Additional DIGP, Gurgaon V. DCIT, TDS, Gurgaon

ITA 7558/DEL/2017

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 9600 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 6 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-07-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 18-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KIRTI S
• Keywords: TDS
• Section: 234E; 200A; 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A, NEW DELHI BEFORE SH. AMIT SHUKLA, JUDICIAL MEMBER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER ITA NO. 7558/DEL/2017 : ASSTT. YEAR: 2014-15 ADDITIONAL DIGP, CRPF CAMP, GROUP CENTRE, KADARPUR, GURGAON VS DCIT, TDS GURGAON (APPELLANT ) (RESPONDENT) PAN NO. RTKA03796C ASSESSEE BY : NONE REVENUE BY : SMT. KIRTI. S., SR. DR DATE OF HEAR ING: 1 3 . 07 .20 21 DATE OF PRONOUNCEMENT: 13 .0 7 .20 2 1 ORDER PER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER: THE PRESENT APPEAL HAS BEEN INSTITUTED BY THE ASSE SSEE AGAINST THE ORDERS OF LD. CIT (A)-2, GURGAON DATED 20.09.2017. 2. THE DCIT(TDS-CPC) ISSUED NOTICE FOR PAYMENT OF RS.1,27,000/- FOR THE PAYMENT OF LATE FEE U/S 200A OF THE INCOME TAX ACT, 1961 FOR DELAY IN FILING OF QUARTER LY TDS STATEMENT FOR FOURTH QUARTER FOR THE FINANCIAL YEAR 2013-14 & FOR ALL THE QUARTERS OF F.Y. 2014-15. 3. THE LD. CIT (A) HELD THAT THE FEE WAS LEVIABLE U /S 200A FOR FILING OF RETURNS. THE PROVISIONS OF 200A(1)(C) INS ERTED BY THE FINANCE ACT 2015 W.E.F. 01.06.2015 READS AS UNDER: ITA NO. 7558/DEL/2017 ADDITIONAL DIGP 2 200A. (1) WHERE A STATEMENT OF TAX DEDUCTION AT SO URCE OR A CORRECTION STATEMENT HAS BEEN MADE BY A PERSON DEDUCTING ANY S UM (HEREAFTER REFERRED TO IN THIS SECTION AS DEDUCTOR) UNDER SECT ION 200, SUCH 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 INFORMAT ION IN THE STATEMENT; (B) THE INTEREST, IF ANY, SHALL BE COMPUTED ON THE BASIS OF THE SUMS DEDUCTIBLE AS COMPUTED IN THE STATEMENT; (C) THE FEE, IF ANY, SHALL BE COMPUTED IN ACCORDANC E WITH THE PROVISIONS OF SECTION 234E; 4. THE ISSUE OF LEVY OF FEE U/S 234E WHICH WAS INTR ODUCED W.E.F. 01.06.2015 HAS BEEN EXAMINED IN THE CONTEXT OF ITS APPLICABILITY WHETHER RETROSPECTIVE OR PROSPECTIVE. 5. THE HONBLE KARNATAKA HIGH COURT IN CASE OF FATE HRAJ SINGHVI & ORS. VS. UOI & ORS. 2016 (9) TMI 964 IS I N FAVOUR OF THE ASSESSEE HOLDING THAT THE AMENDMENTS BROUGHT IN STATUTE W.E.F. 01.06.2015 ARE PROSPECTIVE IN NATURE AND AS SUCH, NOTICES ISSUED U/S 200A OF THE ACT FOR COMPUTATION AND INTIMATION OF PAYMENT OF LATE FILING FEE U/S 234E O F THE ACT RELATING TO THE PERIOD OF TAX DEDUCTION PRIOR TO 01 .06.2015 WAS NOT MAINTAINABLE. ITA NO. 7558/DEL/2017 ADDITIONAL DIGP 3 6. AT THE SAME TIME, THE HONBLE GUJARAT HIGH COURT IN CASE OF RAJESH KOURANI VS. UOI (2017) 83 TAXMANN.COM 137 HAS DECIDED THE ISSUE AGAINST THE ASSESSEE. 7. SO, IN THESE CIRCUMSTANCES, WE ARE OF THE CONSID ERED VIEW THAT FOLLOWING THE DECISION RENDERED BY HONBLE SUP REME COURT IN THE CASE OF VEGETABLE PRODUCTS LIMITED 88 ITR 19 2 (SC) THAT WHEN THERE ARE CONFLICTING DECISIONS, THE VIEW TAKE N IN FAVOUR OF THE ASSESSEE SHOULD BE FOLLOWED, THE IMPUGNED ORDER PASSED BY THE LD. CIT (A) CONFIRMING THE LATE FEE LEVIED BY T HE AO U/S 200A READ WITH SECTION 234E AS THE DEFAULTS ARE PRI OR TO 01.06.2015, IS NOT SUSTAINABLE IN THE EYES OF LAW, HENCE FEE LEVIED U/S 234E IS ORDERED TO BE DELETED. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON 13/07/2021. SD/- SD/- (AMIT SHUKLA) ( DR. B. R. R. KUMAR) JUDICIAL MEMBER ACCOU NTANT MEMBER DATED: 13/07/2021 *SUBODH* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR