INCOME TAX OFFICER, TDS-3, JAIPUR V. AJMER VIDHYUT VITRAN NIGAM LTD., ASSISTANT ENGINEER (O&M), SIKAR

ITA 595/JPR/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 9318 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 3 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-08-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2016-2017
• Appeal Filed On: 29-04-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROONI PAL DCIT
• Keywords: Audit objection; Tax effect; TDS; Set aside
• Section: 234E; 200A; 246A; 20

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENC HES B JAIPUR JH FOT; IKY JKO] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRA M SINGH YADAV, AM VK;DJ VIHY LA- @ ITA NO. 595/JP/2019 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR :2016-17 ITO, TDS-03, JAIPUR CUKE VS. AJMER VIDHYUT VITRAN NIGAM LTD., ASSISTANT ENGINEER (O&M), SIKAR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: JPRA03055D VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT VK;DJ VIHY LA- @ ITA NO. 519/JP/2019 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR :2017-18 ITO, TDS-03, JAIPUR CUKE VS. AJMER VIDHYUT VITRAN NIGAM LTD., ASSISTANT ENGINEER (O&M), PUSHKAR- AJMER LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: JPRA03075C VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS @ REVENUE BY : MS. ROONI PAL (DCIT) FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : NONE LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 05/08/2020 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT: 14/08/2020 VKNS'K@ ORDER PER: VIKRAM SINGH YADAV, A.M. THESE ARE TWO APPEALS FILED BY THE REVENUE AGAINST THE ORDERS OF LD. CIT(A)-3, JAIPUR DATED 30.01.2019 AND 06.02.2019 FO R A.Y 2016-17 & 2015- 16 RESPECTIVELY. BOTH THE APPEALS WERE TAKEN UP TOG ETHER AND ARE BEING DISPOSED OFF BY THIS CONSOLIDATED ORDER. ITA NO. 595 & 519 /JP/2019 ITO, TDS-03, JAIPUR VS. AJMER VIDHYUT VITRAN NIGAM LTD., SIKAR 2 2. NONE APPEARED ON BEHALF OF THE ASSESSEE NOR WAS ANY ADJOURNMENT APPLICATION FILED. GIVEN THAT THE APPEAL WAS FILED BY THE REVENUE WAY BACK IN APRIL 2019 AND THE MATTER HAS BEEN ADJOURNED FRO M TIME TO TIME, IT WAS DECIDED TO HEAR BOTH THE APPEALS AFTER TAKING INTO CONSIDERATIONS THE CONTENTIONS ADVANCED BY THE LD DR AND OTHER MATERIA L AVAILABLE ON RECORD. ITA NO. 519/JP/2019 3. IN ITA NO. 519/JP/2019 FOR A.Y 2017-18, THE REVE NUE HAS TAKEN THE FOLLOWING GROUNDS OF APPEAL WHICH READ AS UNDER:- 1. WHETHER IN THE FACTS AND CIRCUMSTANCES OF THE C ASE AND IN THE LAW, THE LD. CIT(A)-3 JAIPUR HAS ERRED IN DELETING FEE LEVIED U/S 234E OF THE INCOME TAX ACT 1961 ON PROCESSING OF ETDS STATE MENT (S) FILED LATE IN CONTRAVENTION TO SECTION 200 FOR F.Y 2016-1 7 (QUARTER-3) IN CONTRARY TO CLAUSE (C) TO SECTION 200A(1) INSERTED BY THE FINANCE ACT 2015 W.E.F 01.06.2015? 