Sh. Gurpreet Singh, Ludhiana V. ITO Ward 6(1), Ludhiana

ITA 526/CHANDI/2022

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 6850 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-09-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2016-2017
• Appeal Filed On: 26-06-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRIYANKA DHAR
• Keywords: TDS
• Section: 27; 64; 20

Judgement Text

आयकर अपील य अ धकरण,च डीगढ़ यायपीठ, च डीगढ़ I N T H E I N C O M E T A X A P P E L L A T E T R I B U N A L D I V I S I O N B E N C H , ‘ A ’ , C H A N D I G A R H B E F O R E SH R I A . D . J A I N , V I C E P R E S I D E N T & SH R I V I K R A M S I N G H Y A D A V , A C C O U N T A N T M E M B E R आयकर अपील सं./ ITA No. 5 2 6 / C H D / 2 0 2 2 नधा रण वष / Assessment Year : 2 0 1 6 - 1 7 Sh. Gurpreet Singh, Prop M/s Designer’s Firm , 2511/Urban Estate Phase-12, Dugri, Ludhiana Vs. बनाम The ACIT, TDS CPC, Ghaziabd U.P. थायी लेखा सं./PAN NO: BASPS8203E अपीलाथ /Appellant यथ /Respondent Hearing through video Conferencing नधा रती क ओर से/Assessee by : Sh. Parikshit Aggarwal, CA राज व क ओर से/ Revenue by : Smt. Priyanka Dhar, Sr.DR स ु नवाई क तार%ख/Date of Hearing : 12.09.2022 उदघोषणा क तार%ख/Date of Pronouncement : 15.09.2022 आदेश/Order Per A.D. Jain, Vice President: Th i s i s a n a p pe al f i l e d b y t h e a ss e s s e e ag ai n s t t he o r d e r da t e d 28 . 04. 2 02 2 o f t he Ld . C o m m i s si o ne r o f In c o m e T a x ( Ap pe a ls ) , [h er e i n re f er r e d t o a s ‘C IT (A ) ’], fo r a s se ss m e n t ye ar 2 01 6-1 7, c on for mi ng t he c ha rg in g o f l at e fi l in g fe e o f R s. 3, 6 4, 60 0 / - u / s 2 3 4E o f th e I n c o m e T ax A c t , 19 6 1 ( he r e i n a ft e r ca l l e d ' t h e A c t ') i n r es pe c t o f l at e f il i ng o f T D S st a t e m e n t i n F or m N o . 2 7Q . 2. Th e fo ll o w i n g g ro un d s h a v e b ee n r a i se d b y t he a sse ss e e i n t h i s a pp e a l 526-Chd-2022 – Sh. Gurpreet Singh, Ludhiana 2 1. T ha t o n t h e f ac t s, c i rc u m st a n c e s a n d l eg al po si t i o n o f t h e c a s e , t he Wo rt hy CI T ( A ), NF A C i n A p pe a l N o. N FA C/ 20 15- 1 6 /1 00 2 07 5 3 d at e d 28 . 04. 2 02 2 h a s e r r ed i n p a s si ng t h at or de r i n c on t r a v e n t i on o f t he p r o v is i o ns o f S . 25 0 o f t he In c om e T a x A c t , 1 96 1. 2. T ha t on f a c t s, c i rc um st an c e s a nd l e ga l p os i t i o n o f t he c a se , t h e Wo rt hy CIT ( A) , N F A C h a s e rre d i n c on f i rm i n g t he c h a rgi n g o f l a t e f i l in g f e e of R s. 3, 6 4, 60 0/ - c h ar g e d u/ s 2 34 E i n re sp e c t o f l a t e f i l i n g o f T D S s t a t e m en t e v en w he n th e a pp e l la nt ha d f i l ed T D S s t a t e m e nt i n t i m e bu t i n a dv e rt en t l y i n F o rm 2 6Q B a n d on r e al i z i n g t h e m i st a k e fi l e d t he st a t e m e n t i n F orm 2 7Q bu t no w i t w a s ob v i o us l y f i l e d la t e . 