M. E. S High School, Solapur V. Income Tax Officer (TDS), Solapur

ITA 97/PUN/2023

AI Insights

The case involves two appeals by M.E.S. High School, Solapur, against the orders passed by the National Faceless Appeal Centre (NFAC), Delhi, for the assessment years 2013-14 and 2014-15. The appeals were related to the levy of fees under section 234E of the Income Tax Act for defaults in furnishing TDS statements for the 3rd quarter of the financial years 2012-13 and 2013-14. The primary legal issue was whether the CIT(A) was justified in upholding the levy of such fees, given that the relevant provision allowing for this levy was only enacted after the periods in question. The Tribunal heard the arguments, reviewed the applicable laws, and concluded that the fees were improperly levied, leading to the setting aside of the CIT(A)'s order.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 132911 (ITAT-PUNE)
• Duration Of Justice: 3 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-05-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 02-05-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 24-01-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: TDS; Set aside
• Section: 234E; 200A

Judgement Text

आयकर अपीलीय अधिकरण “ए” न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपऩल सं. / ITA Nos.96 & 97/PUN/2023 निर्धारण वर्ा / Assessment Years : 2013-14 & 2014-15 M.E.S. High School, Solapur 1117-A, Northkasba, Guruvaragl Kulkarni Marg, Solapur – 413007 PAN : PNEMI0996G .......अपऩलधर्थी / Appellant बिधम / V/s. The Income Tax Officer (TDS), Solapur ......प्रत्यर्थी / Respondent Assessee by : Shri Pramod S Shingte Revenue by : Shri Ramnath P. Murkunde सुनवाई की तारीख / Date of Hearing : 03-05-2023 घोषणा की तारीख / Date of Pronouncement : 03-05-2023 आदेश / ORDER PER S.S. VISWANETHRA RAVI, JM : These two appeals by the assessee arise against respective orders, both dated 29-09-2021 passed by the National Faceless Appeal Centre (NFAC), Delhi for assessment years 2013-14 and 2014-15. 2. There is delay of 761 days and 31 days in filing the appeals in ITA No.96/PUN/2023 and ITA No.97/PUN/2023, respectively, before the 2 ITA Nos.96 & 97/PUN/2023 Tribunal. The assessee filed affidavits explaining the reason. We are satisfied with the reasons so stated and condone the delay in filing the appeals and admit the appeals for disposal on merits. 3. Since, the issue raised in both the appeals is similar basing on the same identical facts. Therefore, we proceed to hear both the appeals together and to pass a consolidated order for the sake of convenience. 4. The only issue is to be decided is as to whether the CIT(A), NFAC, Delhi is justified in upholding the levy of fee u/s. 234E of the Act for default in furnishing TDS statement for Quarters 3 of A.Y. 2013-14 and 2014-15 in the facts and circumstances of the case. 5. We have heard the rival contentions and perused the material on record. We note that fee for default in furnishing the TDS statements have been imposed on the assessee u/s. 234E of the Act for the 3 rd quarter of the financial years 2012-13 (A.Y. 2013-14) and 2013-14 (A.Y. 2014-15). Section 200A deals with processing of TDS statements of tax deducted at source and Clause (c) of sub-section (1) of section 200A was inserted by the Finance Act 2015 w.e.f. 01-06-2015 providing for the levy of fee u/s.234E of the Act. In such circumstances, levy of such fee u/s.234E can be levied only after 01-06-2015 for the default committed by the assessee. We find that the period covered in the present subject appeals before us is Quarter 3 rd of financial years 2012-13 (A.Y. 2013-14) and 2013-14 (A.Y. 2014-15). Therefore, we hold that the amendment by insertion of Clause (c) to sub- 3 ITA Nos.96 & 97/PUN/2023 section (1) of section 200A of the Act is not applicable, therefore, the order of CIT(A), NFAC, Delhi is not justified and it is set aside. 6. In the result, both the appeals of assessee are allowed. Order pronounced in the open court on 3 rd May, 2023. Sd/- Sd/- (R.S. Syal) (S.S. Viswanethra Ravi) VICE PRESIDENT JUDICIAL MEMBER पुणे / Pune; ददनाांक / Dated : 3 rd May, 2023. GCVSR आदेश की प्रधिधलधप अग्रेधिि / Copy of the Order forwarded to : 1. अपीलाथी / The Appellant. 2. प्रत्यथी / The Respondent. 3. The CIT concerned. 4. दवभागीय प्रदतदनदध, आयकर अपीलीय अदधकरण, “ए” बेंच, पुणे / DR, ITAT, “A” Bench, Pune. 5. गार्ड फ़ाइल / Guard File. //सत्यादपत प्रदत// True Copy// आदेशानुसार / BY ORDER, वररष्ठ दनजी सदचव / Sr. Private Secretary आयकर अपीलीय अदधकरण ,पुणे / ITAT, Pune