Appeal Details
Counselvise Citation
[2019] 116 COUNSELVISE.COM (IT) 2944 (ITAT-INDORE)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
1 year(s) 25 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
06-08-2019
Appeal Filed By
Assessee
Order Result
Dismissed
Bench Allotted
DB
Next Hearing Date
29-07-2019
Assessment Year
2013-2014
Appeal Filed On
11-07-2018
Judgement Text
, , IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ITA NOS.665 TO 673/IND/2018 PANCHEEL ORGANICS LIMITED, B-6-B7, SECTOR-C, SANWER ROAD, INDORE TAN:BPLP00360D A.YS.: 2013-14(Q-2, Q-3, Q-4 & Q-4), 2014-15 (Q-2, Q-4, Q-1 & Q-4) & 2015-16(Q-4) ITA NOS.640 TO 647/IND/2018 SARTHAK REAL BUILT PVT. LTD. 12/10 NEW PALASIA, INDORE TAN:BPLM07095E A.YS.: 2016-17(Q-1,Q-2,Q-3,Q-4, Q-1,Q-3, Q-4), 2017 -18 (Q-4) VS. DCIT( CENTRALIZED PROCESSING CELL-TDS), GHAZIABAD APPELLANT S BY SHRI MAHESH AGRAWAL & SHRI AMIT CHOUDHARY, CAS R EVENUE BY SHRI R.P. MOURYA CIT - DR DATE OF HEARING: 29.07.2019 DATE OF PRONOUNCEMENT: 06.08.2019 ITANOS. 640 TO 647/IND/2018 & ITANO.665 TO 673/IND/2018 SARTHAK REAL BUILT P. LTD. & SARTHAK ORGANIC LTD. 2 / O R D E R PER BENCH: THE ABOVE CAPTIONED BUNCH OF 17 APPEALS AT THE INSTANCE OF RESPECTIVE ASSESSEES ARE DIRECTED AGAINST TH E RESPECTIVE ORDERS OF LD. COMMISSIONER OF INCOME TAX(APPEALS)-II, INDORE, (IN SHORT CIT(A)) DATED 18.05.2018. & 11.06.2018. 2. AS THE ISSUE RAISED IN ALL THESE APPEALS ARE SIMILAR, THESE WERE HEARD TOGETHER AND ARE BEING DISPOSED OF B Y THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE AND BREVITY. 3. FROM PERUSAL OF THE GROUNDS FILED IN THE RESPECTI VE APPEALS, ONLY ONE ISSUE NEEDS TO BE ADJUDICATED AS TO WHETHER THE REVENUE AUTHORITIES WERE JUSTIFIED IN LE VYING THE LATE FEES U/S 234E OF THE ACT IN THE STATEMENT PROCESSED U/S 200A OF THE ACT. 4. FOLLOWING CHART SHOWS THE DETAILS OF TDS QUARTER, FINANCIAL YEAR, DATE OF FILING THE TDS RETURN, DATE OF ITANOS. 640 TO 647/IND/2018 & ITANO.665 TO 673/IND/2018 SARTHAK REAL BUILT P. LTD. & SARTHAK ORGANIC LTD. 3 ORDER OF CENTRAL PROCESSING CELL AND THE AMOUNT OF FEE S LEVIED U/S 234E OF THE ACT. IN THE CASE OF SARTHAK REAL BUILT PRIVATE LIMITED IN THE CASE OF PANCHSHEEL ORGANICS LIMITED TABLE - A S. N O. A.Y . QUA RTER FORM DUE DATE OF FILING ACTUAL DATE OF FILING REGULAR STATEMEN T ORDER U/S 200A PASS ON DATE DELAY IN DAYS IN FILING TDS STATEM ENT LATE FEE U/S 234E 1 2013-14 Q2 24Q 15-10-12 04-10-13 10-11-13 354 70,800/- 2 2013-14 Q3 24Q 15-01-13 04-10-13 10-11-13 262 52,400/- 3 2013-14 Q4 24Q 15-05-13 04-10-13 10-11-13 142 28,400/- 4 2013-14 Q4 26Q 15-05-13 12-09-13 11-11-13 120 24,000/- 5 2014-15 Q2 24Q 15-10-13 24-03-15 27-03-15 525 1,05,000/- S. NO A.Y. QUARTER FORM DUE DATE OF FILING ACTUAL DATE OF FILING REGULAR STATEMENT ORDER U/S 200A PASS ON DATE DELAY IN DAYS IN FILING TDS STATEMENT LATE FEE U/S 234E 1 2016-17 Q1 26Q 15-07-2015 02-07-2016 15-07-2016 353 70600 2 2016-17 Q2 26Q 15-10-2015 02-07-2016 15-07-2016 261 52200 3 2016-17 Q3 26Q 15-01-2016 02-07-2016 15-07-2016 169 33800 4 2016-17 Q4 26Q 15-05-2016 02-07-2016 06-07-2016 47 9400 5 2016-17 Q1 24Q 15-07-2015 10-08-2016 17-08-2016 392 12936 6 2016-17 Q3 24Q 15-01-2016 10-08-2016 17-08-2016 208 16300 7 2016-17 Q4 24Q 15-05-2016 10-08-2016 17-08-2016 86 17200 8 2017-18 Q4 26Q 31-05-2017 26-07-2017 31-07-2017 56 11200 ITANOS. 640 TO 647/IND/2018 & ITANO.665 TO 673/IND/2018 SARTHAK REAL BUILT P. LTD. & SARTHAK ORGANIC LTD. 4 6 2014-15 Q4 24Q 15-05-14 18-06-14 25-06-14 37 7,400/- 7 2014-15 Q1 26Q 15-10-13 15-10-13 27-10-13 92 18,400/- 8 2014-15 Q4 26Q 15-05-14 18-06-14 23-06-14 32 6,400/- 9 2015-16 Q4 26Q 15-05-15 10-06-15 13-06-15 26 5,200/- 5. FROM PERUSAL OF THE ABOVE TABLES WE FIND THAT IN THE CASE OF SARTHAK REAL BUILT PRIVATE LIMITED, THE ORDERS PASSED U/S 200A OF THE ACT ARE AFTER 01.06.2015 WHEREAS IN TH E CASE OF PANCHSHEEL ORGANICS LIMITED EXCEPT FOR THE ORD ER U/S 200A OF THE ACT PASSED FOR QUARTER-4 FINANCIAL YEAR 2014-15 RELEVANT TO A.Y. 2015-16 DATED 13.06.2015. AL L THE REMAINING 8 ORDERS U/S 200A OF THE ACT UNDER APPEAL HA VE BEEN PASSED BEFORE 01.06.2015. 6. LD. COUNSEL FOR THE ASSESSEE SUBMITTED WRITTEN SUBMISSIONS ALONG WITH PLACING RELIANCE ON JUDICIAL PRONOUNCEMENT IN SUPPORT OF THE CONTENTION THAT NO FEE U/S 234E OF THE ACT WAS LEVIABLE SINCE THE DATE OF ORD ER PROCESSING THE TDS RETURN U/S 200A OF THE ACT IS BE FORE 01.06.2015 AND THE AMENDMENT WAS BROUGHT IN THE FINANCE ACT, 2015, AMENDING CLAUSE (C) OF SUB-SECTI ON 200A OF THE ACT W.E.F. 01.06.2015 THEREBY PROVIDING THAT WHILE PROCESSING THE TDS RETURN, THE FEE U/S 234E C AN ALSO BE COMPUTED IN ACCORDANCE WITH THE PROVISIONS OF U/S 234E OF THE ACT. ITANOS. 640 TO 647/IND/2018 & ITANO.665 TO 673/IND/2018 SARTHAK REAL BUILT P. LTD. & SARTHAK ORGANIC LTD. 5 7. WITH REGARD TO THE APPEAL WHEREIN ORDER U/S 200A OF THE ACT HAS BEEN PASSED ON OR BEFORE AFTER 01.06.2015, LD. COUNSEL FOR THE ASSESSEE HAS ALSO FILED WRITTEN SUBMIS SIONS IN PLACING RELIANCE ON JUDICIAL PRONOUNCEMENTS CONTEN DING THAT NO FEE SHOULD BE LEVIED U/S 234E OF THE ACT. 8. PER CONTRA LD. DEPARTMENT REPRESENTATIVE (LD. DR) VEHEMENTLY ARGUED SUPPORTING THE ORDERS OF THE LOWER AUTHORITIES. 9. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD PLACED BEFORE US AND ALSO CAREFULLY GONE THROUG H THE WRITTEN SUBMISSIONS FILED BY THE ASSESSEE AS WELL AS JUDGMENTS RELIED THEREIN. THE ISSUE BEFORE US RELATE S TO THE LEVY OF FEE U/S 234E OF THE ACT AND THE PROCESSING STATEMENT FILED U/S 200A OF THE ACT. IN THESE BUNCH OF 17 APPEALS, IN CASE OF 8 APPEALS ORDER U/S 200A OF THE ACT HAS BEEN PASSED BEFORE 01.06.2015. THE DATE 01.06.2015 IS RELEVANT SINCE AN AMENDMENT WAS BROUGHT IN THE FINANCE ACT, 2015 AMENDING CLAUSE (C) OF SECTION 200A OF TH E ACT W.E.F 01.06.2015, EMPOWERING THE REVENUE AUTHORITIES TO CHARGE FEE U/S 234E OF THE ACT IN THE PROCESSING ITANOS. 640 TO 647/IND/2018 & ITANO.665 TO 673/IND/2018 SARTHAK REAL BUILT P. LTD. & SARTHAK ORGANIC LTD. 6 STATEMENTS. IN THE REMAINING 9 APPEALS ORDER U/S 200A OF THE ACT HAVE BEEN PASSED AFTER 01.06.2015. 10. WE FIND THAT SIMILAR ISSUE RAISED BY VARIOUS ASSESS EE(S) IN THESE BUNCH OF APPEALS CAME UP FOR ADJUDICATION BE FORE US IN COMMON GROUP CASES OF M/S EXECUTIVE ENGINEER & OTHERS IN ITA NOS.457 TO 459/IND/2019 & OTHERS VIDE ORDER DATED 26.07.2019 WHEREIN WE HAVE ADJUDICATED THE ISSUES AT LENGTH WITH REGARD TO LEVY OF FEE IN THE ORDER PASSED BEFORE 01.06.2015, FEE U/S 234E CHARGE IN THE ORDERS PASSED ON OR AFTER 01.06.2015 AND ALSO WHETHER THE CENTRAL PROCESSING CELL HAS SUFFICIENT POWER TO LEVY FEE U/S 234E OF THE ACT IN THE ORDER PROCES SED BY THEM. THE RELEVANT FINDING IS REPRODUCED BELOW: 6. AGGRIEVED ASSESSEE(S) ARE IN APPEAL BEFORE THE TRIBUNAL. LD. COUNSEL FOR THE ASSESSEE REPRESENTING THE CAPTIONED ASSESSEES IN THE INSTANT BUNCH OF APPEALS REFERRED AND RELIED BY VARIOUS JUDGMENTS IN THE RESPECTIVE PAPER BOOK FILED IN EACH OF THE CASES. I N NUTSHELL FOLLOWING CONTENTIONS ARE MADE; (I) BEFORE THE AMENDMENT BROUGHT IN BY FINANCE ACT 2015 W.E.F 01.06.2015, REVENUE AUTHORITIES HAVE NO POWER TO LEVY THE FEE U/S 234E OF THE ACT IN THE STATEMENT PROCESSED U/S 200A OF THE ACT. (II) NO SPECIFIC POWERS HAVE BEEN DELEGATED TO THE CENTRAL PROCESSING CELL BY THE BOARD U/S 200A(2) OF THE ACT FOR CHARGING FEE U/S 234E OF THE ACT. (II) IN THE CASES WHERE THE QUARTER FOR FILING TDS RETURN FALLS BEFORE THE DATE ON 01.06.2015 AND THE DUE TAX DEDUC TED HAS ITANOS. 640 TO 647/IND/2018 & ITANO.665 TO 673/IND/2018 SARTHAK REAL BUILT P. LTD. & SARTHAK ORGANIC LTD. 7 ALSO BEEN DEPOSITED BEFORE 01.06.2015 FEE SHOULD NO T BE LEVIED U/S 234E OF THE ACT. 7. PER CONTRA LD. DEPARTMENT REPRESENTATIVE (LD. DR ) VEHEMENTLY ARGUED SUPPORTING THE ORDERS OF THE LOWE R AUTHORITIES AS WELL AS THE JUDGMENTS REFERRED AND R ELIED BY THE LD. CIT(A) IN THEIR APPELLATE ORDER. 8. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD PLACED BEFORE US AND ALSO CAREFULLY GONE THROUGH TH E JUDGMENTS REFERRED AND RELIED BY BOTH ASSESSEE AND REVENUE. T HE COMMON ISSUE RAISED IN ALL THESE APPEALS IS THAT THE LD. C IT(A) ERRED IN CONFIRMING THE LEVY OF FEE U/S 234E OF THE ACT. FOR ADJUDICATION OF THE ISSUE BEFORE US, TWO SECTIONS ARE RELEVANCE NAMELY; 200A AND 234E OF THE ACT. FOR THE SAKE OF CONVENIENCE BO TH THE SECTIONS ARE REPRODUCED BELOW: SECTION 200A (1) WHERE A STATEMENT OF TAX DEDUCTION AT SOURCE HA S BEEN MADE BY A PERSON DEDUCTING ANY SUM (HEREAFTER REFER RED TO IN THIS SECTION AS DEDUCTOR) UNDER SECTION 200, SUC H STATEMENT SHALL BE PROCESSED IN THE FOLLOWING MANNE R, NAMELY: (A ) THE SUMS DEDUCTIBLE UNDER THIS CHAPTER SHALL BE COMPUTED AFTER MAKING THE FOLLOWING ADJUSTMENTS, NAMELY: (I) ANY ARITHMETICAL ERROR IN THE STATEMENT; OR (II) AN INCORRECT CLAIM, APPARENT FROM ANY INF ORMATION IN THE STATEMENT; (B ) THE INTEREST, IF ANY, SHALL BE COMPUTED ON TH E BASIS OF THE SUMS DEDUCTIBLE AS COMPUTED IN THE STATEMENT; (C) THE FEE, IF ANY, SHALL BE COMPUTED IN ACCORDANCE WITH THE PROVISIONS OF SECTION 234E; 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 ITANOS. 640 TO 647/IND/2018 & ITANO.665 TO 673/IND/2018 SARTHAK REAL BUILT P. LTD. & SARTHAK ORGANIC LTD. 8 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.'. SECTION 234E 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 SE CTION 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 AMOUNT 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 ACCORDANCE WITH SUB-SECTION (3) OF SEC TION 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 TH E PROVISO TO SUB-SECTION (3) OF SECTION 206C WHICH IS TO BE DELIVERED OR CAUSED TO BE DELIVERED FOR TAX DEDUCTED AT SOURCE O R TAX COLLECTED AT SOURCE, AS THE CASE MAY BE, ON OR AFTE R THE 1ST DAY OF JULY, 2012. 9. IN SECTION 200A OF THE ACT AN AMENDMENT WAS BROU GHT BY FINANCE ACT 2015 W.E.F 01.06.2015 BY VIRTUE OF WHIC H CLAUSE (C) TO (F) WERE SUBSTITUTED FOR CLAUSE (C) TO (E). WITH THIS AMENDMENT REVENUE AUTHORITIES GOT SUFFICIENT POWER TO LEVY FE E U/S 234E OF THE ACT WHILE PROCESSING THE STATEMENT OF TAX DEDUC TED AT SOURCE AS PROVIDED U/S 200A(1) OF THE ACT, IN THE C ASES WHERE ITANOS. 