THE CASE IN THE LIGHT OF APPLICABLE LEGAL POSITION. 9 . GIVEN THE FACT THAT, AS I HAVE NOTED EARLIER ALSO, T HE TAXATION AND APPELLATE MATTERS ARE NOT ROUTINE LY DEALT BY THE BRANCHES OF NATIONALISED BANKS AND GIVEN FACTS THAT IT WAS IN ONE O F F SI TUATION BEING HANDLED BY THE BRA NCHES , I N MY CONSIDERED OPINION, THE LEARNED CIT(A) OUGHT TO H A VE TAKEN LENIENT VIEW OF THE MATTER AND CONDONED THE DELAY IN FILING THESE APPEALS. IT IS ALSO IMPORTANT TO BEAR IN MIND THE F ACT THAT THE ASSESSEE HAD A STRONG PRIMA F ACIE CASE AND THE MATTER WAS SAID TO BE COVER E D BY A SERIES OF ORDERS PASSE D BY THE T RIBUNAL . THE EXPLANATION OF THE ASSESSEE WAS JUSTIFIED, REASONABLE AND BONAFIDE. I N THESE CIRCUMSTANCES , I DEE M IT FIT AND PROPER TO VACATE T HE STAND OF THE LEAR NED FIRST APPELLATE AUTHORITY IN T HE IMPUGNED ORDERS AND HOLD THAT I.T.A. NO S . 3226 TO 3267/AHD/2016 STATE BANK OF INDIA GROUP CASE PAGE 10 OF 14 APPEALS SHOULD HAVE BEEN DISPOSED OF ON MERITS. AS FAR AS MERITS OF THE CASES ARE CONCERNED , AS RIGHTLY POINT E D OUT BY THE L EARNED COUNSEL, THE ISSUE IS SQU A RELY COVER E D IN FAVOUR OF THE A SS E SS E E BY A LARGE NUMBER OF DECISIO N S OF THIS T RIBUNAL INCLUDING SIBIA HEALTHCARE PRIVATE LIMITED VS. DCIT (SUPRA) , WHERE THE T RIBUNAL HAS, INTER ALIA , OBSERVED AS FOLLOWS : - 4. WE HAVE HEARD THE RIVAL CONTENTIONS, PERUSED THE MATERIAL ON RECORD AND DU LY CONSIDERED FACTS OF THE CASE IN THE LIGHT OF THE APPLICABLE LEGAL POSITION. IN ADDITION TO HIS ARGUMENT ON THE MERITS, LEARNED COUNSEL HAS ALSO INVITED OUR ATTENTION TO THE REPORTS ABOUT THE DECISIONS OF VARIOUS HON BLE HIGH COURTS, INCLUDING HON BLE KE RALA HIGH COURT, IN THE CASE OF NARATH MAPILA LP SCHOOL VS UNION OF INDIA [WP (C) 31498/2013(J)], HON BLE KARANATAKA HIGH COURT IN THE CASE OF ADITHYA BIZOR P SOLUTIONS VS UNION OF INDIA [WP NO. 6918 - 6938/2014(T - IT), HON BLE RAJASTHAN HIGH COURT IN THE CAS E OF OM PRAKASH DHOOT VS UNION OF INDIA [WP NO. 1981 OF 2014] AND OF HON BLE BOMBAY HIGH COURT IN THE CASE OF RASHMIKANT KUNDALIA VS UNION OF INDIA [WP NO. 771 OF 2014], GRANTING STAY ON THE DEMANDS RAISED IN RESPECT OF FEES UNDER SECTION 234E. THE FULL TE XT OF THESE DECISIONS WERE NOT PRODUCED BEFORE US. HOWEVER, AS ADMITTEDLY THERE ARE NO ORDERS FROM THE HON BLE COURTS ABOVE RETRAINING US FROM OUR ADJUDICATION ON MERITS IN RESPECT OF THE ISSUES IN THIS APPEAL, AND AS, IN OUR HUMBLE UNDERSTANDING, THIS APP EAL REQUIRES ADJUDICATION ON A VERY SHORT LEGAL ISSUE, WITHIN A NARROW COMPASS OF MATERIAL FACTS, WE ARE PROCEEDING TO DISPOSE OF THIS APPEAL ON MERITS. 