2018 (5) TMI 1486

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....ssee submitted that it was under the impression that there is no legal remedy of appeal u/s 246A against the impugned order passed u/s 200A. It was also submitted that assessee was prevented from filing the appeal within the time as there was no provision in section 246A of the Act. However, it was submitted that the assessee came to know from a number of similar cases that a provision was added in section 246A with effect from 01/06/2015 and the appeal is maintainable from then onwards and against the order passed u/s 200A. 4. After considering the above submissions, ld. CIT(A) brought on record that order u/s 200A(1) was always appealable order as per the provisions of section 246(1)(a) and observed that relevant portion of this clause w....

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.... that such an order was not appealable at that point of time as submitted by the assessee are not sustainable as the orders passed u/s 200A were appealable orders as per the provisions of section 246A. However, the assessee has now brought to our notice the decision of Hon'ble Karnataka High Court in the case of Sri Fatheraj Singhvi and others in W.P. Nos. 2663-2674/2015(T-IT) & others, dated 26/08/2016 in which, the Hon'ble Court considered the question as to whether there was mechanism provided u/s 200A prior to 01/06/2015 to demand the fee u/s 234E of the Act and after considering the various aspects of the issue has held that the substitution of clauses (c) to (f) of Sub-section (1) of section 200A can be read as having prospective effe....

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....the fee was provided under Section 234E, the Parliament also provided for its utility for giving privilege under Section 271H(3) that too by expressly put bar for penalty under Section 272A by insertion of proviso to Section 272A(2), it can be said that a particular set up for imposition and the payment of fee under Section 234E was provided but, it did not provide for making of demand of such fee under Section 200A payable under Section 234E. Hence, considering the aforesaid peculiar facts and circumstances, we are unable to accept the contention of the learned counsel for respondent-Revenue that insertion of clause (c) to (f) under Section 200A(1) should be treated as retroactive in character and not prospective." 6.1 Considering the ab....