640 TO 647/IND/2018 & ITANO.665 TO 673/IND/2018 SARTHAK REAL BUILT P. LTD. & SARTHAK ORGANIC LTD. 9 THE ORDER OF CPC ARE PASSED ON DATE FALLING BEFORE DATE OF AMENDMENT I.E. 01.06.2015. WE HAVE TAKEN A CONSISTE NT VIEW THAT REVENUE AUTHORITIES HAD NO JURISDICTION TO LEV Y FEE U/S 234E OF THE ACT IN THE STATEMENT PROCESSED U/S 200A OF T HE ACT, BEFORE THE DATE OF AMENDMENT SINCE THE AMENDMENT IS NOT CLARIFICATORY BUT PROSPECTIVE IN NATURE. THIS VIEW WAS TAKEN BY US BY REFERRING TO VARIOUS JUDGMENTS OF HON'BLE HIG H COURT INCLUDING THE JUDGMENT OF HON'BLE KARNATAKA HIGH COURT IN THE CASE OF FATEHRAJ SINGHVI VS UOI (2016) 289 CTR 0602 AND APPLYING THE SAME TO DECIDE THE CASES OF BHUPESH KUMAR J. SANGHVI AND OTHERS IN ITANOS.15 TO 21/IND/2018 & OTHERS VIDE ORDER DATED 22.01.2019 AN D IN THE CASE OF STATE BANK OF INDIA, GENDA CHOWK AND OTHER S VS. DCIT(TDS), IN ITANOS. 727 & 737/IND/2017 AND OTHERS DATED 13.11.2018. 10. NOW WE FIRST TAKE IN ITANO. 422/IND/2019 IN THE CASE OF ROHIT SINGH FOR WHICH RETURN OF Q-4 FOR F.Y.2014-15, DATE OF FILING TDS RETURN IS 02.02.201 5, CPC PASSED THE ORDER ON 09.01.2017 WHEREIN FEE U/S 234E WAS LEVIED AT RS.36,759/-. PROVISO TO SECTION 200A(1) OF THE ACT, CONTEMPLATES THAT NO INTIMATIO N UNDER THIS SUB-SECTION SHALL BE SENT AFTER THE EXPI RY OF ONE YEAR FROM THE END OF THE FINANCIAL YEAR IN THE STATEMENT IS FILED. 11. NOW, APPLYING THIS PROVISO ON THE FACTS OF THE CASE, WE FIND THAT THE ASSESSEE FILED TDS RETURN DURING F .Y. 2014-15. LAST DATE BY WHICH THE INTIMATION COULD HA VE BEEN SENT BY THE CPC WAS 31.03.2016 WHEREAS THE DATE OF CPC ORDER FOR Q-4 FOR F.Y. 2013-14 IS 09.01.2017. IT CLEARLY SHOWS THAT THE ORDER OF CPC IS BARRED BY LIMITATION AND THE SAME IS LIABLE TO BE QUASHED. WE ACCORDINGLY QUASH THE ORDER OF CPC AND DELETED THE LEVY OF FEE OF RS.36,759/- AND ALLOW TH E APPEAL OF THE ASSESSEE IN ITANO.422/IND/2019. 12. AS FAR AS ALL THE REMAINING CASES ARE CONCERNED THE DATE OF FILING THE TDS RETURN AS WELL AS THE DATE O F CPC ITANOS. 640 TO 647/IND/2018 & ITANO.665 TO 673/IND/2018 SARTHAK REAL BUILT P. LTD. & SARTHAK ORGANIC LTD. 10 ORDER ARE FALLING BEYOND 01.06.2015 I.E. POST AMENDMENT BROUGHT BY THE FINANCE ACT 2015. IN THESE CASES ONE OF THE COMMON CONTENTIONS WAS THAT IN THE CASE OF TDS QUARTER WHICH RELATED TO F.Y. 2014-15 A ND THE EARLIER YEARS TAX DEDUCTED AT SOURCE HAS BEEN DEPOSITED BEFORE THE DATE OF AMENDMENT I.E. 01.06.2015, FEE U/S 234E CANNOT BE LEVIED. FROM GOI NG THROUGH THE PROVISIONS OF SECTIONS 234E AND 200A OF THE ACT WE FIND THAT THE PROVISION FOR LEVYING FEE FOR DEFAULT IN FURNISHING STATEMENT WAS INSERTED W.E.F 01.07.20 12. THE POWER TO PROCESS THE STATEMENT OF TAX DEDUCTED AT SOURCE ARE PROVIDED