Tribunal Rules: TDS Intimations are Appealable, Section 234E Fees Not Chargeable Before June 2015 in Landmark Decision.

The Tribunal determined that the intimation issued by the Assessing Officer after processing TDS returns is appealable under section 246A(1)(a) of the Income-tax Act, reversing the CIT(A)'s decision. Additionally, the Tribunal held that fees under section 234E could not be charged for periods before 01.06.2015, as the amendment to section 200A(1) applies prospectively. Consequently, the Tribunal allowed the assessee's appeals, except for a few withdrawn cases.

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Issues Involved:
1. Maintainability of appeals against orders passed under section 200A(3) of the Income-tax Act, 1961.
2. Charging of fees under section 234E of the Act prior to the amendment to section 200A(1)(c) of the Act w.e.f. 01.06.2015.

Detailed Analysis:

1. Maintainability of Appeals:

The core issue is whether appeals filed by the assessee against the orders passed under section 200A of the Income-tax Act, 1961, are maintainable. The CIT(A) held that such orders were not appealable under section 246A(1) of the Act. However, the Tribunal pointed out that the intimation generated after processing TDS statements is appealable under section 246A of the Act. The Memorandum explaining the Finance Bill, 2015, recognized that an intimation generated after processing TDS statements is subject to rectification under section 154 of the Act and is appealable under section 246A of the Act. Therefore, the Tribunal concluded that the intimation issued by the Assessing Officer after processing the TDS returns is indeed appealable. The Tribunal reversed the findings of the CIT(A) and held that such intimation is an appealable order under section 246A(1)(a) of the Act.

2. Charging of Fees Under Section 234E:

The second issue pertains to whether fees under section 234E of the Act could be charged prior to the amendment to section 200A(1)(c) of the Act by the Finance Act, 2015, w.e.f. 01.06.2015. The Tribunal noted that the power to charge fees under section 234E of the Act while processing TDS returns was vested in the prescribed authority only after the amendment. Before this amendment, the Assessing Officer did not have the authority to charge fees under section 234E while issuing intimation under section 200A of the Act. The Tribunal emphasized that any provision of the Act made applicable from a specific date must be applied from that date and not retrospectively. The Tribunal held that the amendment to section 200A(1) of the Act is procedural in nature and applies prospectively from 01.06.2015. Consequently, the Assessing Officer was not empowered to charge fees under section 234E of the Act for TDS statements filed before 01.06.2015.

The Tribunal relied on various decisions, including those of the Amritsar Bench in Sibia Healthcare (P) Ltd. v. DCIT and the recent judgment of the Karnataka High Court in Sri Fatheraj Singhvi & Ors v. Union of India & Ors, which quashed the intimation issued under section 200A of the Act for levying fees under section 234E of the Act for periods prior to 01.06.2015. The Tribunal also referred to the decision of the Hon'ble Supreme Court in CIT v. Vatika Township Pvt. Ltd., which held that legislation is presumed not to have retrospective operation unless a contrary intention appears.

In conclusion, the Tribunal allowed the appeals filed by the assessee, holding that the Assessing Officer was not empowered to charge fees under section 234E of the Act while processing TDS returns for periods prior to 01.06.2015, and that such intimation issued under section 200A is appealable.

Order:

The Tribunal allowed the appeals filed by different assessee for different quarters relating to different years, except for a few appeals which were dismissed as withdrawn.

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