Appeal details
Counselvise Citation
[2024] 101 COUNSELVISE.COM (IT) 5842 (ITAT-SURAT)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
1 year(s) 5 month(s) 7 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
08-07-2024
Appeal Filed By
Assessee
Order Result
Dismissed
Bench Allotted
DB
Next Hearing Date
07-07-2024
Assessment Year
2017-2018
Appeal Filed On
01-02-2023
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND SHRI BIJAYANANDA PRUSETH, ACCOUNTANT MEMBER ITA Nos. 80 to 87/Srt/2023 (AY: 2016-17 to 2018-19 (Q-1 to Q-4) (Physical hearing) R. K. Infratel Limited, 13 to 18, Annapurna Shopping Centre, Adajan Patia, Rander Road, Surat-395009. PAN No. AABCR 7805 C Vs. Assistant/Deputy Commissioner of Income Tax, Circle-TDS, Aayakar Bhavan, Surat. Appellant/ assessee Respondent/ revenue Assessee represented by Shri P.M. Jagasheth Sheth, C.A. Department represented by Shri Vinod Kumar, Sr. DR. Date of hearing 08/07/2024 Date of pronouncement 09/07/2024 Order under Section 254(1) of Income Tax Act PER: BENCH: 1. This group of eight appeals by the assessee are directed against the separate orders of National Faceless Appeal Centre, Delhi (NFAC)/Commissioner of Income Tax (Appeals), (in short, the ld. CIT(A)) all dated 22/11/2022 for the Assessment Year (AY) 2016-16 to 2018-19 (Q-1 to Q-4). In all these appeals, certain facts are common, therefore, with the consent of parties all these appeals were clubbed, heard together and are decided by common order to avoid the conflicting decision. For appreciation of facts, the facts in ITA No. 80/Srt/2023 for A.Y. 2016-17 (Q-1) is treated as lead case. In this appeal, the assessee has raised following grounds of appeal: “1. On the facts and in the circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Appeals) has erred in confirming Default summary for Q1 of FY 2015-16 generated by TDS, CPC as per default summary details: - Interest on late payment of Rs. 2,44,525.50/- ITA No.80 to 87/Srt/2023 R.K. Infratel Ltd. Vs A/DCIT 2 - Late filing Levy of Rs. 1,00,400/- 2. On the facts and in the circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Appeals) has erred in confirming the action of the TDS, CPC for issuing default summary and raised demand. 3. On the facts and in the circumstances of the case as well as law on the subject, we seek the waiver of the said demand as generated by the TDS CPC. 4. Appellant craves lave to add, alter or delete any ground(s) either before or in the course of the hearing of the appeal.” 2. Rival submissions of both the parties have been heard and record perused. The learned Authorised Representative (ld. AR) of the assessee furnished following summary with regard to all the appeals showing their quarter, assessment year, interest on late payment, late filing fees and interest under Section 220(2) of the Income Tax Act, 1961 (in short, the Act) in the following manner: A B C D E F G H Sr. No. Appeal No. Quarter Asstt Year Interest on late payment Late filing fees Interest U/s 220(2) Total 1 80/Srt/2023 Q1 2016-17 244,525.50 -- -- 244,525.50 2 81/Srt/2023 Q2 2016-17 197,830.50 82,200.00 -- 280,030.50 3 82/Srt/2023 Q3 2016-17 360,346.50 63,600.00 116,620.00 540,566.50 4 83/Srt/2023 Q4 2016-17 48,825.00 49,400.00 -- 98,225.00 5 85/Srt/2023 Q4 2017-18 42,396.00 -- -- 42,396.00 6 87/Srt/2023 Q4 2018-19 51,990.00 200.00 21,859.00 74,049.00 945,913.50 195,400.00 138,479.00 1,279,792.50 7 84/Srt/2023 Q4 2017-18 Short Deduction 2259.85 Interest against processing of latest correction 110953.50 Interest on short deduction 220.00 113433.35 8 86/Srt/2023 Q4 2018-19 Interest against processing of latest correction 41727.00 Total 1,434,952.85 The ld. AR of the assesse fairly submits that the interest shown in the Column E and G are not appealable. The ld AR for the assessee submits that the assessee could not deposit such TDS due to financial crunch as the creditors have initiated insolvency proceedings against the assessee before National Company Law Tribunal. Further the issue on late fees charges in ITA No. 81 ITA No.80 to 87/Srt/2023 R.K. Infratel Ltd. Vs A/DCIT 3 to 83, 85 & 87/Srt/2023 is covered against the assessee by the decision of Hon’ble Jurisdictional High Court in Rajesh Kourani Vs Union of India (2017) 83 taxmann.com 137 (Guj). 