IN SECTION 200A OF THE ACT. THE DATE OF CPC ORDER IS THE YARDSTICK TO EXAMINE THE APPLICABILITY OF THE AMENDMENT BROUGHT BY THE FINAN CE ACT 2015 W.E.F 01.06.2015. IN OUR CONSIDERED VIEW I F THE DEFAULT IS COMMITTED BY A PERSON IN DELIVERING THE TDS STATEMENT WITHIN THE TIME PRESCRIBED IN SUB-SEC TION (3) OF SECTION 200 OF THE ACT OR PROVISO TO SUB-SE CTION (3) OF SECTION 206C OF THE ACT, FROM 01.07.2012 PROVISION OF SECTION 234E OF THE ACT COMES INTO OPERATION AND IF THE DEFAULT CONTINUES AND THE CPC ORDER IS PASSED ON AND AFTER 01.06.2015 THEN EVEN I F THE CPC ORDER RELATES TO QUARTERS FOR F.Y. 2014-15 AND EARLIER YEARS, AND THE TAX HAS BEEN DEPOSITED BEFOR E 01.06.2015 WILL HAVE NO RELEVANCE. THIS CONTENTIONS OF THE LD. COUNSEL FOR THE ASSESSEE HAS NO MERITS. 13. AS REGARDS THE SECOND CONTENTION BY LD. COUNSEL FOR THE ASSESSEES THAT CPC DO NOT HAVE SPECIFIC POWER F OR BOARD TO LEVY FEE U/S 234E OF THE ACT. WE FIND NO M ERIT IN THIS CONTENTION ALSO BECAUSE IN THE CENTRALISED PROCESSING CELL STATEMENTS OF TAX DEDUCTED AT SOURC E SCHEME OF 2013 BROUGHT NOTIFICATION DATED 15.01.20 13 SECTION 5(1) OF THIS NOTIFICATION READS THAT THE CE LL SHALL PROCESS THE STATEMENT OF TAX DEDUCTED AT SOURCE FURNISHED BY A DEDUCTOR IN THE MANNER SPECIFIED UND ER SUB-SECTION (1) OF SECTION 200A OF THE ACT AFTER TA KING INTO ACCOUNT THE INFORMATION CONTAINED IN THE CORRE CTION STATEMENT OF TAX DEDUCTED AT SOURCE, IF ANY, FURNIS HED ITANOS. 640 TO 647/IND/2018 & ITANO.665 TO 673/IND/2018 SARTHAK REAL BUILT P. LTD. & SARTHAK ORGANIC LTD. 11 BY THE DEDUCTOR BEFORE THE DATE OF PROCESSING. THUS THERE IS A CLEAR PROVISION IN THE SCHEME GIVING POW ERS TO THE CPC TO PROCESS THE TDS RETURN ANY THE MANNER AS SPECIFIED U/S 200A(1) OF THE ACT WHICH PROVIDES THA T THE STATEMENT SHALL BE PROCESSED WITH REGARD TO THE TAX DEDUCTED, ARITHMETICAL ERROR INCORRECT CLAIM, INTER EST AS WELL AS THE FEE U/S 234E OF THE ACT AND OTHER ADJUSTMENT AS PROVIDED IN SUB-SECTION (1) OF SECTIO N 200A OF THE ACT. SO IN OUR CONSIDERED VIEW CPC HAVE SUFFICIENT POWER TO LEVY FEE U/S 234E OF THE ACT FO R LATE FILING OF TDS RETURN. 14. NOW COMING TO THE LAST CONTENTION AS WELL AS MA IN ISSUE THAT WHETHER IN ALL THE REMAINING CASES EXCEP T THAT OF ROHIT SINGH IN ITANO.422/IND/2019 WHETHER T HE LD. CIT(A) WAS JUSTIFIED IN LEVYING THE FEE U/S 234 E OF THE ACT. THE COMMON FACT IN ALL THESE CASES ARE THA T THE DATE OF FILING TDS RETURN AS WELL AS DATE OF CPC OR DER IS AFTER 01.06.2015. WE OBSERVE THAT RECENTLY COORDINA TE BENCH OF JAIPUR IN THE CASE OF SHRI UTTAM CHAND