TaxTMI 
TaxTMI 
2026 (8) TMI 366
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....order therein passed shall apply mutatis mutandis with respect to the common issues for the other appeal. The assessee company has assailed the impugned order on the following grounds of appeal before us: 1. The Order of the Ld. CIT(A) u/s. 250 dated 31.05.2025 is erroneous both on facts and in law to the extent the order is prejudicial to the interests of the appellant 2. The Lid. CTT(A) ought to have appreciated that the Ld. TDS CPC erred in passing the orders u/s. 2004, 206CB and u/s. 154 of the Act by charging late fee u/s. 234E, calculating the short deduction u/s. 201(1) and Interest u/s. 311(1A) & 220(2) of the Act without appreciating the facts of the case. 3. The Lud. CIT(A) erred in stating that the submissions made by the appellant are not satisfactory and justifiable. 4. The Lid. CIT(A) ought to have appreciated that the interest levied is not warranted since the assessee has not been treated as an assessee in default u/s. 201 of the Act for any amount of non-deduction for the year. 5. The Ld. CIT(A) ought to have appreciated that due to covid-19. the Hon'ble Supreme Court in MA 665 of 2021 had extended the period of limi....
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....n of tax at source vide his order under section 154 of the Act, dated 19/04/2022 with respect to Form-26Q for the 3rd Quarter (Q3). 4. Aggrieved, the assessee company carried the matter in appeal before the CIT(A). Ostensibly, the assessee company submitted before the CIT(A) that it had filed its TDS returns for the FY 2020-21, as under: Quarter-1 Quarter-2 Quarter-3 Quarter-4 Form 24Q 18.01.2021 25.05.2021 09.09.2021 25.12.2021 Form 26Q 18.01.2021 25.05.2021 09.09.2021 25.10.2021 Form 27EQ 15.11.2021 15.11.2021 15.11.2021 15.11.2021 5. Elaborating further on its contention, it was submitted by the assessee company that the ITO (TDS), CPC had levied interest under section 201(1A), fee under section 234E and interest under section 220(2) of the Act for the reason that there was a delay in delivering/filing the statements within the time prescribed under section 200(3) of the Act. The assessee company has assailed the charging of the interest/fee primarily for two-fold reasons, viz., (i) that as its accountant who was attending to the work relating to TDS provisions was during the relevant period taken unwell....
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....wn situation in the country and thus, could not compile the data and deposit the amounts in the Government Treasury within the time prescribed. Accordingly, the assessee company had assailed the levy of fees for the late filing of TDS statements because the said delay had crept in for reasons beyond its control and not for any willful or deliberate act on its part. However, we find that the CIT(A) did not find favour with the aforesaid explanation of the assessee company. It was observed by him that the Government of India, keeping in view the challenges faced by taxpayers in meeting the statutory and regulatory challenges due to the outbreak of COVID-19, brought the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 ('the Ordinance') on 31st March, 2020, which, inter alia, extended various time limits. Accordingly, the CBDT issued a Notification, dated 24/06/2020, extending various time limits. Thereafter, the aforesaid Ordinance was replaced by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (No. 38 of 2020), dated 29/11/2020, wherein the due date for filing of TDS returns was extended but only for the quarter....
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....er the extant provisions. 11. Apropos the claim of the assessee company that it was not to be held as an assessee-in-default under section 201(1) of the Act, the CIT(A) observed that as per the "first proviso" to sub-section (1A) of section 201 in a case where the deductor fails to deduct the whole or any part of the tax in accordance with the provisions of Chapter XVII on the sum paid to the payee (deductee) or on the sum credited to the account of a payee, but is not to be deemed to be an assessee-in-default under sub-section (1) of section 201 then the interest under clause (i) of section 201(1A) shall be payable from the date on which such tax was deductible to the date of furnishing of return of income by such payee (deductee). However, the CIT(A) observed that a deductor for not to be considered as an assessee-in-default have to cumulatively fulfil three conditions as provided in the proviso, viz., (i) payee should have furnished return of income under section 139 of the Act; (ii) payee should take into account such sum (amount on which tax was supposed to be deducted) for computing income disclosed in such return of income; and (iii) payee should have paid the tax due on ....
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....excluded for the purposes of limitation as may be prescribed under any general or special laws in respect of all judicial or quasi-judicial proceedings; (ii) the balance period of limitation remaining as on 03/10/2021, if any, shall become available with effect from 01/03/2022; (iii) that in cases where the limitation would have expired during the period between 15.03.2020 till 28/02/2022, notwithstanding the actual balance period of limitation remaining, all persons shall have a limitation period of 90 days from 01/03/2022, and in case the actual balance period of limitation remaining w.e.f 01/03/2022 is greater than 90 days, that longer period shall apply; (iii) that the period from 15.03.2020 till 28/02/2022 shall be excluded in computing the period prescribed under section(s) 23(4) and 29A of the Arbitration and Conciliation Act, 1996, Section 12A of the Commercial Courts Act, 2015 and provisos (b) and (c) of Section 138 of the Negotiable Instruments Act, 1881 and any other laws, which prescribe period(s) of limitation for instituting proceedings, outer limits (within which the court or tribunal can condone delay) and termination of proceedings. In our view, the prescribed time....
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....ved that the statement of Deduction of Tax for the last quarter of the Financial Year 2020-21 may be furnished on or before 15th July, 2021. Considering the aforesaid CBDT Circular No. 12/2021, we herein direct the AO (TDS) not to treat the assessee company as being in default for the delay in the filing of the TDS statement for the last quarter for the subject year up to 15/07/2021. Apart from that, as observed by the CIT(A), we find that the assessee company had not submitted any CBDT notification as per which the "due dates" for filing of TDS returns for any other quarter for the impugned assessment year had been extended. 19. Apropos the reliance placed by the Ld. AR on the judgment of the Hon'ble High Court of Orissa in the case of D.N. Homes (P.) Ltd vs. Union of India (2023) 459 ITR 211 (Orissa), we are of the view that as the same is distinguishable on facts, thus, the same will not carry the case of the assessee company any further. In the said case the Hon'ble High Court was seized of the issue as to whether or not the assessee company was liable for being visited with prosecution qua the offences contemplated under section(s) 279B, 2(35) and section 278B of th....
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....horities below, who had rightly subjected the assessee company to interest under section 220(2) of the Act. 23. Coming to the Ld. AR's claim that the demands raised in its case did not tally with the orders under section 154 and orders under section 200A passed by the ITO (TDS, CPC) for various quarters, we find that the said aspect had been looked into by the CIT(A) at Para No. 6.3.1 of his order. The CIT(A) had filed a breakup of the disputed demand, which was comprised of, viz., (i) late fee under section 234E: Rs. 2,41,340/ -; (ii) interest under section 201(1A): Rs. 48,529/ -; and (iii) interest under section 220(2): Rs. 12,032/ -. Also, it was observed by him that the interest under section 201(1A) actually included, viz., (i) short payment of tax: Rs. 17,004/ -; (ii) short deduction/collection of tax: Rs. 13,660/ -; and (iii) interest under section 201(1A): Rs. 17,868/ -. The CIT(A) had observed that, except for the aforesaid discrepancy, the remaining amounts provided in the breakup by the assessee company tallied with the orders passed under section 200A/206CB and the orders passed under section 154 of the Act, respectively. As the Ld. AR has failed to point out any....