3. On the other hand, the learned Senior Departmental Representative (ld. Sr. DR) for the revenue submits that the assessee is not eligible for any relief, much less claimed in the present appeal. Relief available to the assessee has already been allowed by the ld. CIT(A) in one of the appeal in Q-1 for AY 2016- 17. 4. We have considered the rival submissions of both the parties and have gone through the orders of lower authorities carefully. We find that the CPC(TDS), Ghaziabad while processing the TDS statement for Quarter No. 1 (Q1) in From 26A for F.Y. 2015-16 (A.Y. 2016-17) levied the interest on late payment of Rs. 2,44,525/- and late fees under Section 234E of the Act of Rs. 1,00,400/- vide order dated 01/12/2016. Aggrieved by the late fees charges and interest, the assessee filed appeal before the ld. CIT(A). Before the ld. CIT(A), the assessee relied on various case laws including on the decision of Hon’ble Karnataka High Court in Fatehraj Singhvi & Ors Vs Union of India (2016) 289 CTR 602 wherein it was held that the amendment under Section 200A came into force from 01/06/2015. The ld. CIT(A) in para 5.3 of his order, held that prior to 01/06/2015, the Assessing Officer was not empowered to charge late fees under Section 234E of the Act, thus, the late fees charges prior to 01/06/2015 of Rs. 1,00,400/- was deleted and interest on late payment under Section 200A (shown in column –A of table) was upheld. Further aggrieved, the assessee has filed present appeal before this Tribunal. Before us, the ld. AR of the ITA No.80 to 87/Srt/2023 R.K. Infratel Ltd. Vs A/DCIT 4 assesse fairly accepted that the interest on late payment is not appealable, thus, considering the submission of ld. AR of the assessee, the sole ground of appeal raised by the assessee is dismissed. 5. In the result, this appeal being ITA No. 80/Srt/2023 of assessee is dismissed. 6. ITA No. 81, 82, 83, 85 & 87/Srt/2023. We find that in all five aforesaid appeals, the Assessing Officer/CPC (TDS) levied interest on late payment which is not appealable. The issue of late filing fees under Section 234E of the Act for default in filing statement is against the assessee by the decision of Hon’ble Jurisdictional High Court in Rajesh Kourani Vs Union of India (Supra) wherein it was held that Section 234E of the Act is a charging provision creating a charge for levying fee for certain defaults in filing statements and fee prescribed under Section 234E could be levied even without a regulatory provision being found in Section 200A for computation of fee. Thus, respectfully following the decision of Hon’ble Jurisdictional High Court, levy of late fee charges is upheld. So far as issue of interest under Section 220A is concerned which is the subject matter in ITA No. 82/Srt/2023, 85/Srt/2023 and in ITA No. 87/Srt/2023 are concerned, the same is also not appealable order, therefore, corresponding grounds of appeal are also dismissed. 7. In ITA No. 84/Srt/2023, the assessee has raised issue against short deduction of Rs. 2,259/-, interest against processing of late correction of Rs. 1,10,953/- and interest on short deduction of Rs. 220/- and in ITA No. 86/Srt/2023, the assessee has raised ground against interest against processing of latest correction. We find that during the hearing, no specific ITA No.80 to 87/Srt/2023 R.K. Infratel Ltd. Vs A/DCIT 5 submission is made by the assessee, therefore, such grounds of appeal are treated as not pressed and dismissed as such. In the result, the grounds of appeal raised in ITA No.(s) 81 to 87/Srt/2023 are dismissed. 8. In the final result, all eight appeals of the assessee are dismissed. Order pronounced in the open court on 09 th July, 2024. Sd/- Sd/- (BIJAYANANDA PRUSETH) (PAWAN SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Surat, Dated: 09/07/2024 *Ranjan Copy to: 1. Assessee 2. Revenue 3. CIT 4. DR 5. Guard File By order Sr. Private Secretary, ITAT, Surat