2. WHETHER UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE AND THE LAW, THE APPLICATION OF PROVISIONS OF SECTION 234E BY THE ASSESSING OFFICER (TDS) AND/OR CPC-TDS AUTHORITY FOR LEVY OF FEE MANDATORILY ON PROCESSING OF ETDS STATEMENT(S) INCLUDING CORRECTIO N STATEMENT(S) FILED LATE BY THE ASSESSEE DEDUCTOR AFTER 01.06.201 5 IS INVALID AND ULTRA VIRES EVEN ON INSERTION OF CLAUSE (C) TO SECTION 20 0A(1) OF THE INCOME TAX ACT 1961 BY THE FINANCE ACT 2015? 3. WHETHER IN THE FACTS OF THE CASE AND IN THE LAW, THE FEE LEVIED U/S 234E IS DISTINGUISHABLE OF A PENALTY AS REFERRE D TO IN CHAPTER XXI AND WHETHER IT IS AN ADJUSTMENT MAKING IN ETDS STAT EMENT APPEALABLE U/S 246A OF THE INCOME TAX ACT 1961? ITA NO. 595 & 519 /JP/2019 ITO, TDS-03, JAIPUR VS. AJMER VIDHYUT VITRAN NIGAM LTD., SIKAR 3 4. DURING THE COURSE OF HEARING, THE LD DR SUBMITTE D THAT THE ASSESSEE DEDUCTOR HAS FILED ON TRACES ONLINE THE TDS STATEME NT IN FORM-24Q FOR 3 RD QUARTER OF F.Y 2016-17 ON 11.03.2017 DURING THE F.Y . 2016-17. THE TDS STATEMENT WAS PROCESSED WITH DEFAULTS ON 17.03.2017 IN COMPLIANCE OF PROVISIONS OF SECTION 200A AND ACCORDINGLY, INTIMAT ION OF PROCESSING WITH DEFAULT AND LEVY OF FEE OF RS.7,800/- U/S 200A(1)(C ) OF THE INCOME TAX ACT, 1961 WAS COMMUNICATED TO THE ASSESSEE AS PER T HE LAW. 5. IT WAS FURTHER SUBMITTED THAT BEING AGGRIEVE D BY THE LEVY OF FEE U/S 200A(1)(C), FOR THE LATE FILING OF TDS STATEMENT FO R THE 3 RD QUARTER OF F.Y. 2016-17, THE ASSESSEE DEDUCTOR FILED APPEAL BEFORE THE LD. CIT (A)-3, JAIPUR WHO VIDE ORDER DATED 30.01.2019 IN APPEAL NO . 70/JPR/17-18 HAS ALLOWED THE APPEAL AND DELETED THE FEE OF RS.7,800/ - LEVIED BY THE DCIT, CPC-TDS, GHAZIABAD HOLDING CONCURRENT JURISDICTION WITH THE ASSESSING OFFICER(TDS)-3, JAIPUR OVER THE CASE, AS PER THE PR OVISIONS OF SECTION 120 READ WITH 124 OF THE INCOME TAX ACT, 1961. 