GAN GWAL VS ACIT IN ITA NO. 764/JP/2017 DATED 23/01/2019 ADJUDICATED THE SIMILAR ISSUE OF LEVY OF FEE U/S 23 4E OF THE ACT IN THE TDS RETURN AND THE CPC ORDER PASSED AFTER 01 .06.2015. FOLLOWING DECISION WAS RENDERED BY THE COORDINATE B ENCH: IN THE INSTANT CASE, THE ASSESSEE FILED ITS TDS RET URN IN FORM NO. 26Q FOR THE QUARTER ENDED 31ST MARCH, 2015 ON 22ND JULY, 2015 AND THE SAME WAS PROCESSED AND AN INTIMATION D ATED 30 JULY, 2015 WAS ISSUED BY THE AO U/S 200 A OF THE ACT . THUS, BOTH THE FILING OF THE RETURN OF INCOME BY THE ASSE SSEE AND PROCESSING THEREOF HAS HAPPENED MUCH AFTER 1.6.2015 I.E, THE DATE OF ASSUMPTION OF JURISDICTION BY THE AO U/S 20 0A(1)(C) TO LEVY FEES UNDER SECTION 234E OF THE ACT. EVEN THOUGH THE QUARTERLY RETURN PERTAINS TO QUARTER ENDED 31.3.201 5, THE FACT REMAINS THAT THERE IS A CONTINUING DEFAULT EVEN AFT ER 1.6.2015 AND THE RETURN WAS ACTUALLY FILED ON 22.07.2015. TH E SAID PROVISIONS CANNOT BE READ TO SAY THAT WHERE AN ASSE SSEE FILE HIS RETURN OF INCOME FOR THE PERIOD FALLING AFTER 1.6.2 015 AND THERE IS A DELAY ON HIS PART TO FILE THE RETURN IN TIME, HE WILL SUFFER THE ITANOS. 640 TO 647/IND/2018 & ITANO.665 TO 673/IND/2018 SARTHAK REAL BUILT P. LTD. & SARTHAK ORGANIC LTD. 12 LEVY OF FEES, HOWEVER, AN ASSESSEE WHO HAS DELAYED THE FILING OF THE RETURN OF INCOME EVEN PERTAINING TO THE PERIOD PRIOR TO 1.06.2015, HE CAN BE ABSOLVED FROM SUCH LEVY EVEN T HOUGH THERE IS A CONTINUOUS DEFAULT ITA NO. 764/JP/2017 S HRI UTTAM CHAND GANGWAL, AJMER VS. ACIT, GHAZIABAD ON HIS PAR T EVEN AFTER 1.6.2015. IN OUR VIEW, THE AO HAS ACQUIRED TH E JURISDICTION TO LEVY THE FEES AS ON 1.06.2015 AND THEREFORE, ANY RETURN FILED AND PROCESSED AFTER 1.6.2015 WILL FALL WITHIN HIS J URISDICTION WHERE ON OCCURRENCE OF ANY DEFAULT ON PART OF THE A SSESSEE, HE CAN LEVY FEE SO MANDATED U/S 234E OF THE ACT. THERE FORE, IRRESPECTIVE OF THE PERIOD TO WHICH THE QUARTERLY R ETURN PERTAINS, WHERE THE RETURN IS FILED AFTER 1.6.2015, THE AO CA N LEVY FEE UNDER SECTION 234E OF THE ACT. AT THE SAME TIME, IN TERMS OF DETERMINING THE PERIOD FOR WHICH FEES CAN BE LEVIED , ONLY SAVING COULD BE THAT FOR THE PERIOD OF DELAY FALLING PRIOR TO 1.06.2015, THERE COULD NOT BE ANY LEVY OF FEES AS THE ASSUMPTI ON OF JURISDICTION TO LEVY SUCH FEES HAVE BEEN HELD BY TH E COURTS TO BE PROSPECTIVE IN NATURE. HOWEVER, WHERE THE DELAY CON TINUES BEYOND 1.06.2015, THE AO IS WELL WITHIN HIS JURISDI CTION TO LEVY FEES UNDER SECTION 234E FOR THE PERIOD STARTING 1.06.2015 TO THE DATE OF ACTUAL FILING OF THE TDS RETURN. IN LIGHT O F THE SAME, IN THE INSTANT CASE, THE LEVY OF FEES UNDER SECTION 234E IS UPHELD FOR THE PERIOD 1.06.2015 TO THE DATE OF ACTUAL FILING O F THE TDS RETURN WHICH IS 22.07.2015 AND THE BALANCE FEE SO L EVIED IS HEREBY DELETED. IN THE RESULT, THE GROUND OF APPEAL IS PARTLY ALLOWED. 