The Tata Rice Mills, Ferozepur V. The Assistant Commissioner of Income Tax, Ghaziabad

ITA 395/ASR/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 7747 (ITAT-AMRITSAR)
• Duration Of Justice: 2 year(s) 1 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-10-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Appeal Filed On: 14-09-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S S KANWAL LD
• Assessee Lawyers: Y K SUD LD

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR BEFORE SH. T.S. KAPOOR, ACCOUNTANT MEMBER AND SH. N.K.CHOUDHRY, JUDICIAL MEMBER I.T.A NO.395(ASR)/2016 ASSESSMENT YEAR:2014- 15 TATA RICE MILLS, TALWANDI ROAD, ZIRA, DIST: FEROZPUR. PAN:AMRT1-1029E VS. ASST. CIT, CENTRAL PROCESSING CELL-TDS, GAZIABAD. (APPELLANT) (RESPONDENT) APPELLANT BY: SH. Y.K. SUD, (LD. C.A.) RESPONDENT BY: SH. S.S. KANWAL (LD. DR) DATE OF HEARING: 18.10.2017. DATE OF PRONOUNCEMENT: 25.10.2017 ORDER PER N.K.CHOUDHRY: THE INSTANT APPEAL HAS BEEN PREFERRED BY THE ASSESSEE, ON FEELING AGGRIEVED AGAINST THE ORDER DATED 28.04.201 6 PASSED BY THE LD. CIT(A), BATHINDA, IN APPEAL NO.139-IT/CIT(A)/BT I/15-16 FOR ASST. YEAR:2014-15. 2. THE ASSESSEE RAISED THE FOLLOWING GROUNDS OF APPEAL. 1.) THAT THE CIT(A) WAS NOT JUSTIFIED IN UPHOLDING THE LATE FILING FEE OF RS.49,400/- LEVIED BY THE DCIT (TDS) CENTRAL PROCESS ING CELL U/S 234E. 2.) THAT THE CIT(A) FAILED TO APPRECIATE THAT THERE WAS NO POWER WITH THE DCIT, CENTRAL PROCESSING CELL, TDS TO LEVY SUCH LATE FILI NG FEE IN INTIMATION U/S 200A OF THE INCOME TAX ACT, 1961. 3.) THAT THE ORDERS OF THE DCIT & CIT(A) ARE AGAINS T THE LAW AND FACTS OF THE CASE. 3. THE BRIEF FACTS OF THE CASE ARE AS UNDER: ITA NO.395 (ASR)/2016 ASST. YEAR : 2014-15 2 THAT A PERSON DEDUCTING THE TAX AT SOURCE IS REQUIRED B Y SEC. 200(3) TO PREPARE AND FURNISH A STATEMENT IN ACCORD ANCE WITH THE RULE 31A WITHIN THE PRESCRIBED TIME. SEC.234 E OF THE ACT, W.E.F. 1 ST OF JANUARY, 2012, MAKES AN ASSESSEE LIABLE TO PAY, BY WAY OF FEE, A SUM OF RS.200/- FOR EVERYDAY OF DEFA ULT IN FILING A STATEMENT WITHIN THE TIME PRESCRIBED IN SEC.200(3). H OWEVER, THERE IS A CLAUSE THAT THE LATE FEE SHALL NOT EXCEED THE AMOUNT OF TAX DEDUCTIBLE AND THE AMOUNT OF FEE PAYABLE IS REQUI RED TO BE PAID BEFORE FILING THE STATEMENTS AND SEC.200A INSERTED BY THE FINANCE ACT (NO.2) ACT, 2009, W.E.F., 01.04.2010 PROV IDES FOR THE PROCESSING OF STATEMENT OF TDS, FURNISHED UNDER SECTIO N 200(3), TO ENABLE THE PROCESSOR TO ASCERTAIN THE CORRECTN ESS OF TDS AND IN DOING SO CARRY OUT PERMISSIBLE ADJUSTMENTS AND LEVY INTEREST FOR DELAY IN PAYMENT OF THE DEDUCTED TAX. TH E PROCESSOR IS ALSO REQUIRED TO PREPARE AND GENERATE AN INTIMATIO N OF THE SUM PAYABLE OR REFUNDABLE TO THE DEDUCTOR, AND SEND TH E SAME TO HIM. THESE PROVISIONS OF PROCESSING AND ISSUE OF INTIM ATION HAS BEEN MODIFIED W.E.F., 01.06.2015 TO PROVIDE FOR THE COMPUTATION OF THE FEE PAYABLE U/S 234E WHILE ISSUING A N INTIMATION. WHILE COMING TO THE INSTANT CASE, SECOND QUARTERLY STATEMENT RELEVANT TO THE FINANCIAL YEAR:2014-15 WAS FILED ON 19 TH JUNE, 2015 BY THE ASSESSEE WHICH WAS PROCESSED ON 23 RD JUNE, 2015 AND TDS, CPC LEVIED A LATE FEE OF RS.49,4 00/- WHILE ISSUING ORDER U/S 200A OF THE ACT WHICH WAS CHALLENGED B Y THE ASSESSEE BY FILING FIRST APPEAL BEFORE THE LD. CIT(A) WH O DISMISSED THE APPEAL OF THE ASSESSEE. 