3. T ha t th e a p p el l a nt c r av e s l e a v e f or a ny ad di t i o n, de l e t i o n o r a m e n d m e nt i n t h e g ro un d s o f a p pe al on or b e f or e t he d i s po sal o f th e s am e . 3. Th e f ac t s a r e t h a t t he a ss e s se e i s e ng a g e d in the b u s i ne ss o f a rc hi t ec t u r e. T he a ss e s se e p u r c h a se d a pr o pe r t y for R s. 29 , 04, 0 0 0/ - o n 27 . 11. 2 01 5 fr o m o ne S h. S al i n d e r S in g h, a N RI ( P A N : E Y D P S 823 7Q ) a nd d e d uc t e d t h e T D S o f R s. 5, 98 , 2 2 4 /- a t t h e pr e s cr i b e d ra t e , i. e . , @ 20 . 60 p e rc e n t a n d d e p os i t ed t h e sa m e o n 07. 1 2. 20 15. T h e a sse s s ee fi l e d t he T D S st a t e me nt i n F o r m 2 6 Q B o n 0 7. 1 2. 20 15, i n st e a d o f i n F o r m 27 Q . O n c o m i n g t o k n ow l e dg e t h a t t h e d e d uc t e e w as no t g e t t i n g f u l l c re di t o f t h e T D S d ep os i t e d , t he a ss e ss e e h a d m a d e r e q u es t fo r r e fu n d o f T D S on 2 1. 0 1.20 2 0, w hi c h w a s re f un d e d o n 22. 1 2 . 20 20, a n d t he a ss e s se e a ga i n de po si t e d th e s a me on 29 . 1 2. 20 20 a nd fi l e d th e T D S Re t ur n o n 11 . 01 . 2 02 1 i n F o r m 2 7Q , as a p pl i c a b l e . Th e I n co m e T a x 526-Chd-2022 – Sh. Gurpreet Singh, Ludhiana 3 D e pa r t m en t h a d p a i d th e i nt e r e s t o f Rs. 3 4 , 1 5 1 / - . T he CP C , T D S i mp o se d t h e i nt e re st o n l a t e p a y m e nt o f R s. 4, 9 5, 1 1 2 / - an d l a t e f il i n g fe e s u/ s 23 4E at R s . 3 , 64, 6 00 / -. 4. By vi r t u e o f t he i m pu gne d o r de r, t he L d. CI T (A ) de le t e d t h e i mp o si t io n o f i n te r e st o n l a t e p a y me n t , b u t c o n fi r med t h e c ha rg e a b i l it y o f l a t e fi l i n g fe e o f R s. 3, 64 , 60 0 / - . 5. A g gr i e v e d , t h e a ss e sse e i s i n a pp e a l b e f or e u s. 6. Th e L d . Co u n se l fo r t h e a s se ss e e h a s co nt e n de d th a t t h e a sse ss e e ha d p ur c h a s e d t he pro pe rt y fr o m S . S a i l e n d e r S i n g h,( a N RI h a v i n g P A N : E Y D P S 823 7Q ) f or R s. 2 9, 04 , 00 0 / - o n 2 7. 11 . 2 01 5 a n d de p o si te d t he T D S a t t he a p p l i c a bl e r a t e , i . e. , 20 . 6 0 % o n 0 7 . 12. 2 0 15 a n d f il e d th e T D S re t ur n i n a d ve r t e nt l y, m is t a ke nl y, i n F or m N o . 2 6Q B, w e l l i n t i me o n 07 . 12. 2 01 5 , i nst e a d o f i n F or m N o . 2 7 Q , u/ s 1 9 5 of T h e In c o m e T a x A c t, 19 6 1; t ha t w h en t he a ss e s s e e c a m e t o kn ow the fa c t s a n d c on f i r m ed t h e pr o c ed ur e , h e h a d a p pl i e d fo r t h e r e fu n d o f t h e T D S de p o s i t e d ea rl i e r so t ha t h e c o u l d f i l e t he T D S st at e m e n t in t h e pr e sc r i b e d F o r m N o. 27Q , w h i c h T D S w a s r e fu nd ed b y t he I nc o m e T a x D e pa r t m en t on 2 2. 12 . 20 2 0; t h a t th e a s se s se e a ga in d e p o sit e d t he sa m e w i t ho u t t a k i n g m uc h t i me , o n 29. 