5. WE MAY PRODUCE, FOR READY REFERENCE, SECTION 234E OF THE ACT, WHICH WAS INSERTED BY THE FINANCE AC T 2012 AND WAS BROUGHT INTO EFFECT FROM 1ST JULY 2012. THIS STATUTORY PROVISION IS AS FOLLOWS: 234E. FEE FOR DEFAULTS IN FURNISHING STATEMENTS (1) WITHOUT PREJUDICE TO THE PROVISIONS OF THE ACT, WHERE A PERSON FAILS TO DELIVER OR CAUSE TO BE DELIVERED A STATEMENT WITHIN THE TIME PRESCRIBED IN SUB - SECTION (3) OF SECTION 200 OR THE PROVISO TO SUBSECTION (3) OF SECTION 206C, HE SHALL BE LIABLE TO PAY, BY WAY OF FEE, A SUM OF TWO HUNDRED RUPEES FOR EVERY DAY DURING WHICH THE FAILURE CONTINUES. (2) THE AMOUN T OF FEE REFERRED TO IN SUB - SECTION (1) SHALL NOT EXCEED THE AMOUNT OF TAX DEDUCTIBLE OR COLLECTIBLE, AS THE CASE MAY BE. (3) THE AMOUNT OF FEE REFERRED TO IN SUB - SECTION (1) SHALL BE PAID BEFORE DELIVERING OR CAUSING TO BE DELIVERED A STATEMENT IN ACCORD ANCE WITH SUB - SECTION (3) OF SECTION 200 OR THE PROVISO TO SUB - SECTION (3) OF SECTION 206C. (4) THE PROVISIONS OF THIS SECTION SHALL APPLY TO A STATEMENT REFERRED TO IN SUB - SECTION (3) OF SECTION 200 OR THE PROVISO TO SUB - SECTION (3) I.T.A. NO S . 3226 TO 3267/AHD/2016 STATE BANK OF INDIA GROUP CASE PAGE 11 OF 14 OF SECTION 206C WHICH IS TO BE DELIVERED OR CAUSED TO BE DELIVERED FOR TAX DEDUCTED AT SOURCE OR TAX COLLECTED AT SOURCE, AS THE CASE MAY BE, ON OR AFTER THE 1ST DAY OF JULY, 2012. 6. WE MAY ALSO REPRODUCE THE SECTION 200A WHICH WAS INSERTED BY THE FINANCE ACT 2009 WITH EFFE CT FROM 1ST APRIL 2010. THIS STATUTORY PROVISION, AS IT STOOD AT THE RELEVANT POINT OF TIME, WAS AS FOLLOWS: 200A: PROCESSING OF STATEMENTS OF TAX DEDUCTED AT SOURCE (1) WHERE A STATEMENT OF TAX DEDUCTION AT SOURCE, OR A CORRECTION STATEMENT, HAS BEEN MA DE BY A PERSON DEDUCTING ANY SUM (HEREAFTER REFERRED TO IN THIS SECTION AS DEDUCTOR) UNDER SECTION 200, SUCH STATEMENT SHALL BE PROCESSED IN THE FOLLOWING MANNER, NAMELY: (A) THE SUMS DEDUCTIBLE UNDER THIS CHAPTER SHALL BE COMPUTED AFTER MAKING THE FOLLO WING ADJUSTMENTS, NAMELY: (I) ANY ARITHMETICAL ERROR IN THE STATEMENT; OR (II) AN INCORRECT CLAIM, APPARENT FROM ANY INFORMATION IN THE STATEMENT; (B) THE INTEREST, IF ANY, SHALL BE COMPUTED ON THE BASIS OF THE SUMS DEDUCTIBLE AS COMPUTED IN THE STATEM ENT; (C) THE SUM PAYABLE BY, OR THE AMOUNT OF REFUND DUE TO, THE DEDUCTOR SHALL BE DETERMINED AFTER ADJUSTMENT OF AMOUNT COMPUTED UNDER CLAUSE (B) AGAINST ANY AMOUNT PAID UNDER SECTION 200 AND SECTION 201, AND ANY AMOUNT PAID OTHERWISE BY WAY OF TAX OR IN TEREST; (D) AN INTIMATION SHALL BE PREPARED OR GENERATED AND 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 PURSUANCE OF THE D ETERMINATION UNDER CLAUSE (C) SHALL BE GRANTED TO THE DEDUCTOR: 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 WHICH THE STATEMENT IS FILED. EXPLANATION : FOR THE PURP OSES 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 S TATEMENT; (II) IN RESPECT OF RATE OF DEDUCTION OF TAX AT SOURCE, WHERE SUCH RATE IS NOT IN ACCORDANCE WITH THE PROVISIONS OF THIS ACT; I.T.A. NO S . 