6. IT WAS SUBMITTED BY THE LD DR THAT THE ORDER OF THE LD. CIT (A)-3, JAIPUR IS NOT ACCEPTABLE TO THE DEPARTMENT IN VIEW OF THE FACTS OF THE CASE AND PROVISIONS OF SECTION 200(A)(1)(C) WHICH WAS AM ENDED BY THE FINANCE ACT, 2015 W.E.F. 01.06.2015. IT WAS SUBMITTED THAT FROM THE READING OF THE SAID PROVISIONS OF THE ACT, IT IS CLEAR THAT THE LE VY OF FEE SHALL BE COMPUTED IN ACCORDANCE WITH PROVISIONS OF SECTION 234E AND NO I NTIMATION UNDER SUB- SECTION (1) TO SECTION 200A SHALL BE SENT AFTER THE EXPIRY OF ONE YEAR FROM THE END OF THE FINANCIAL YEAR IN WHICH THE STATEMEN T IS FILED. IT IS ALSO CLEAR THAT THE PROVISION OF FEE IS MANDATORY IN NATURE LE VIED ON PROCESSING OF THE LATE FILING OF ETDS STATEMENT(S) UNDER SECTION 200A(1)(C) OF THE ACT AFTER AMENDMENT W.E.F. 01.06.2015 BY THE FINANCE AC T, 2015. IT IS EVIDENT ITA NO. 595 & 519 /JP/2019 ITO, TDS-03, JAIPUR VS. AJMER VIDHYUT VITRAN NIGAM LTD., SIKAR 4 THAT THERE IS NO DISPUTE ON THE FACT THAT THE ASSES SEE DEDUCTOR HAS FILED TDS STATEMENT FOR QUARTER-3 OF F.Y. 2016-17 DELAYED ON 11.03.2017 AND THE SAME WAS PROCESSED WITH DEFAULT OF DELAY ON 17. 03.2017 WITH LEVY OF FEE U/S 234E WHICH WAS COMMUNICATED TO THE ASSESSEE WITHIN THE PRESCRIBED TIME AS PROVIDED UNDER THE PROVISO TO SE CTION 200A(1)(C) OF THE ACT. IT IS ALSO EVIDENT THAT AFTER SECTION 234E W.E .F. 01.07.2012, THE ASSESSEE DEDUCTOR WHO FAILS TO DELIVER OR CAUSE TO BE DELIVERED A TDS STATEMENT(S) WITHIN THE TIME PRESCRIBED IN THE PROV ISIONS OF SECTION 200(3)/206C(3) OF THE ACT, SHALL BE LIABLE TO PAY, BY WAY OF FEE, A SUM OF RS. 200/- FOR EVERYDAY DURING WHICH THE FAILURE CON TINUES. IT IS ALSO EVIDENT THAT AGGRIEVED BY THE PROVISION OF SECTION 234E, THE CONSTITUTIONAL VALIDITY AND APPLICABILITY OF THE SECTION HAS BEEN CHALLENGED BEFORE THE VARIOUS HON'BLE HIGH COURTS AND FINALLY BEFORE THE HON'BLE SUPREME COURT WHO HAVE HELD THE PROVISIONS OF SECTION 234E AS CON STITUTIONALLY VALID AND APPLICABLE FOR THE LATE FILING OF TDS STATEMENT(S). 7. IT WAS SUBMITTED BY THE LD DR THAT CONTRARY TO THE ABOVE PROVISIONS OF THE ACT, THE LD. CIT (A) HAS DELETED THE FEE U/S 23 4E READ WITH 200A(1)(C) BY TREATING THE FEE AS PENALTY AND AN ADJUSTMENT MA DE IN THE TDS STATEMENT(S). AS PER THE PROVISIONS OF SECTION 246A (1), FEE LEVIED U/S 234E, IS NEITHER A PENALTY AS REFERRED TO IN CHAPTE R- XXI NOR AN ADJUSTMENT MADE U/S 200A(1)/206CB(1), IS PROVIDED A S AN APPEALABLE ORDER AND THUS, THE ORDER OF THE LD. CIT (A) IS NOT ACCEPTABLE AND IT IS AGAINST THE PROVISIONS OF SECTION 200A(1)(C) OF THE ACT. 8. IT WAS SUBMITTED BY THE LD DR THAT CONSIDERING T HE FACTS OF THE CASE AND FEE LEVIED U/S 234E, IT IS SUBMITTED THAT THE L D. CIT(A) HAS ERRED IN DELETING THE FEE LEVIED FOR LATE FILING OF E-TDS ST ATEMENT (QUARTER-3) OF F.Y 2016-17 IN CONTRAVENTION TO THE PROVISIONS OF SECTI ON 200A(1)(C) WHICH IS ITA NO. 595 & 519 /JP/2019 