Raj Veer Singh Vs ACIT (ITAT Delhi)
We are of the considered view that no doubt provisions contained u/s 234E under which late fee has been levied for defaults of period in filing the TDS/TCS statements/returns but coordinate Benches of the Tribunal have followed one approach, though there are conflicting decisions of different High Courts in the absence of any decision of Hon’ble jurisdictional High Court.
Because Hon’ble Karnataka High Court in case of Fatehraj Singhvi & Ors. vs. UOI & Ors. 2016 (9) TMI 964 (Karnataka High Court) is in favour of the assessee holding that the amendments brought in statute w.e.f. 01.06.2015 are prospective in nature and as such, notices issued u/s 200A of the Act for computation and intimation of payment of late filing fee u/s 234E of the Act relating to the period of tax deduction prior to 01.06.2015 was not maintainable.
At the same time, Hon’ble Gujarat High Court in case of Rajesh Kourani vs. UOI (2017) 83 taxmann.com 137 (Gujarat) has decided the issue against the assessee. So, in these circumstances, we are of the considered view that following the decision rendered by Hon’ble Supreme Court in the case of Vegetable products Limited 88 ITR 192 (SC) that when there are conflicting decisions, the view taken in favour of the assessee should be followed, the impugned order passed by the ld. CIT (A) confirming the late fee levied by the AO u/s 200A read with section 234E as the defaults are prior to 01.06.2015, is not sustainable in the eyes of law, hence fee levied u/s 234E is ordered to be deleted. Consequently, the appeal filed by the assessee is allowed.
FULL TEXT OF THE ORDER OF ITAT DELHI
Appellant, Shri Raj Veer Singh (hereinafter referred to as ‘the assessee’) by filing the present appeal sought to set aside the impugned order dated 10.03.2017 passed by the Commissioner of Income-tax (Appeals)-41, New Delhi confirming the order passed by the Assessing Officer under section 200A of the Income-tax Act, 1961 (for short ‘the Act’) qua the assessment year 2015-16 on the grounds inter alia that :-
“1(i) That on facts and circumstances of the case, the Ld. CIT(A) was not justified in confirming the levy of aggregate late fee of Rs.1,29,860/- pertaining to 4 quarters relevant to FY 2014-15 u/s 234E, of the Income Tax Act, 1961 without appreciating the law and facts of the case.
(ii) That the provision for levy late fee u/s 200A(1)(c) read with section 234E was introduced vide Finance Act 2015 w.e.f. 01/06/2015 and as such the order U/S 200A is illegal and without jurisdiction.
(iii) That in absence of provision in the statute, the impugned order is invalid and bad in law.
2(i) That the TDS having been deposited along with interest and there being no case of deliberate non-compliance to the provisions of the Act, the levy of late fee is highly excessive and unreasonable.
(ii) That the delay in filing of TDS statement was of technical nature and on bonafide grounds.
3. That the orders of the lower authorities are bad in law.”
2. Briefly stated the facts necessary for adjudication of the controversy at hand are : Assessee is an individual tax payee carrying on business of civil contractors under the name and style as Nutech Builders, filed its quarterly statement of Deduction of Tax at Source (TDS) for the quarter ending 31.03.2015 in Form 26Q on 30.10.2015 for tax deducted to the tune of Rs.49,102/- u/s 200(3) of the Act along with interest of Rs.5,951/-. Assessing Officer (AO) raised a demand of Rs.33,600/- by way of intimation u/s 200A of the Act dated 03.11.2015 on account of late fee u/s 234E for delay in filing the TDS statement.
3. Assessee carried the matter before the ld. CIT (A) by way of filing appeal who has confirmed the demand by dismissing the appeal. Feeling aggrieved, the assessee has come up before the Tribunal by way of filing the present appeal.
4. We have heard the ld. Authorized Representatives of the parties to the appeal, gone through the documents relied upon and orders passed by the revenue authorities below in the light of the facts and circumstances of the case.
5. Undisputedly, the assessee deposited TDS for fourth quarter for FY 2014-15 along with fee levied u/s 234E of the Act as under:-