3226 TO 3267/AHD/2016 STATE BANK OF INDIA GROUP CASE PAGE 12 OF 14 (2) FOR THE PURPOSES OF PROCESSING OF STATEMENTS UNDER SUB - SECTION (1), THE BOARD MAY MAKE A SCHEME FOR CENTRALISED PRO CESSING OF STATEMENTS OF TAX DEDUCTED AT SOURCE TO EXPEDITIOUSLY DETERMINE THE TAX PAYABLE BY, OR THE REFUND DUE TO, THE DEDUCTOR AS REQUIRED UNDER THE SAID SUBSECTION. 7. BY WAY OF FINANCE ACT 2015, AND WITH EFFECT FROM 1ST JUNE 2015, THERE IS AN AMENDME NT IN SECTION 200A AND THIS AMENDMENT, AS STATED IN THE FINANCE ACT 2015, IS AS FOLLOWS: IN SECTION 200A OF THE INCOME - TAX ACT, IN SUB - SECTION (1), FOR CLAUSES (C) TO (E), THE FOLLOWING CLAUSES SHALL BE SUBSTITUTED WITH EFFECT FROM THE 1 ST DAY OF JUNE, 20 15, NAMELY: (C) THE FEE, IF ANY, SHALL BE COMPUTED IN ACCORDANCE WITH THE PROVISIONS OF SECTION 234E; (D) THE SUM PAYABLE BY, OR THE AMOUNT OF REFUND DUE TO, THE DEDUCTOR SHALL BE DETERMINED AFTER ADJUSTMENT OF THE AMOUNT COMPUTED UNDER CLAUSE (B) AND CLAUSE (C) AGAINST ANY AMOUNT PAID UNDER SECTION 200 OR SECTION 201 OR SECTION 234E AND ANY AMOUNT PAID OTHERWISE BY WAY OF TAX OR INTEREST OR FEE; (E) AN INTIMATION SHALL BE PREPARED OR GENERATED AND SENT TO THE DEDUCTOR SPECIFYING THE SUM DETERMINED TO BE PAYABLE BY, OR THE AMOUNT OF REFUND DUE TO, HIM UNDER CLAUSE (D); AND (F) THE AMOUNT OF REFUND DUE TO THE DEDUCTOR IN PURSUANCE OF THE DETERMINATION UNDER CLAUSE (D) SHALL BE GRANTED TO THE DEDUCTOR. 8. IN EFFECT THUS, POST 1ST JUNE 2015, IN THE COUR SE OF PROCESSING OF A TDS STATEMENT AND ISSUANCE OF INTIMATION UNDER SECTION 200A IN RESPECT THEREOF, AN ADJUSTMENT COULD ALSO BE MADE IN RESPECT OF THE FEE, IF ANY, SHALL BE COMPUTED IN ACCORDANCE WITH THE PROVISIONS OF SECTION 234E . THERE IS NO DISPUTE THAT WHAT IS IMPUGNED IN APPEAL BEFORE US IS THE INTIMATION UNDER SECTION 200A OF THE ACT, AS STATED IN SO MANY WORDS IN THE IMPUGNED INTIMATION ITSELF, AND, AS THE LAW STOOD, PRIOR TO 1ST JUNE 2015, THERE WAS NO ENABLING PROVISION THEREIN FOR RAISING A D EMAND IN RESPECT OF LEVY OF FEES UNDER SECTION 234E. WHILE EXAMINING THE CORRECTNESS OF THE INTIMATION UNDER SECTION 200A, WE HAVE TO BE GUIDED BY THE LIMITED MANDATE OF SECTION 200A, WHICH, AT THE RELEVANT POINT OF TIME, PERMITTED COMPUTATION OF AMOUNT RE COVERABLE FROM, OR PAYABLE TO, THE TAX DEDUCTOR AFTER MAKING THE FOLLOWING ADJUSTMENTS: (A). AFTER MAKING ADJUSTMENT ON ACCOUNT OF ARITHMETICAL ERRORS AND INCORRECT CLAIMS APPARENT FROM ANY INFORMATION IN THE STATEMENT - SECTION 200A(1)(A) (B). AFTER MAKING ADJUSTMENT FOR INTEREST, IF ANY, COMPUTED ON THE BASIS OF SUMS DEDUCTIBLE AS COMPUTED IN THE STATEMENT . - SECTION 200A(1)(B) I.T.A. NO S . 