ITO, TDS-03, JAIPUR VS. AJMER VIDHYUT VITRAN NIGAM LTD., SIKAR 5 MANDATORY IN NATURE AND CONSTITUTIONALLY VALID. AS PER THE PROVISIONS OF THE ACT, THE ASSESSEE DEDUCTOR WAS REQUIRED TO PAY FEE FOR LATE FILING OF ETDS STATEMENT COMPUTED IN TERMS OF SECTION 234E ALONGWI TH FILING OF ETDS STATEMENT AND THE FEE LEVIED FOR THE FAILURE OF THE ASSESSEE DEDUCTOR ON THIS ACCOUNT AS COMMUNICATED ON PROCESSING OF THE ETDS S TATEMENT IS CONSTITUTIONALLY VALID. THIS VIEW IS FURTHER SUPPOR TED BY THE JUDGEMENT IN THE CASE OF (I) M/S DUNDLOD SHIKSHAN SANSTHAN & OTHERS V/S UOI & OTHERS (D.B. CIVIL WRIT PETITION NO. 8672/2014) VIDE ORDER DATED 28.07.2015 OF THE HON'BLE RAJASTHAN HIGH COURT, JAIPUR AND IN THE CASE OF RAS HMIKANT KUNDALIA AND ANOTHER V/S UOI (WRIT PETITION NO. 771/2014) VIDE O RDER DATED 06.02.2015 OF HON'BLE BOMBAY HIGH COURT AND FURTHER THE HON'BLE S UPREME COURT OF INDIA HELD THE APPLICATION OF FEE U/S 234E AS CONSTITUTIO NAL VALID AND ACCORDINGLY WRIT PETITION WERE DISMISSED. 9. IT WAS SUBMITTED BY THE LD DR THAT AS PER LAW AN D IN VIEW OF THE ABOVE JUDGMENTS, THE FEE U/S 234E READ WITH SECTION 200A( 1)(C) IS NOT A PENALTY AS REFERRED TO IN THE CHAPTER-XXI OF THE ACT AND WHICH IS DISTINGUISHABLE OF THE PENALTY IS MANDATORY IN NATURE AND THE SAME IS NOT PROVIDED AS APPEALABLE U/S 246A(1). THUS THE FEE U/S 234E LEVIED ON PROCES SING OF THE ETDS STATEMENT FILED FOR THE PERIOD AFTER INSERTION OF C LAUSE(C) OF SECTION 200A(1) IS INTRA VIRES AND IT IS COVERED BY THE EXCEPTION 1 0(A) AS WELL AS 10(E) OF THE BOARD CIRCULAR NO. 3/2018 DATED 11.07.2018 ALTHOUGH THE TAX EFFECT IS BELOW THE PRESCRIBED MONETARY LIMIT. 10. IT WAS ACCORDINGLY SUBMITTED BY THE LD DR THAT IN VIEW OF THE ABOVE FACTS AND CIRCUMSTANCES OF THE CASE AND THE LAW AND FURTHER RELYING UPON ABOVE JUDGMENTS, IT IS SUBMITTED THAT THE ORDER OF THE LD. CIT (A) IS BAD AND ILLEGAL IN THE LAW AND IT IS PRAYED THAT THE ORDER MAY KINDLY BE QUASHED OR ITA NO. 595 & 519 /JP/2019 ITO, TDS-03, JAIPUR VS. AJMER VIDHYUT VITRAN NIGAM LTD., SIKAR 6 ANNULLED AND SET ASIDE FOR THE SAKE OF JUSTICE ON T HE GROUNDS AND QUESTIONS OF LAW. 11. WE HAVE HEARD THE LD DR AND PURUSED THE MATERIA L AVAILABLE ON RECORD. THE LD DR HAS RAISED VARIOUS CONTENTIONS I N SUPPORT OF MERIT OF LEVY OF FEE U/S 234E WHICH HAS BEEN DELETED BY THE LD CI T(A). HOWEVER, BEFORE EXAMINING THE SAID CONTENTIONS, WE FIND THAT THE QU ANTUM OF FEE LEVIED U/S 234E IS RS 7800/- WHICH IS BELOW THE PRESCRIBED THR ESHOLD FOR FILING APPEALS BY THE REVENUE. 