Smt. Sandhya Gugalia Vs DCIT (ITAT Jaipur)
The assessee filed two appeals before the ITAT Jaipur challenging the orders of the CIT(A)-3, Jaipur dated 27.11.2017 and 02.11.2017 for Assessment Year 2014-15, specifically disputing the levy of interest and late fees under Section 234E of the Income Tax Act. The dispute arose from the assessee’s purchase of a residential property located at C-127, Rishabh Path, Bhagirath Marg, Shyam Nagar, Jaipur, jointly owned by two individuals. The total agreed consideration for the property was Rs. 75,00,000, divided equally between the two co-owners. The assessee paid Rs. 37,50,000 to each transferor and deposited TDS of Rs. 37,500 in respect of each payment through challan-cum-Form 26QB and Form 27Q on 25.09.2013.
The assessee received intimations under Section 200A on 30.03.2015 levying interest and late fee under Section 234E, which were later rectified to Rs. 15,800 for each filing. The CIT(A) confirmed the levy, leading the assessee to pursue the matter before the Tribunal. During the hearing, the assessee argued that Section 194-IA was not applicable because the consideration paid to each seller was less than Rs. 50 lakh. It was submitted that TDS was deducted by mistake, and such an error could not justify the imposition of interest and late fee under Section 234E. The assessee also contended that late fee under Section 234E was not applicable prior to 01.06.2015, noting that the relevant amendment to Section 200A enabling computation of such fee came into effect only on that date. The intimation issued on 30.03.2015, therefore, could not include computation of late fee. In support, reliance was placed on the Karnataka High Court judgment in Fatheraj Singhvi, which held the amendment to be prospective.
