High Power Transmitter Doordarshan, Calicut V. ACIT, CPC, TDS, Kozhikode, Kozhikode

ITA 93/COCH/2022

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 2757 (ITAT-COCHIN)
• Duration Of Justice: 3 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-06-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Appeal Filed On: 06-03-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: TDS
• Section: 234E; 200A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN Before Shri George George K, JM & Shri Laxmi Prasad Sahu, AM ITA No.92/Coch/2022 : Asst.Year 2013-2014 ITA No.93/Coch/2022 : Asst.Year 2014-2015 High Power Transmitter Doradarshan Medical College Calicut – 673 008. PAN : CHNHO0210A v. The Assistant Commissioner of Income-tax, CPC-TDS Calicut. (Appellant) (Respondent) Appellant by : --- None --- Respondent by : Smt.J.M.Jamunna Devi, Sr.DR Date of Hearing : 27.06.2022 Date of Pronouncement : 27.06.2022 O R D E R Per George George K, JM : These appeals at the instance of the assessee are directed against two orders of the CIT(A), both dated 23.12.2021. The relevant assessment years are 2013-2014 and 2014-2015. None appeared on behalf of the assessee, however, we proceed to dispose the appeals on merits. 3. The solitary issue raised in these appeals is whether the CIT(A) has erred in confirming the Assessing Officer’s order u/s 200A of the I.T.Act, wherein he levied late fees u/s 234E of the I.T.Act. 4. The brief facts of the case are as follows: The assessee is Government Organisation. For the assessment years 2013-2014 and 2014-2015, the assessee has filed TDS returns in Form No.24Q for the quarter Q3 for ITA Nos.92 & 93/Coch/2022. High Power Transmittger Doradarshan. 2 F.Y.2012-2013 and Q4 for F.Y. 2013-2014, belatedly. The Assessing Officer levied fees amounting to Rs.17,400 (for F.Y. 2012-2013) and Rs.4,710 (for F.Y.2013-2014) u/s 234E r.w.s. 200A of the I.T.Act for late filing of 24Q of the said quarters. 5. Aggrieved by the orders of the Assessing Officer, the assessee filed appeals before the first appellate authority. The CIT(A) confirmed the A.O.’s orders for levying fees u/s 234E of the I.T.Act. 6. Aggrieved by the orders of the CIT(A), the assessee has filed these appeals before the Tribunal. 7. The learned Departmental Representative relied on the order of the CIT(A). 8. We have heard the learned DR and perused the material on record. The assessee has filed belatedly TDS returns in Form No.24Q for the quarter 3 for F.Y. 2012-2013 and quarter 4 for F.Y.2013-2014. The Assessing Officer cannot make any adjustment other than one prescribed in section 200A of the Act. Prior to 01.06.2015, there was no enabling provision in section 200A of the Act for making adjustment in respect of statement filed by the assessee with regard to tax deducted at source by levying fees u/s 234E of the Act. The Parliament for the first time enabled the Assessing Officer to make adjustment by levying fees u/s 234E of the Act with effect from 01.06.2015. The Hon’ble jurisdictional High Court in the case of Olari Little Flower Kuries (P.) Ltd. v. Union of India reported ITA Nos.92 & 93/Coch/2022. High Power Transmittger Doradarshan. 3 in (2022) 440 ITR 26 (Ker.), has held that since provision of section 200A of the I.T.Act was amended to enable computation of fee payable u/s 234E of the I.T.Act at the time of processing of return and said amendment came into effect from 01.06.2015 (in view of CBDT Circular No.19 of 2015 dated 17.11.2015) intimations issued u/s 200A of the I.T.Act dealing with fee for belated filing of TDS returns for the period prior to 01.06.2015 were invalid and were to be set aside. Therefore, going by the dictum laid down by the Hon’ble jurisdictional High Court judgment in the case of Olari Little Flower Kuries (P.) Ltd. v. Union of India (supra), the levy of late fee for the various quarters for financial years 2012-2013 and 2014-2015 cannot be sustained in order passed u/s 200A of the I.T.Act, prior to 01.06.2015. 8.2 It is to be mentioned that the judgment of the Hon’ble Kerala High Court in the case of Sree Narayana Guru Smaraka Sangam Upper Primary School v. Union of India and Others reported in 392 ITR 457 (Ker.) was primarily concerned with the constitutional validity of section 234E of the I.T.Act. The Hon’ble Kerala Court was not adjudicating the issue whether the amendment to section 200A of the I.T.Act with effect from 01.06.2015 has retrospective effect or not. As mentioned earlier, the amendment to section 200A of the I.T.Act whether it applicable from 01.06.2015 has been decided in favour of the assessee by the judgment of the Hon’ble Kerala High Court in the case of Olari Little Flower Kuries (P.) Ltd. v. Union of India (supra). ITA Nos.92 & 93/Coch/2022. High Power Transmittger Doradarshan. 4 8.3 The Hon’ble Kerala High Court in the case of M/s.Sarala Memorial Hospital v. Union of India reported in WP(C) No.37775 of 2018 (judgment dated 18 th December, 2018) has distinguished the Hon’ble Gujarat High Court judgment in the case of Rajesh Kourani v. Union of India reported in (2017) 83 taxmann.com 137 (Gujarat). The Hon’ble Kerala High Court had disposed of the Writ Petition in favour of the assessee, stating that there is cleavage in judicial opinion and the judgment in the case of Shri Rajesh Kourani v. Union of India (supra) has not considered CBDT Circular No.19 of 2015, which has clearly emphasized that the amendment would take effect only from 01.06.2015. Therefore, it was concluded by the Hon’ble Kerala High Court that the amendment relating to section 200A of the I.T.Act is prospective with effect from 01.06.2015. In view of the aforesaid reasoning and the judgments of the Hon’ble jurisdictional High Court, cited supra, we allow the claim of the assessee. 9. In the result, the appeals filed by the assessees are allowed. Order pronounced on this 27 th day of June, 2022. Sd/- (Laxmi Prasad Sahu) Sd/- (George George K) ACCOUNTANT MEMBER JUDICIAL MEMBER Kochi; Dated : 27 th June, 2022. Devadas G* ITA Nos.92 & 93/Coch/2022. High Power Transmittger Doradarshan. 5 Copy to : 1. The Appellant. 2. The Respondent. 3. The CIT(A) NFAC, Delhi 4. The CIT, Cochin. 5. The DR, ITAT, Cochin. 6. Guard File. Asst.Registrar/ITAT, Cochin