TaxTMI 
TaxTMI 
2022 (7) TMI 1423
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.... of the Act. 2.2 The Ld.DR was of the view that, u/s. 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. 2.3 Aggrieved by the order of Ld.AO, the assessee preferred appeal before Ld.CIT(A). The assessee contended before Ld.CIT(A) that the provisions of section 234E of the Act was inserted by the Finance Act, 2012 w.e.f. 1.7.2012. Section 200A of the Act is a provision which deals with how a return of TDS filed u/s. 200(3) of the Act has to be processed and it reads as follows:- "Processing of statements 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 ....
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....f TDS filed prior to 1.6.2015. The Assessee, thus, challenged the validity of charging of fee u/s. 234E of the Act. The Assessee relied on the decision of the Hon'ble High Court of Karnataka in the case of Fatehraj Singhvi v. UOI [2016] 73 taxmann.com 252 wherein the Hon'ble Karnataka High Court held that amendment made u/s. 200A providing that fee u/s. 234E of the Act could be computed at the time of processing of return and issue of intimation has come into effect only from 1.6.2015 and had only prospective effect and therefore, no computation of fee u/s. 234E of the Act for delayed filing of return of TDS while processing a return of TDS u/s. 234E of the Act could have been made for tax deducted at source for the assessment years prior to 1.6.2015. 3. The Ld.CIT(A) after considering the above submissions observed as under: "6.2 I have considered the grounds raised, the written submission filed and the cases relied in support of the Appellant's case. This issue has been examined in detail by Hon'ble Gujrat High Court in the case of Rajesh Kourani v. Union of India[2017] 83 taxmann.com 137/249 Taxman 402 (Guj.). Hon'ble Gujarat High Court have clearly ruled....
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....ovision, as noted, it was always open for the Revenue to charge the fee in terms of section 234E of the Act. By amendment, this adjustment was brought within the fold of section 200A of the Act. This would have one direct effect. An order passed under section 200A of the Act is rectifiable under section 154 of the Act and is also appealable under section 246A. In absence of the power of authority to make such adjustment under section 200A of the Act, any calculation of the fee would not partake the character of the intimation under said provision and it could be argued that such an order would not be open to any rectification or appeal. Upon introduction of the recasted clause (c), this situation also would be obviated. Even prior to 01.06.2015, it was always open for the Revenue to calculate fee in terms of section 234E of the Act. 6.3 Hon'ble Gujarat High Court, in the above mentioned case, have also stated that they do not concur with the decision given by Hon'ble Karnataka High Court in the case of Sri Fateheraj Singhvi and Ors. Vs. Union of India and Ors observing as under: "The Karnataka High Court in case of Fatheraj Singhvi (supra) held that sectio....
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....nt made u/s. 200A providing that fee u/s. 234E of the Act could be computed at the time of processing of return and issue of intimation has come into effect only from 1.6.2015 and had only prospective effect and therefore, no computation of fee u/s. 234E of the Act for delayed filing of return of TDS while processing a return of TDS u/s. 234E of the Act could have been made for tax deducted at source for the assessment years prior to 1.6.2015. 6. Coordinate Bench of this Tribunal in case of Mindlogicx Infratec Ltd. vs. ACIT in ITA Nos. 462 to 483/Bang/2022 by order dated 19/07/2022 for A.Ys. 2013-14 to 2015-16 observed and held as under: "13. It is not in dispute that if the ratio laid down by the Hon'ble Karnataka High Court in the case of Fateeraj Singhvi (supra) if applied then the levy of interest u/s. 234-E of the Act would be illegal for returns of TDS in respect of the period prior to 1.6.2015. The present appeals of the assessee relate to TDS returns filed prior to 1.6.2015. The decision of the Hon'ble Karnataka High Court in the case of Fateeraj Singhvi (supra)was rendered on 26.8.2016. As rightly contended by the learned Counsel for the assessee, there is no a....