12. IN THIS REGARD, WE REFER TO THE CONTENTION ADVA NCED BY THE LD DR THAT THE APPEAL FILED BY THE REVENUE IS COVERED BY THE E XCEPTION 10(A) OF THE BOARD CIRCULAR NO. 3/2018 DATED 11.07.2018 AND PARA 10 OF THE SAID CIRCULAR AS AMENDED VIDE CBDT COMMUNICATION DATED 20 TH AUGUST, 2018 (F NO. 279/MISC. 142/2007-ITJ(PT) WHICH READS AS UNDER:- 2. THE MONETARY LIMITS FOR FILING OF APPEALS BY TH E DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL, HIGH COURTS A ND SLPS/APPEALS BEFORE SUPREME COURT HAVE BEEN REVISED BY BOARDS C IRCULAR NO. 3 OF 2018 DATED 11.07.2018. 3. PARA 10 OF THE SAID CIRCULAR PROVIDES THAT ADVER SE JUDGMENTS RELATING TO THE ISSUES ENUMERATED IN THE SAID PARA SHOULD BE CONTESTED ON MERITS NOTWITHSTANDING THAT THE TAX EFFECT ENTAI LED IS LESS THAN THE MONETARY LIMITS SPECIFIED IN PARA 3 THEREOF OR THER E IS NO TAX EFFECT. PARA 10 OF THE CIRCULAR NO. 3 OF 2018 DATED 11.07.2 018 IS HEREBY AMENDED AS UNDER:- ITA NO. 595 & 519 /JP/2019 ITO, TDS-03, JAIPUR VS. AJMER VIDHYUT VITRAN NIGAM LTD., SIKAR 7 10. ADVERSE JUDGMENTS RELATING TO THE FOLLOWING IS SUES SHOULD BE CONTESTED ON MERITS NOTWITHSTANDING THAT THE TAX EFFECT ENTAILED IS LESS THAN THE MONETARY LIMITS SPECIFIED IN PARA 3 ABOVE OR THERE IS NO TAX EFFECT. (A) WHERE THE CONSTITUTIONAL VALIDITY OF THE PROVISIONS OF AN ACT OR RULE IS UNDER CHALLENGE, OR (B) WHERE BOARDS ORDER, NOTIFICATION, INSTRUCTION OR C IRCULAR HAS BEEN HELD TO BE ILLEGAL OR ULTRA VIRES, OR (C) WHERE REVENUE AUDIT OBJECTION IN CASE HAS BEEN ACCE PTED BY DEPARTMENT, OR (D) WHERE ADDITION RELATES TO UNDISCLOSED FOREIGN INCOME/UNDISCLOSED FOREIGN ASSETS (INCLUDING FINANC IAL ASSETS)/UNDISCLOSED FOREIGN BANK ACCOUNT. (E) WHERE ADDITION IS BASED ON INFORMATION RECEIVED FR OM EXTERNAL SOURCES IN THE NATURE OF LAW ENFORCEMENT A GENCIES SUCH AS CBI/ED/DRI/SFIO/DIRECTORATE GENERAL OF GST INTELLIG ENCE (DGGI). (F) CASES WHERE PROSECUTION HAS BEEN FILED BY THE DEPA RTMENT AND IS PENDING IN THE COURT. 13. PARA 10(A) OF THE AFORESAID CIRCULAR AS AMENDED PROVIDES THAT WHERE THE CONSTITUTIONAL VALIDITY OF THE PROVISIONS OF AN ACT OR RULE IS UNDER CHALLENGE, THE ADVERSE JUDGMENTS RELATING TO THE SA ID MATTER SHOULD BE CONTESTED ON MERITS NOTWITHSTANDING THAT THE TAX EF FECT ENTAILED IS LESS THAN THE MONETARY LIMITS SPECIFIED IN PARA 3 ABOVE OR TH ERE IS NO TAX EFFECT. 