Case Law Details
Scotts Garments Ltd. Vs ACIT (ITAT Bangalore)
The first aspect is as to, whether the TDS return filed under section 200(3) of the Act can be declared as non est. We have already extracted the provisions of section 200(3) of the Act.
There is no such power conferred, either under those provisions or under any other provisions of the Act, to declare the return of TDS filed under section 200(3) as non est. As rightly contended by the learned counsel for the Assessee, the Act contains provision for declaring a return of income filed as invalid under sectionection 139(9) of the Act. There is no such for declaring a return of TDS as invalid.
This is a clear indication in the Act that return of TDS cannot be declared as non est. A return of TDS only evidences payment of taxes which are withheld by a payee who, under the provisions of the Act, is bound to deduct tax at source. Declaring a return of TDS as non est, cannot have the effect of treating the payee as an Assessee in default and expose him to other consequences under the Act as an Assessee in default. Section 234E(3) lays down that the fee to be paid under section 234E of the Act shall be paid before the return of TDS is filed under section 200(3) of the Act. This provision, in our view, does not confer power on the Commissioner (Appeals) to declare the return of TDS as non est in law in a case where the return of TDS is filed without payment of fee under section 234E of the Act. Besides the above, in the present case, the levy of fee under section 234E of the Act has already been deleted by the Commissioner (Appeals) and therefore these provisions cannot be of any help to the conclusions of the Commissioner (Appeals) that the return filed without payment of fee under section 234E of the Act is invalid and can be declared as non est in law.
FULL TEXT OF THE ITAT JUDGEMENT
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