Sections 200A and 234E – Adjustment in respect of levy of fees u/s. 234E is beyond the scope of permissible adjustments contemplated u/s. 200A. In the absence of enabling provision, such levy could not be effected in the course of intimation u/s. 200A.
Facts
The assessee company received intimations issued u/s. 200A wherein while processing TDS statements, fee u/s. 234E was levied for assessment years 2013-14 and 2014-15.
Aggrieved by the levy of fees u/s. 234E in an intimation issued u/s. 200A, the assessee preferred an appeal to the CIT(A) who upheld the levy.
Aggrieved, the assessee preferred an appeal to the Tribunal.
Held
The Tribunal observed that the issue in all the appeals was squarely covered in favor of the assessee by the decision of ITAT Amritsar Bench in the case of Sibia Healthcare Private Ltd. vs. DCIT 2015-TIOL-798-ITATAMRITSAR vide order dated 9th June, 2015, wherein the Division bench interalia observed that post 1st June, 2015, in the course of processing of TDS statement and issuance of intimation u/s. 200A in respect thereof, an adjustment could also be made in respect of “fee, if any, shall be computed in accordance with the provisions of section 234E.”
The Tribunal further held that as the law stood, prior to 1st June, 2015, there was no enabling provision for raising a demand in respect of levy of fees u/s 234E. It held that section 200A, at the relevant point of time, permitted computation of amount recoverable from, or payable to, the tax deductor after making adjustment on account of “arithmetical errors” and “incorrect claims apparent from any information in the statement, after making adjustment for `interest, if any, computed on the basis of sums deductible as computed in the statement. No other adjustments in the amount refundable to, or recoverable from, the tax deductor, were permissible in accordance with the law as it existed at that point of time.
The Tribunal deleted the levy of late filing fees u/s. 234E, in all the eleven appeals, by way of impugned intimations issued.
The appeals filed by the assessee were allowed.