14. IN THE PRESENT CASE, WE FIND THAT THE LD CIT(A) HAS NOWHERE STATED IN HIS ORDER THAT PROVISIONS OF SECTION 234E ARE NOT C ONSTITUTIONAL VALID AND HENCE, HE IS DELETING THE FEE U/S 234E OF THE ACT. HE HAS MERELY REFERRED TO THE SUBMISSION OF THE ASSESSEE WHERE THE LATTER HAS STATED THAT AN SLP HAS BEEN ADMITTED AGAINST THE DECISION OF THE HONBLE B OMBAY HIGH COURT IN CASE ITA NO. 595 & 519 /JP/2019 ITO, TDS-03, JAIPUR VS. AJMER VIDHYUT VITRAN NIGAM LTD., SIKAR 8 OF RASHMIKANT KUNDALIA AND OTHERS VS UNION OF INDIA AND OTHERS WHERE IT WAS HELD THAT THE PROVISIONS OF SECTION 234E ARE CONSTI TUTIONALLY VALID AND IN VIEW OF THE FACT THAT THE SLP HAS BEEN ADMITTED, NO RECO VERY OF FEES CAN BE EXECUTED. INFACT, IT IS NOT EVEN THE SUBMISSION OF THE ASSESSEE BEFORE THE LD CIT(A) THAT THE FEE IS NOT CONSTITUTIONALLY VALID. THEREFORE, IT CANNOT BE INFERRED THAT HE HAS ACCEDED TO THE CONTENTION OF T HE ASSESSEE THAT SUCH PROVISIONS ARE NOT CONSTITUTIONALLY VALID. WHETHER A PARTICULAR PROVISION IS WITHIN THE FOUR CORNERS OF THE CONSTITUTION IS A MA TTER WHICH FALLS IN THE EXCLUSIVE DOMAIN AND JURISDICTION OF THE COURTS AND THE LD CIT(A) DOESNT HAVE ANY AUTHORITY AND JURISDICTION TO HOLD ANY PRO VISIONS AS CONSTITUTIONALLY NOT VALID. IN THE PRESENT CASE, WE ARE OF THE CONS IDERED VIEW THAT HE HAS NOT BREACHED HIS AUTHORITY AND JURISDICTION IN THIS REG ARD WHILE PASSING THE IMPUGNED ORDER. THE REVENUE MAY HAVE OTHER GRIEVANC ES AGAINST HIS ORDER PASSED BY THE LD CIT(A) DELETING THE FEE U/S 234E O N MERITS OF THE CASE, HOWEVER, AS FAR AS PARA 10(A) OF THE CBDT CIRCULAR NO. 3 OF 2018 AS AMENDED IS CONCERNED, THE EXCEPTION CARVED OUT THER EIN IS NOT APPLICABLE IN THE PRESENT CASE. 15. NOW, COMING TO THE SECOND EXCEPTION 10(E) WHICH HAS BEEN REFERRED BY THE LD DR. THE LD DR HAS CONTENDED THAT FEE U/S 234E HAS BEEN LEVIED BASIS THE INFORMATION AND PROCESSING OF TDS STATEME NT BY CENTRAL PROCESSING CENTRE, WHICH IS AN EXTERNAL AGENCY AND THEREFORE, THE SAID EXCEPTION IS APPLICABLE IN THE INSTANT CASE. 16. WE FIND THAT EXCEPTION 10(E) TO THE AFORESAID CBDT CIRCULAR RELATES TO CASES WHERE ADDITION IS BASED ON INFORMATION RECEIV ED FROM EXTERNAL SOURCES IN THE NATURE OF LAW ENFORCEMENT AGENCIES SUCH AS C BI/ ED/ DRI/ SFIO/ DIRECTORATE GENERAL OF GST INTELLIGENCE (DGGI). IN THE INSTANT CASE, THE ASSESSEE HAS FILED HIS TDS STATEMENT ON TRACES WHIC H IS AN IT PLATFORM MANAGED AND RUN BY THE TAX DEPARTMENT AND THEREAFTE R, THE SAID STATEMENT ITA NO. 595 & 519 /JP/2019 ITO, TDS-03, JAIPUR VS. AJMER VIDHYUT VITRAN NIGAM LTD., SIKAR 9 HAS BEEN PROCESSED CENTRALLY BY CENTRAL PROCESSING CENTRE WHICH IS AGAIN MANNED BY THE PERSONNEL OF THE TAX DEPARTMENT AND F INALLY, INTIMATION U/S 200A(1)(C) OF THE SAID