2020 (10) TMI 133

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....DS) for various quarters in Form No.24Q/26Q/27Q for FY 2012-13 to 2015-16 (AY 2013-14 to 2016-17). The statement was processed by the respondent. There was a delay in filing the above TDS statement and therefore the AO by intimation u/s. 200A of the Income-Tax Act, 1961 ["the Act"] levied late fee u/s. 234E of the Income-Tax Act, 1961 ["the Act"]. Under Sec.234E of the Act, if there is a delay in filing statement of TDS within the prescribed time then the person responsible for making payment and filing return of TDS is liable to pay by way of fee a sum of Rs. 200/- per day during which the failure continues. Section 234E of the Act inserted by the Finance Act, 2012 w.e.f. 1.7.2012. reads as follows:- "Fee for default in furnishing....

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....tatements of tax deducted at source. 200A. (1) Where a statement of tax deduction at source or a correction statement has been made by a person deducting any sum (hereafter referred to in this section as deductor) under section 200, such statement shall be processed in the following manner, namely:- (a) the sums deductible under this Chapter shall be computed after making the following adjustments, namely:- (i) any arithmetical error in the statement; or (ii) an incorrect claim, apparent from any information in the statement; (b) the interest, if any, shall be computed on the basis of the sums deductible as computed in the statement; (c) the fee, if any, shall be computed in accordance w....

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....ble by, or the refund due to, the deductor as required under the said sub-section." 4. Clause (c) to (f) of section 200A(1) was substituted by the Finance Act, 2015 w.e.f. 1.6.2015. The assessee contended that AO could levy fee u/s.234E of the Act while processing a return of TDS filed u/s.200(3) of the Act only by virtue of the provisions of Sec.200A(1)(c), (d) & (f) of the Act and those provisions came into force only from 1.6.2015 and therefore the authority issuing intimation u/s. 200A of the Act while processing return of TDS filed u/s.200(3) of the Act, could not levy fee u/s. 234E of the Act in respect of statement of TDS filed prior to 1.6.2015. The assessee, thus, challenged the validity of charging of fee u/s. 234E of the Act. ....

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....ing that the Assessee has not brought sufficient cause for delay. As far as appeals for AY 2015-16 & 2016-17 is concerned, the CIT(A) noticed that there was a delay in filing appeals for these years also and refused to condone the delay in filing the appeals. The CIT(A) did not stop with this he further went on to hold that the TDS statements were filed by the Assessee for these AYs after 1.6.2015 and after 1.6.2015 the law was amended and the defect pointed out by the Hon'ble Karnataka High Court in the case of Fateeraj Singhvi (supra) did not exist and the levy was valid. It has to be clarified here that though the statements of TDS were filed after 1.6.2015, they related to period prior to 1.6.2015 and the ratio laid down in the decision....