Garrison Tools Pvt. Ltd., Ghaziabad V. ITO (TDS), Ghaziabad

ITA 591/DEL/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 4206 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 11 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-01-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: misc
• Appeal Filed On: 04-02-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH D NEW DLEHI BEFORE SHRI G.D. AGRAWAL, PRESIDENT AND SHRI K. NARSIMHA CHARY, JUDICIAL MEMBER I.T.A. NOS.590 TO 592/DEL/2016 ASSESSMENT YEAR: 2014-15 M/S GARRISON TOOLS PVT. LTD., VS INCOME-TAX OFFICER (TDS), C/O GARG R. KUMAR & ASSOCIATES, CAS VAISHALI. 7, ADVOCATE CHAMBERS, RAJ NAGAR DISTT CENTRE, GHAZIABAD. (PAN: AAACG5873A ) (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI RAKESH GARG, CA RESPONDENT BY: SMT. RITU SHARMA ORDER PER BENCH CHALLENGING THE ORDERS OF THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS), FARIDABAD (FOR SHORT HEREINAFTER CALLED AS THE LEARNED CIT(A)) IN APPEAL NOS.1, 2 & 3 OF 2014-15 OF 21.10.2015 CONFIR MING THE LEVY OF LATE FILING FEE U/S 234E OF THE INCOME-TAX ACT, 1961, ASSESSEE PREF ERRED THESE APPEALS. 2. BRIEFLY STATED FACTS ARE THAT THE ASSESSEE IS A MANUFACTURING COMPANY AND THEY COULD NOT DEPOSIT THE TDS LIABILITY WITHIN STIPU LATED TIME DUE TO THEIR FINANCIAL STRINGENCIES AS ITS LOAN INCLUDING CC LIM IT BECOMES NPA DUE TO SHORTAGE OF FUNDS. HOWEVER, WHEN TDS RETURNS FOR THIRD AND FOURTH QUARTERS WERE FILED, 2 LATE FEE WAS LEVIED. APPEAL CHALLENGING THE SAME W AS DISMISSED BY THE LEARNED CIT(A) STATING THAT THE LATE SUBMISSION OF TDS STAT EMENT INCREASES THE BURDEN WITH EXTRA WORK ON THE DEPARTMENT AND THAT IS THE R EASON WHY SECTION 234E OF THE ACT REGULARIZES THE TDS STATEMENT BEYOND THE STI PULATED TIME WITH LEVY OF PENALTY. ACCORDING TO HIM, IT IS A PRIVILEGE AND A SPECIAL SERVICE TO THE DEDUCTOR ALLOWING THEM TO FILE THE TDS RETURN BEYOND THE PRES CRIBED TIME. WITH THIS VIEW OF THE MATTER, THE LEARNED CIT(A) DISMISSED THE APP EAL. HENCE, THE ASSESSEE IS BEFORE US. 3. THE ONLY ISSUE THAT ARISES FOR OUR CONSIDERATION IN THIS MATTER IS IN RESPECT OF THE LEVY OF FREE U/S 234E OF THE INCOME-TAX ACT. IT IS THE ARGUMENT OF THE LEARNED AR THAT PRIOR TO 1.6.2015, THERE WAS NO AME NDMENT TO SUB SECTION (1) AND IT WAS ONLY SUBSTITUTED W.E.F. 1.6.2015 BY SUBSTITUTI NG CLAUSE (C) THERETO. IN THE ABSENCE OF SUCH A PROVISION, A STATEMENT FILED BY TH E ASSESSEE HAS TO BE PROCESSED IN THE MANNER IT WAS LAID DOWN U/S 200A OF THE ACT AS IT STOOD UN-AMENDED. HE, THEREFORE, SUBMITS THAT INASMUCH AS THE PERIOD INVO LVED IN THESE SET OF APPEALS IS PRIOR TO 1.6.2015, SUCH A POWER NOT AVAILABLE TO TH E DEPARTMENT AS TO INVOKE THE PROVISIONS U/S 234E OF THE ACT. LEARNED DR PLACED RELIANCE ON THE ORDERS OF THE AUTHORITIES BELOW. 4. WE HAVE PERUSED THE RECORD. CLAUSE (C) OF SUB S ECTION (1) OF SECTION 200A WHICH EMPOWERS THE DEPARTMENT TO LEVY THE FEE IN ACC ORDANCE WITH THE PROVISIONS OF SECTION 234E IS SUBSTITUTED BY FINANCE ACT, 2015 W.E.F. 1.6.2015. FURTHER, A SIMILAR QUESTION HAS FALLEN FOR CONSIDER ATION BEFORE THE COORDINATE BENCHES OF THIS TRIBUNAL CHENNAI BENCH IN THE CASE OF SMT. G. INDHRANI VS DCIT (ITA NOS. 1010 TO 1021/MDS/2015, ITAT, AMRITSAR BEN CH IN THE CASE OF SIBIA 3 HEALTHCARE PRIVATE LTD. VS DCIT (TDS) AND ITAT, AHM ADABAD IN THE CASE OF KARGIL HOLDINGS PRIVATE LTD. VS DCIT AND IT IS CONSISTENTL Y HELD THAT PRIOR TO 1.6.2015, NO PROVISION IS THERE ON THE STATUTE BOOK ENABLING TH E DEPARTMENT TO LEVY OF FEE U/S 234E, AS SUCH IS NOT SUSTAINED. SINCE THE RATIO OF THESE DECISIONS IS SQUARELY APPLICABLE TO THE FACTS OF THESE CASES ALSO, WHILE RESPECTFULLY FOLLOWING THE SAME, WE FIND THE LATE FEE LEVIED U/S 234E OF THE ACT CAN NOT BE SUSTAINED. HENCE, THE APPEALS OF THE ASSESSEE ARE ALLOWED. 5. IN THE RESULT, APPEALS ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 5 TH JANUARY, 2018. SD/- SD/- (G.D. AGRAWAL) (K. NARSIMHA CHARY) PRESIDENT JUDICIAL MEMBER DATED: 5 TH JANUARY, 2018 VJ COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT BY ORDER ASSTT. REGISTRAR