4. ON FEELING AGGRIEVED AGAINST THE ORDER PASSED BY THE LD. CIT(A), THE ASSESSEE PREFERRED THE INSTANT APPEAL AND IN SUPPORT OF ITS CASE ITA NO.395 (ASR)/2016 ASST. YEAR : 2014-15 3 SUBMITTED THAT THE LD. CIT(A) WAS NOT JUSTIFIED IN U PHOLDING THE LATE FILING FEE OF RS.49,400/- LEVIED BY THE DCIT, (TDS), CENTRAL PROCESSING CELL U/S 234 E. FURTHER FAILED TO APPRECIATE THAT T HERE IS NO POWER WITH THE AFORESAID AUTHORITY TO LEVY SUCH LATE FILING FEE I N INTIMATION U/S 200A OF THE I.T. ACT, 1961. THE LD. COUNSEL ALSO RELIE D UPON THE JUDGMENT PASSED BY THE HONBLE KARNATAKA HIGH COURT IN THE CASE OF FATHERAJ SINGHVI & ORS. VS. UNION OF INDIA & ORS. (201 6) 289 CTR (KAR) 602 AND SUBMITTED THAT IN THE SAID CASE THE HONBLE HIGH COURT HAS HELD THAT AMENDMENT MADE U/S 200A WHICH CAME INTO EFFE CT FROM 1 ST JUNE, 2015 IS HELD TO BE HAVING PROSPECTIVE EFFECT AND NO COMPUTATION OF FEE FOR THE DEMAND U/S 234E COULD BE MADE FOR THE TDS DEDUCTED FOR THE RESPECTIVE ASSESSMENT PRIOR TO 1 ST JUNE, 2015. THEREFORE, THE ASSESSEE IS ALSO ENTITLED TO GET THE SAME TREATMENT. 5. ON THE CONTRARY, THE LD. DR SUBMITTED THAT THE ORDER PASSED BY THE AUTHORITIES BELOW DOES NOT SUFFER FROM PERVERSITY, ILLEGALITY AND IMPROPRIETARY AS THE SAME HAVE BEEN PASSED UNDER THE PE CULIAR FACTS AND CIRCUMSTANCES OF THE CASE AND ALSO BASED ON THE LOGIC RE ASONING. THE LD. DR FURTHER SUBMITTED THAT AS THE AMENDMENT CAM E INTO EFFECT FROM 1 ST JUNE, 2015, THEREFORE, THE INFERENCE CAN BE DRAWN TH AT ITS IMPACT HAS TO BE CONSIDERED FROM THE DATE OF THE NOTIF ICATION BUT NOT FOR THE ASSESSMENT YEARS. ITA NO.395 (ASR)/2016 ASST. YEAR : 2014-15 4 6. WE HAVE GONE THROUGH WITH THE FACTS AND CIRCUMSTANCES OF THE CASE AS THE ITAT, AMRITSAR BENCH IN THE CASE OF SIBIA HEAL THCARE (P) LTD. REPORTED AS 171 TTJ 145 (ASR) CLEARLY HELD T HAT INTIMATION ISSUED U/S 200A OF THE ACT FOR DEMANDED FEES U/S 234E WAS NOT VALID IN LAW, IF THE SAME WAS ISSUED ON OR BEFORE 1 ST JUNE, 2015. RECENTLY, WHILE DEALING WITH THE SIMILAR AND IDENTICAL ISSUE, I N ITA NO. 110(ASR)/2017, WE CONSIDERED THE JUDGMENT PASSED IN THE CASE OF SIBIA HEALTHCARE (P) LTD. (SUPRA) AND DELETED THE LATE FEE CONCERNING TO PERIOD PRIOR TO AMENDMENT. EVEN THE HONBLE KARNATAKA HIGH COURT IN THE CASE OF FA THERAJ SINGHVI & ORS. VS. UNION OF INDIA (SUPRA) WHILE DEALI NG WITH THE SAME ISSUE AND ANALYZED THE AMENDMENT DATED 1 ST JUNE, 2015 AND CONSTRUED THAT SUBSTITUTION MADE BY CLAUSE (C) TO (F) OF SUB-SECTION (1) OF SEC. 200A CAN BE READ AS HAVING PROSPECTIVE EFFE CT AND NOT HAVING RETROACTIVE CHARACTER OR EFFECT-RESULTANTLY, THE DEMAND U/S 200A FOR COMPUTATION AND INTIMATION FOR THE PAYMENT OF FEE UNDER SECTION 234E COULD NOT BE MADE IN PURPORTED EXERCISE OF POWER UNDER SECTION 200A BY THE RESPONDENT FOR THE PERIOD OF THE R ESPECTIVE ASST. YEAR PRIOR TO 1 ST JUNE, 2015. HAVING BEEN CONSIDERED THE CASE OF THE SIBIA HEALTHCARE (P) LTD. (SUPRA) AND TRUE SPRIT OF TH E AFORESAID JUDGMENT DELIVERED BY THE KARNATAKA HIGH COURT, WE A RE OF THE CONSIDERED OPINION THAT LATE FEE CANNOT BE LEVIED FOR THE PERIOD PRIOR TO 1 ST JUNE, 2015. HENCE, WE ARE INCLINED TO DELETE THE LATE FEE OF ITA NO.395 (ASR)/2016 ASST. YEAR : 2014-15 5 RS.49,400/- LEVIED BY THE CPC (TDS). HENCE, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLO WED ORDER PRONOUNCED IN THE OPEN COURT ON 25.10. 2017. SD/- SD/- (T. S. KAPOOR) (N.K.CHOUDHRY) ACCOUNTANT MEMBER JUDI CIAL MEMBER DATED:25.10.2017. /PK/ PS. COPY OF THE ORDER FORWARDED TO: (1) THE ASSESSEE: (2) THE (3) THE CIT(A), (4) THE CIT, (5) THE SR DR, I.T.A.T., TRUE COPY BY ORDER