1 2. 2 0 2 0; a n d t h at t he TD S st a t e m en t i n F o r m N o. 27Q w as a l s o fi l e d o n 11. 0 1. 2 0 2 0 bu t t he L d. C IT (A ) , N F A C c on fi r m e d t h e la t e f i l i n g fe e u / s 23 4 E o f R s. 3, 6 4, 6 0 0/ -. 526-Chd-2022 – Sh. Gurpreet Singh, Ludhiana 4 7. Re l i a nc e h a s b e e n pl a c e d o n t he d ec i s i on o f th e A h me da b a d Be n c h o f t h e T r i b u n a l i n ‘ M /s G . B Bu i ld er s, A hm e d a ba d V s. A CI T ’ (I T A N o . 62 6 / A hd/ 2 0 18 , fo r ass e s s m e n t ye ar 20 1 5- 16 ) , ord er da t e d 2 5. 4 . 2 02 2. 8. P er c o n t ra , t he L d . D R h a s p l a c ed r e l i a nc e on t he i mp ug n e d o r d e r . F ur t h e r, sh e s ou g ht t o re l y o n t h e d e c i s i o n o f t h e Ja i p u r B e n c h o f t h e T ri bu na l i n th e c a s e o f ‘ Bl oc k D e v e l o p me n t O ff ic e r, C ha k s u, J a i p u r V s. A CI T ‘ ( IT A N o s. 89 1, 8 9 2, 89 3 , 89 4 , 8 95 & 89 6 / JP /201 9 ), w h e r e i n , i t ha s b ee n he l d t h a t l a t e fe e u / s 23 4 A E o f t h e A ct i s m a nda t o r y a nd c on s e q u e n t i al a n d so, i t c a n no t b e d e le t e d o n t he gr ou n d o f r e a so na b l e c au se . 9. H e a rd . T he f ac t s a re n ot d i s pu t e d . Th e q u es t i on i s a s t o w h et he r t he Ld . C IT (A ) h as c or re c t l y c o n fi r m e d t h e l e v y o f l at e fi l i n g fe e o f R s. 3, 6 4, 60 0/ - u/ s 23 4 A E o f t h e A c t . I n d o in g so, t h e L d. C I T( A ) ha s re l i e d on t h e d e c is io n o f t he H o n 'b l e K er a la H ig h C o u rt in t h e ca s e o f ‘S h r e e N a ra y a n a G u ru S m ar a ka S a n g a m U p p e r P r i m ar y S c h o o l Vs. U n io n o f In d i a / D CI T , CP C G ha z i a b a d ’ , i n WP ( C ) N o. 3 02 29 o f 2 0 1 3, da te d 14 . 12. 2 01 6 . In t h i s c a se , i t h a s b e e n he l d t h a t t he re i s n o e l e m e nt o f qu i d pr o qu o fo r c ol l ec t i ng l a te fe e , an d t ha t b y in c o r p o ra ti n g se ct i o n 23 4E , l a t e fe e h a s be c o m e ma n d a to r y. T he re i s n o o ppo si t i o n t o t h is vi e w . H o w e v er , t he r e al s o ca n n ot b e a n y d e n i al th a t w h er e t he l a p s e c a m e a b o ut d u e t o a me r e t e c h n i c a l e r r or , l i ke t he o ne in th e p r e s e n t c as e, i . e. , i na dv e r t e nt w ro n g fi l i n g o f TD S S t a tem e n t, i . e . , i n F o r m N o . 526-Chd-2022 – Sh. Gurpreet Singh, Ludhiana 5 26 Q B, r a t h er t ha n i n t h e a p p l ic a b l e F o r m N o. 2 7Q , the re is n o c a se f or l e v y o f l a t e fi l i n g fe e u/ s 23 4E o f t he A c t. 10 . Th e Ld . CI T (A ) h a s a l so so ug ht t o re l y on t h e de c i s i o n o f t h e H on ' bl e Bo m b a y H i gh C ou rt i n th e c a se o f ‘ R a s h m ik ant K u n da l i a a n d O t he r s V s. U ni o n o f I n di a ’, 37 3 I T R 2 6 8 (B o m. ) , w he re i n, i t w a s h e