PROCESSING HAS BEEN ISSUED D ULY SIGNED BY DCIT, CPC- TDS GHAZIABAD. AS PER THE REVENUES OWN SUBMISSION , DCIT, CPC-TDS GHAZIABAD HOLDS CONCURRENT JURISDICTION WITH THE AS SESSING OFFICER(TDS)-3, JAIPUR OVER THE CASE, AS PER THE PROVISIONS OF SECT ION 120 READ WITH 124 OF THE INCOME TAX ACT, 1961. THEREFORE, EVEN THOUGH CP C HAS ITS SEPARATE AND IDENTIFIABLE FUNCTIONS RELATING TO TDS RETURNS, THE OFFICERS HOLD CONCURRENT JURISDICTION OVER SUCH TDS MATTERS WITH THAT OF THE ASSESSING OFFICER, THERE CANNOT BE ANY DISPUTE THAT BOTH ADMI NISTRATIVELY AND FUNCTIONALLY, THE CPC OF THE DEPARTMENT IS PART OF INCOME TAX DEPARTMENT AND IS THEREFORE CLEARLY NOT AN EXTERNAL LAW ENFORC EMENT AGENCY QUA INCOME TAX DEPARTMENT AND THAT TOO, AS SPECIFIED IN THE AF ORESAID EXCEPTION. THEREFORE, IN THE INSTANT CASE, WHERE THE TDS STATE MENT HAS BEEN PROCESSED BY THE CPC AND WHILE PROCESSING THE SAME, FEE U/S 2 34E HAS BEEN LEVIED HAVING TAX EFFECT LESS THAN THE PRESCRIBED LIMIT, I T WILL CONTINUE TO BE GOVERNED BY LOW TAX EFFECT CIRCULAR ISSUED BY THE C BDT WHICH IS BINDING ON THE REVENUE. 17. IN LIGHT OF THE SAME, THE PRESENT APPEAL FILED BY THE DEPARTMENT IS DISMISSED ON ACCOUNT OF LOW TAX EFFECT GIVEN THAT T HE MATTER IS NOT COVERED BY ANY OF THE EXCEPTIONS SO SPECIFIED AND THE CONTE NTIONS ADVANCED BY THE LD DR ON MERITS OF THE CASE ARE LEFT OPEN AND NOT ADJU DICATED UPON. 18. IN ITA NO. 595/JP/2019, THE TAX EFFECT INVOLV ED IS RS 10,600/- AND SINCE FACTS AND CIRCUMSTANCES OF THE CASE ARE EXACTLY IDE NTICAL TO FACTS AND CIRCUMSTANCES OF THE CASE IN ITA NO. 519/JP/2019, O UR FINDINGS AND DIRECTIONS CONTAINED THEREIN SHALL APPLY MUTATIS MUTANDIS TO THIS APPEAL. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED ON ACCOUNT OF LOW TAX ITA NO. 595 & 519 /JP/2019 ITO, TDS-03, JAIPUR VS. AJMER VIDHYUT VITRAN NIGAM LTD., SIKAR 10 EFFECT GIVEN THAT THE MATTER IS NOT COVERED BY ANY OF THE EXCEPTIONS SO SPECIFIED. IN THE RESULT, BOTH THE APPEALS FILED BY THE REVENU E ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 14/08/2020. SD/- SD/- FOT; IKY JKO FOE FLAG ;KNO (VIJAY PAL RAO) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 14/08/2020 * GANESH KR. VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- ITO, TDS-03, JAIPUR 2. IZR;FKHZ@ THE RESPONDENT- AJMER VIDHYUT VITRAN NIGAM LTD., SI KAR AJMER VI DHYUT VITRAN NIGAM LTD., AJMER 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR. 6. XKMZ QKBZY@ GUARD FILE {ITA NO. 595 & 519/JP/2019} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR