TaxTMI 
TaxTMI 
2020 (10) TMI 926
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....AR of the assessee that as per sub-section (3) of section 200, the assessee deductor has to prepare the statements and submit it to the prescribed Income Tax authorities after paying the tax deducted to the credit of the Central Government. He submitted that as per the provisions of sub-section 3 of section 200, the quarterly statement has to be filed after the payment of TDS to the credit of Central Government. It was also submitted that as per sub-rule (4A) of Rule 31A of Income Tax Rules, 1962, the required form has to be submitted within 30 days from the end of the month in which the deduction is made. Our attention was drawn to page 5 of the Paper Book and it was pointed out that Form No.26Q for quarter 1 for Financial Year 2015-16 was filed on 02.11.2015 and the date of payment of TDS is 21.10.2015 and therefore, the delay is of only 12 days and hence, even if it is held that fees under section 234E is payable, such fees should be for 12 days of delay @ Rs. 200/- per day and the late fees should be only Rs. 2,400/- and not Rs. 22,000/- as levied by the AO. 3. As against this, learned DR of the Revenue supported the order of AO and CIT(A). He also submitted that in the pres....
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....d authority as per prescribed Rule- 31A(4A). The said Rule provides for filing of 'challan cum statement' within seven days from the date of deduction. Since, challan cum statement has been filed by the assessee on 05.04.2014 after paying the tax as required u/s 200(3), therefore, there was no default so as to warrant levy fee u/s 234E. In other words Rule-31A( 4A) merely refers to challan cum statement that means that filing of the statement after the tax stands paid. He submitted that had the filing of the statement was envisaged with reference to the date of deduction, then how could the word 'challan' appear in the said sub Rule. 'Challan' word indicates that tax must stand paid and in fact form 26QB is generated simultaneously with the tax paid challan. He further submitted that the tax has been paid and statement has been filed immediately, thus, there is no loss to the revenue; and even if it is taken that there was delay in filing the statement, then it was at best a technical or venial breach, which should be ignored as held in the decisions reported at Mahavir AGENCY vs. Income Tax OFFICER 58 ITD 386 (Ahmadabad), Income Tax Officer vs. Alhusain Con....
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....ctronically under digital signature in accordance with the procedures, formats and standards specified under sub-rule (5); (c) furnishing the statement electronically along with the verification of the statement in Form 27A or verified through an electronic process in accordance with the procedures, formats and standards specified under sub-rule (5).] (ii) Where,- (a) the deductor is an office of the Government; or (b) the deductor is the principal officer of a company; or (c) the deductor is a person who is required to get his accounts audited under section 44AB in the immediately preceding financial year; or (d) the number of deductee's records in a statement for any quarter of the financial year are twenty or more, the deductor shall furnish the statement in the manner specified in [item (b) or item (c) of clause (i)]. (iii) Where deductor is a person other than the person referred to in clause (ii), the statements referred to in sub-rule (1) may, at his option, be delivered or cause to be delivered in the manner specified in [item (b) or item (c) of clause (i)]. [(3A) A claim for refund, for sum paid to....
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.... in view of clause (a) or clause (b) of sub-section (1D) of section 197A. (xiii) furnish particulars of amount paid or credited on which tax was not deducted in view of the exemption provided to persons referred to in Board Circular No. 3 of 2002 dated 28th June 2002 or Board Circular No. 11 of 2002 dated 22nd November 2002 or Board Circular No. 18 of 2017 dated 29th May 2017.] [(4A) Notwithstanding anything contained in sub-rule (1) or sub-rule (2) or sub-rule (3) or sub-rule (4), every person responsible for deduction of tax under section 194-IA shall furnish to the Director General of Income-tax (System) or the person authorised by the Director General of Income-tax (System) a challan-cum-statement in Form No. 26QB electronically in accordance with the procedures, formats and standards specified under subrule (5) within [thirty days] from the end of the month in which the deduction is made.]" 6. We also reproduce sub-section (3) of section 200 of Income Tax Act, 1961. This reads as under: "(3) Any person deducting any sum on or after the 1st day of April, 2005 in accordance with the foregoing provisions of this Chapter or, as the case may be, any pe....