2018 (7) TMI 819

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e constitutional validity of Section 234E is being considered by the various High Courts. The fee levied under Section 234E is akin to a penalty. So much so, the provisions under Section 234E to the extent it provides for automatic levy of late fee without taking into account the circumstances that led to the delayed filing of the TDS statements is arbitrary and illegal. D: The delayed filing in the present case is not intentional. The appellant as stated earlier is the Headmistress of a High School. Salary is being disbursed from the treasury on the basis of the bill submitted by the appellant herein. Tax is being deducted by the treasury while making such payments. But there was mismatch in the TDS statements submitted by the treasury on account of which the filing of TDS statements by the appellant got delayed. But this aspect is not taken into account by the authorities below while passing the impugned order. It ought to have been noticed that the delay in filing TDS statements was on account of reasons beyond the control of the appellant. So much so, the delay ought not to have been penalized by imposition of late filing fee under Section 234E. E: Without pre....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....o 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. 22. It is hardly required to be stated that, as per the well established principles of interpretation of statute, unless it is expressly provided or impliedly demonstrated, any provision of statute is to be read as having prospective effect and not retrospective effect. Under the circumstances, we find that substitution made by clause (c) to (f) of sub-section (1) of Section 200A can be read as having prospective effect and not having retroactive character or effect. Resultantly, the demand under Section 200A for computation and intimation for the payment of fee under Section 234E could not be made in purported exercise of power under Section 200A by the respondent for the period of the respective assessment year prior to 01- 06-2015. However, we make it clear that, if any deductor has already paid the fee after intimation received under Section 200A, the aforesaid view will not permit the deductor to reopen the said question unless he has made payment under protest. 23....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e CIT(A) observed that in view of the provisions of section 200A and 234E of the I.T. Act, the assessee is liable for levy of late fee u/s. 234E for delay in furnishing the TDS statement to the Department. Accordingly, he held that the levy of late fee u/s. 234E was justified. 5. Against this, the assessee is in appeal before us. 6. We have heard the rival submissions and perused the record. We find that a similar issue came up before this Tribunal in the case of Little Servants of Divine Providence Charitable Trust vs. ITO(TDS) reported in 2016 (9) TMI 960 - ITAT, Cochin (ITA No.258/Coch/2016 dated 09/09/2016) wherein it was held as under: "8 We have heard the rival submissions and perused the material on record. The Finance Act, 2015 has amended section 200A of the Act with effect from 1.6.2015. The amendment is as follows: In section 200A(1) of the Act, for clause (c) to (e), the following clauses were substituted with effect from the 1st day of June 2015, namely:- (c) the fee, if any, shall be computed in accordance with the provisions of section 234E. (d) the sum payable by, or the amount of refund due to, the deductor shall be determi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ed within one year from the end of the financial year within which the related TDS statement is filed, and as the related TDS statement was filed on 19th February 2014, such a levy could only have been made at best within 31st March 2015. That time has already elapsed and the defect is thus not curable even at this stage. In view of these discussions, as also bearing in mind entirety of the case, the impugned levy of fees under section 234E is unsustainable in law. We, therefore, uphold the grievance of the assessee and delete the impugned levy of fee under section 234E of the Act......" 8.3. The Ahmedabad Bench of the Tribunal, in the case of Lions Club of North Surat Charitable Trust Vs. Income Tax Officer, (TDS)-II 2015 (9) TMI 1231 and the Chennai Bench of the Tribunal in the case of Smt. G. Indhrani Vs. Deputy Commissioner of Income Tax, Centralized Processing Cell(TDS) (2015) 60 Taxmann.com 312 have followed the views taken by the Amritsar Bench of the Tribunal and decided the issue in favour of the assessee. 8.4 In view of the aforesaid reasoning and respectfully following the orders of the coordinate benches of the Tribunal, we delete the levy of late fili....