TaxTMI 
TaxTMI 
TaxTMI 
2020 (7) TMI 34
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.... to the findings of appeal whereas we have Submitted before the Ld. CIT-(Appeals)-III, that during the considering quarter, the report of TDS was submitted by us for salary of the government employees, all the taxes was paid timely but the TQS return was filed late due to some reasonable, unavoidable and sufficient causes for failure. a. during the quarter first there was limited staff b. during the said quarter all the staff was busy in the programme of admission since 19th June, 2018 to 31st July, 2018 and implementation of such programme was necessary in the interest of public. c. during the quarter first, the implied charge of such TDS work in the hand of the PTI (sport teacher) who was engaged in school tournament of sports activities from July to September. d. during the quarter first , In the end of the July a peon promoted Office staff was joined as LDC, and he was not aware with proper rules and the promoted LDC was believed & satisfied with filling of the first quarter by Sports teacher and on the another side sports teacher was believed that charge is not in my hand and return is submitting by the new LDC without interruption, after long time the return was filed....
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....3. That the Ld. Commissioner of Income Tax (Appeals) has failed to appreciate that the basic concept behind TDS is, to deposit the Tax on the income of deductee as he earns the income. Therefore deductor/recipient has deposited the tax timely. No such offence has been committed by the assessee that he deducted the TDS and not deposited the Tax and utilizing the money for his purpose. Therefore No Late fees can be imposed on the assessee. 4. That the Ld. Commissioner Of Income Tax (Appeals) has failed to appreciate that as the Appellant was not in such condition to pay penalty as late fee because that we have Rajasthan State Government Department in the name and style of GOVERNMENT SECONDARY SCHOOL, TOOMLIKABAS, Chaksu, Jaipur to reform, improve and development of the education among the students of villages and farmers ,the fund release from the state government. We further submit that the allocated fund is being utilized in said projects for the public. No other balances or assets in the name of the Appellant except these specified reserve fund. That as per the above situation the payment of such late fee amount would cause genuine hardship to the Appellant. There is no defaul....
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....then how the recovery can be made for late fee. 9. That the Appellant prays that the penalty of Rs. 63,000/- made in respect of section 234E be deleted. 10. That the appellant prays for leave to add, alter, and amend the aforesaid grounds of appeal at or before the time of hearing of appeal." 2. The hearing of the appeal was concluded through video conference in view of the prevailing situation of Covid-19 Pandemic. The assessee is the Principal of Secondary School and responsible for deducting tax at source, depositing the same to the government account and submitting quarterly TDS statement as required U/s 200(3) read with the proviso of the said Section. There is delay of 315 days in filing the quarterly TDS statement of Quarter No. 1 of F.Y. 2017-18 and consequently the A.O. while issuing the intimation has made an adjustment of late filing fee U/s 234E of the Act of Rs. 63,000/-. 3. The assessee challenged the said levy of late filing fee before the ld. CIT(A) and contended that due to some transfer postings of the Lower Division Clerk (LDC) as well as the teachers, looking after the matter, there was a delay in submitting the quarterly TDS statement of Quarter No. 1 of ....
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....lty levied under Chapter-XXI of the Act which can be deleted if the assessee explained a reasonable and bonafide cause. Thus, a levy of late fee for default in furnishing the statements is required U/s 200(3) as well as Section 206C(3) of the Act. Therefore, the A.O. is having no discretion to levy or not to levy the penalty but it is mandatory once there is a default in furnishing the TDS statements on the part of the assessee. The ld DR has further contended that that Section 154 of the Act envisages amendment in intimation issued U/s 200A(1) of the Act and therefore, there is no error or illegality in the order of the A.O. passed U/s 154 of the Act and levying the fee for default in furnishing the TDS statement. Thus, the ld DR has contended that the reasons explained by the assessee for default are not relevant for the purpose of late fee levied U/s 234E of the Act. She has relied upon the orders of the authorities below. 6. We have considered the rival submissions as well as relevant material on record. There is no dispute that there was delay of 315 days in submitting the quarterly TDS statement for the Quarter No. 1 of F.Y. 2017-18 as the assessee filed the said statement ....
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....the sums deductible as computed in the statement; 13[(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 determined after adjustment of the amount computed under clause (b) and clause (c) against any amount paid under section 200 or section 201 or section 234E and any amount paid otherwise by way of tax or interest or fee; (e) an intimation shall be prepared or generated and sent to the deductor specifying the sum determined to be payable by, or the amount of refund due to, him under clause (d); and (f) the amount of refund due to the deductor in pursuance of the determination under clause (d) shall be granted to the deductor:] Provided that no intimation under this sub-section shall be sent after the expiry of one year from the end of the financial year in which the statement is filed. Explanation.-For the purposes of this sub-section, "an incorrect claim apparent from any information in the statement" shall mean a claim, on the basis of an entry, in the statement- (i) of an item, which is inconsistent with another entry of the same or some other item i....