l d t ha t s e c t i o n 23 4 E o f th e A c t i s no t pu n i t i v e i n na tu r e bu t a fe e w hi c h is fi x ed c h a r ge fo r t h e e xt r a se rv i ce w h i c h t h e D e p a r tme n t h a s t o p ro v i de du e t o l a t e fi li ng o f T D S st a t e m e n t s. A g ai n t h e p r op os i t io n l a i d dow n c an no t b e c o nt r o ve rt e d. H ow e ve r, t h i s d e c i si on t oo d oe s n ot de a l w it h t he fa c t s a t ha n d. I t i s o n l y l t ha t i t w a s du e t o i na dv er te nt e rr or t h a t t h e T D S st a t e me nt w a s fil e d i n th e w r o n g F or m. H a d it no t be e n s o , th er e w ou l d no t h a v e be en a ny q u e st io n o f l e v y o f i n t e re st u / s 23 4E o f t he A c t, w h ic h w a s de l e te d b y t he Ld . CI T (A ) hi mse l f. 11 . Th e L d. C IT ( A ) h a s n ot a l s o t a k e n i n t o c o n si dera t i o n t h e fa ct t ha t ha d t he i n t e nt i o n o f t h e a ss es se e b e e n o t he rw i s e , i t w ou l d n ot h a v e de p o s i t e d th e e n t i r e T D S a m ou n t . M e re t e c h ni c al bre a c h ca nn ot l e a d t o t he a ss es se e b e i ng p en al i z ed . 12 . Th e L d. C IT (A ) ha s fu rt he r no t c on si d e r e d t h e fa c t t ha t ac t ua l ly , no lo ss h a s b e e n c a u se d t o t he R e ve nu e . 13 . Th e ca se o f ‘ M / s G . B Bu i l d e r s V s. A C IT ’ (s u p ra) i s t o t h e s a m e e ff ec t . T he r e i n a l s o, i t w a s h e l d t ha t a me r e te c h ni c a l i n a dv e r t e nt e rr o r di d n ot i nv i t e l e v y o f l a t e fi l i ng fe e u / s 2 34 E o f t h e A c t . 526-Chd-2022 – Sh. Gurpreet Singh, Ludhiana 6 14 . Th e c a se o f ‘ Bl o c k D e ve l o p m e nt O ff i c e r , C h a k s u, J a i p u r V s. A CI T ’ ( su p r a ), on t he ot he r ha nd , i s n ot o f m uc h aid t o t he D e pa r t m e nt . T he re , th e a ss e s se e ha d no t f i l e d a ny T D S S ta t e me nt a t a ll a n d i t w a s on t he fa c ts o f t h a t p ar ti c ul a r c a s e, t ha t t h e T r i b u n al h as c o n fi r m e d t h e l e vy o f l a t e fi l i n g fe e u/ s 23 4 E o f t he A c t. 15 . In t h e a b o ve fa c ts a n d c i r c u m s t a n ce s, fi n d i n g mer it i n t h e gr i ev an ce s ou g h t t o be ra is e d b y t he a sse ss e e b y w ay o f t he G r o u n ds o f a pp e a l t a ke n, t he s a me i s a c c e pt e d. T h e or de r un de r a p p e a l i s, t he re for e , re v er se d . 16 . In t h e re s u l t , t he ap pe a l i s a l l o w e d . O r de r p ro n o u n c e d on 1 5. 09 . 2 02 2. S d/ - S d/ - (VIKRAM SINGH YADAV) ( A.D. JAIN ) Accountant Member Vice President Dated : 15.09.2022 “आर.के .” आदेश क त,ल-प अ.े-षत / Copy of the order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent 3. आयकर आय ु 2त/ CIT 4. आयकर आय ु 2त (अपील)/ The CIT(A) 5. -वभागीय त न7ध, आयकर अपील%य आ7धकरण, च9डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड फाईल/ Guard File आदेशान ु सार/ By order, सहायक पंजीकार/ Assistant Registrar