3226 TO 3267/AHD/2016 STATE BANK OF INDIA GROUP CASE PAGE 13 OF 14 9. NO OTHER ADJUSTMENTS IN THE AMOUNT REFUNDABLE TO, OR RECOVERABLE FROM, THE TAX DEDUCTOR, WERE PERMISSIBLE IN ACCORDA NCE WITH THE LAW AS IT EXISTED AT THAT POINT OF TIME. 10 . IN VIEW OF THE ABOVE DISCUSSIONS, IN OUR CONSIDERED VIEW, THE ADJUSTMENT IN RESPECT OF LEVY OF FEES UNDER SECTION 234E WAS INDEED BEYOND THE SCOPE OF PERMISSIBLE ADJUSTMENTS CONTEMPLATED UNDER SEC TION 200A. THIS INTIMATION IS AN APPEALABLE ORDER UNDER SECTION 246A(A), AND, THEREFORE, THE CIT(A) OUGHT TO HAVE EXAMINED LEGALITY OF THE ADJUSTMENT MADE UNDER THIS INTIMATION IN THE LIGHT OF THE SCOPE OF THE SECTION 200A. LEARNED CIT(A) HAS NOT DONE SO. HE HAS JUSTIFIED THE LEVY OF FEES ON THE BASIS OF THE PROVISIONS OF SECTION 234E. THAT IS NOT THE ISSUE HERE. THE ISSUE IS WHETHER SUCH A LEVY COULD BE EFFECTED IN THE COURSE OF INTIMATION UNDER SECTION 200A. THE ANSWER IS CLEARLY IN NEGATIVE. NO OTHER PRO VISION ENABLING A DEMAND IN RESPECT OF THIS LEVY HAS BEEN POINTED OUT TO US AND IT IS THUS AN ADMITTED POSITION THAT IN THE ABSENCE OF THE ENABLING PROVISION UNDER SECTION 200A, NO SUCH LEVY COULD BE EFFECTED. AS INTIMATION UNDER SECTION 200A, RAISING A DE MAND OR DIRECTING A REFUND TO THE TAX DEDUCTOR, CAN ONLY BE PASSED WITHIN ONE YEAR FROM THE END OF THE FINANCIAL YEAR WITHIN WHICH THE RELATED TDS STATEMENT IS FILED, AND AS THE RELATED TDS STATEMENT WAS FILED ON 19TH FEBRUARY 2014, SUCH A LEVY COULD ONLY HAVE BEEN MADE AT BEST WITHIN 31ST MARCH 2015. THAT TIME HAS ALREADY ELAPSED AND THE DEFECT IS THUS NOT CURABLE EVEN AT THIS STAGE. IN VIEW OF THESE DISCUSSIONS, AS ALSO BEARING IN MIND ENTIRETY OF THE CASE, THE IMPUGNED LEVY OF FEES UNDER SECTION 234 E IS UNSUSTAINABLE IN LAW. WE, THEREFORE, UPHOLD THE GRIEVANCE OF THE ASSESSEE AND DELETE THE IMPUGNED LEVY OF FEE UNDER SECTION 234E OF THE ACT. THE ASSESSEE GETS THE RELIEF ACCORDINGLY. 10 . RESPECTFULLY FOLLOWING THE STAND SO TAKEN BY T HE TRIBUNAL IN THE A BOVE CASE, I HOLD THA T THE LEVY OF FEE UNDER SECTION 234E IN THE COUR SE O F PROCESSING UNDER S ECTION 200A W A S INDEED BAD IN LAW . I, THEREFORE , VACATE THE ORDERS OF THE AUTHORITIES BELOW , AND THE LEVY OF FEES UNDER SECTION 234E IN PROCESSING UNDER SECTION 2 00A THUS STANDS DELETED. THE A SSESSEE S GET THE RELIEF ACCORDINGLY. 1 1 . IN THE RESULT, ALL THESE A PPEAL S ARE ALLOWED. PR O NOUNCED IN THE OPEN COURT TODAY ON THE 5 TH DAY OF JU LY , 2017. SD/ - PRAMOD KUMAR (ACCOUNTANT MEMBER) DATED: AHMEDABAD, THE 5 TH DAY OF JU LY , 2017. I.T.A. NO S . 3226 TO 3267/AHD/2016 STATE BANK OF INDIA GROUP CASE PAGE 14 OF 14 COPIES TO : (1) THE APPELLANT (2) THE RESPONDENT (3) CIT (4) CIT(A) (5) DR (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AH MEDABAD BENCHES, AHMEDABAD