Case Law Details
M.E.S. High School Vs ITO (TDS) (ITAT Pune)
ITAT Pune has ruled that the fee for default in TDS statement under Section 234E of the Income Tax Act is applicable only after 1st June 2015. In this case assessee had defaulted in furnishing TDS statements for specific quarters. ITAT observed that the amendment to Section 200A, which introduced Clause (c) allowing the levy of the fee, came into effect from June 2015. As a result, the appeals of the assessee were allowed by observing that fee u/s.234E can be levied only after 01-06-2015 for the Default in Furnishing TDS Statement committed by the assessee
FULL TEXT OF THE ORDER OF ITAT PUNE
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 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 3rdquarter 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 3rd 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- 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 3rd May, 2023.