15. FROM PERUSAL OF THE ABOVE DECISION WE FIND THAT THE ISSUE BEFORE US IS SIMILAR TO THE ISSUE ADJUDIC ATED BY THE COORDINATE BENCH AND WE ACCORDINGLY HOLD THA T THE LD. CIT(A) HAS RIGHTLY CONFIRMED THE LEVY OF FE E U/S 234E OF THE ACT BY THE CPC,HOWEVER WE DIRECT THE REVENUE AUTHORITIES TO MAKE NECESSARY VERIFICATION IN EACH OF THE CASE SO AS TO LOOK INTO THE FACT THAT I N CASE IF ANY FEE U/S 234E IS LEVIED FOR THE DELAY IN FILI NG RETURN FOR THE PERIOD BEFORE 01.06.2015, THE SAME I S DIRECTED TO BE DELETED AND THE REMAINING FEE LEVIED FOR THE DEFAULT COMMITTED FROM 01.06.2015 ONWARDS NEEDS TO BE CONFIRMED. ITANOS. 640 TO 647/IND/2018 & ITANO.665 TO 673/IND/2018 SARTHAK REAL BUILT P. LTD. & SARTHAK ORGANIC LTD. 13 11. FROM PERUSAL OF THE ABOVE FINDING OF THE TRIBUNAL GIVEN BY UNDERSIGNED OF THIS ORDER, WE FIND THAT THE ISSUE S RAISED IN THE INSTANT APPEALS ARE COVERED BY THIS DECISION. IN THE LIGHT OF THE SAME THE INSTANT APPEALS ARE DECIDED AS FOLL OWS: (I) IN ITANOS.665/IND/2018 TO 672/IND/2018 IN THE C ASE OF PANCHSHEEL ORGANICS LIMITED, SINCE ORDER U/S 200A OF THE ACT WAS PASSED BEFORE AN AMENDMENT CAME INTO EFFECT FRO M 01.06.2015 IN SECTION 200A(C) OF THE ACT, LATE FEE L EVIED U/S 234E OF THE ACT BY THE LD. AO WAS NOT JUSTIFIED AND W E ACCORDINGLY DELETE THE SAME. (II) AS REGARDS IN ITANO. 673/IND/2018 IN THE CASE OF PANCHSHEEL ORGANICS LIMITED AND 8 APPEALS IN THE CASE OF SARTHAK REAL BUILT PRIVATE LIMITED APPEARING ITANOS. 640/IND/2018 TO 647/IND/2018 THE DATE OF ORDER PASSED BY CPC U/S 200A OF THE ACT IS AFTER 01.06.2015, THER EFORE THE ASSESSEE(S) WILL FAIL TO GET ANY RELIEF. ACCORDIN GLY, LEVY OF FEE U/S 234E OF THE ACT IS SUSTAINED FOR ITANO. 673/IND/2018 & ITANOS. 640/IND/2018 TO 647/IND/2018 . ITANOS. 640 TO 647/IND/2018 & ITANO.665 TO 673/IND/2018 SARTHAK REAL BUILT P. LTD. & SARTHAK ORGANIC LTD. 14 13. IN THE RESULT, APPEALS OF ASSESSEE IN ITA NOS.665 TO 672/IND/2018 ARE ALLOWED AND ITANOS. 640 TO 647/IND/2018 & ITANOS.673/IND/2018 ARE DISMISSED ORDER WAS PRONOUNCED IN THE OPEN COURT ON 06 .08.2 019. SD/- (KUL BHARAT) SD/- (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER INDORE; DATED : 06/08/2019 CTX? P.S/. . . COPY TO: ASSESSEE/AO/PR. CIT/ CIT (A)/ITAT (DR)/GUAR D FILE. BY ORDER ASSISTANT REGISTRAR, INDORE
Mehul