AI Drafter 
TaxTMI 
TaxTMI 
2021 (9) TMI 1100
X X X X Extracts X X X X
X X X X Extracts X X X X
....ee has raised following grounds of appeal:- 1. That no opportunity of being heard or any show cause notice whatsoever has been afforded to the assessee before giving the notice of penalty under section 234E which is against the principle of natural justice and inconsistent with the various pronouncements given by the Courts. 2. That the quantum of late fees enforced on the appellant is confiscatory in nature of a part of their income as the assessee have been penalized in disproportionate level despite of payment of tax on due dates. 3. That no inconvenience has been caused to the tax deducted since the amount was show in his 26AS at the time of return and also the department got time credit of the tax. Thus penal....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ovide that statement of tax deduction at source or correction statement made u/s. 200 shall be processed and sum deductible under Chapter XVII shall be computed after also taking into account the fee, if any, payable in accordance with the provisions of section 234E. The sum payable or refundable shall be determined after adjusting the aforesaid computed sum 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. " * Referring to Finance Act, 2015, attention is drawn to your good self that with effect from 01.06.2015, the Parliament by way of amendment to Section 200A of the Act empowered the Assessing Officer to levy fee under Section 234E of the Act ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t in the statute w.e.f. 01.06.2015 enabling the Assessing Officer to make such adjustment. The period for which TDS was deducted and return filed for the period prior to the amendment u/s 200A of the Act and hence the late filing fee u/s 234E of the Act while issuing intimation u/s 200A of the Act is unjustified and unwarranted for want of jurisdiction of the Assessing Officer. In support of his contention, he has relied upon by the decision of the Hon'ble Karnataka High Court in the case of Fatehraj Singhvi & Ors. vs UOI reported in 289 CTR 602(Karn.). He has further submitted that the Delhi Benches of this Tribunal in assessee's own case in ITA No.2308 to 2039/Del/2017 for the AY 2015-16 vide order dated 18.04.2017 has cancelled the levy ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rn for the 4th quarter of Financial year 2014-15 relevant to the AY 2014-15 in Form No.26Q on 27.06.2015 belatedly of 43 days after due date. The said quarter return was processed u/s 200A of the Act on 30.06.2015 whereby an adjustment was made on account of late filing fee u/s 234E of the Act of Rs. 8600/-. So far as the levy of late filing fee u/s 234E of the Act is concerned, this is mandatory and consequential, however, prior to the amendment in section 200A w.e.f. 01.06.2015, the Assessing Officer was not having the power to make such adjustment on account of late filing fee. In the case, in hand, there is no dispute that the quarterly TDS was filed on 27.06.2015 and was processed on 30.06.2015 and both these events happened after the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... will have prospective effect accordingly. It is further observed that the question of constitutional validity of Section 234E shall remain open to be considered by the Division Bench and shall not get concluded by the order of the learned Single Judge." 7. Thus, the Hon'ble High Court has held amendment u/s 200A of the Act is prospective in nature and therefore no computation of fee for demand or intimation u/s 200A could be made for the TDS deducted for the respective Assessment Years prior to 01.06.2015. It is pertinent to note that the delay in filing the statement upto 01.06.2015 would not attract the provisions of section 234E of the Act so far as the adjustment to be made while processing the TDS return u/s 200A of the Act, as the....