Karnataka High Court
M/S. Protech Engineers Bangalore Pvt ... vs The Deputy Commissioner Of Income Tax on 5 July, 2023
Author: S Sunil Dutt Yadav
Bench: S Sunil Dutt Yadav
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NC: 2023:KHC:23108
WP No. 12296 of 2023
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 5TH DAY OF JULY, 2023
BEFORE
THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV
WRIT PETITION NO. 12296 OF 2023 (T-IT)
BETWEEN:
M/S. PROTECH ENGINEERS
BANGALORE PVT. LTD.,
COMPANY INCORPORATED
UNDER COMPANIES ACT, 1956
MR. PURNA BABU CHALLAGUNDLA,
AGED ABOUT 45 YEARS,
SON OF MR. SUBRAMANYAM
NAIDU CHALLAGUNDLA,
NO.1032, KRISHNA KRUPA,
2ND FLOOR, 13TH CROSS,
BENGALURU - 560 070.
...PETITIONER
Digitally signed
by SUCHITRA (BY SRI. ANNAMALAI S., ADVOCATE)
MJ
Location: HIGH
COURT OF
KARNATAKA AND:
1. THE DEPUTY COMMISSIONER
OF INCOME TAX,
CENTRALIZED PROCESSING CELL - TDS,
TDS RECONCILIATION ANALYSIS AND
CORRECTION ENABLING SYSTEM TDS CPC,
AAYKAR BHAWAN, SECTOR - 3,
VAISHALI, GHAZIABAD,
UTTAR PRADESH - 201 010.
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NC: 2023:KHC:23108
WP No. 12296 of 2023
2. COMMISSIONER OF INCOME TAX (TDS),
HMT BHAWAN, NO.59,
BELLARY ROAD, GANGANAGAR,
BENGALURU - 560 032.
3. INCOME TAX OFFICER, TDS
TDS WARD 2(3), BANGALORE,
HMT BHAWAN, NO.59,
BELLARY ROAD, GANGANAGAR,
BENGALURU - 560 032.
...RESPONDENTS
(BY SRI.ARAVIND K.V., ADVOCATE FOR
SRI.DILIP M., ADVOCATE)
THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF
THE CONSTITUTION OF INDIA PRAYING TO QUASHING THE
VARIOUS INTIMATIONS ISSUED BY THE R-1 IN SO FAR AS
COMPUTATION DETERMINATION AND DEMAND OF LATE FEE
UNDER SECITON 234E OF THE INCOME TAX ACT 1961 AS
FOLLOWS AND ETC.
THIS PETITION, COMING ON FOR PRELIMINARY
HEARING, THIS DAY, THE COURT MADE THE FOLLOWING:
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NC: 2023:KHC:23108
WP No. 12296 of 2023
ORDER
The petitioner has challenged the Intimation under Section 154 of the Income Tax Act, 1961 (for short 'the Act') at Annexures-A1, A2, A3, A4 with respect to TDS/TCS Form Numbers 24Q and 26Q for the financial year 2012-13; Intimation under Section 200A/206CB of the Act at Annexure-A5 with respect to TDS/TCS Form Number 26Q for the financial year 2012-13; Intimation under Section 200A/206CB of the Act at Annexures-A6, A7, A8, A9, A11 with respect to TDS/TCS Form Numbers 24Q and 26Q for the financial year 2013-14; Intimation under Section 154 of the Act at Annexure-A10 with respect to TDS/TCS Form Number 24Q for the financial year 2013-14; Intimation under Section 200A/206CB of the Act at Annexures-A12, A13 and A14 with respect to TDS/TCS Form Numbers 24Q and 26Q for the financial year 2014-15.
2. The case that is made out by learned counsel for the petitioner is that the action of the revenue in taking recourse to Section 200A of the Act for the purpose of demand of late fee under Section 234E of the Act is impermissible as the demand relates to the period prior to 01.06.2015. Demand -4- NC: 2023:KHC:23108 WP No. 12296 of 2023 has been issued prior to 01.06.2015 i.e., prior to coming into force of Section 200A(1)(c) of the Act and accordingly, the default under Section 234E of the Act cannot be visited with the fee calculated under Section 200A of the Act.
3. Reliance is placed on the order of the Division Bench of this Court in the case of Fatheraj Singhvi v. Union of India reported in [2016] 73 taxmann.com 252 (Karnataka). Learned counsel for the petitioner has filed a memo and has produced summary of late fees under Section 234E of the Act along with dates of processing of TDS Statements under Section 200A of the Act.
4. A perusal of the demand raised would indicate that except four of the entries, all demands raised are prior to 01.06.2015. In the light of the law laid down by the Division Bench, all demands raised regarding Late Fees under Section 234E of the Act, prior to 01.06.2015 are liable to be set aside. However, insofar as four of the demands made, same are liable to be set aside in the light of the proviso to Section 200A of the Act, which provides that no intimation shall be sent after expiry of one year for the end of the Financial Year, in which the -5- NC: 2023:KHC:23108 WP No. 12296 of 2023 statement is filed. Accordingly, as regards intimation made at Sl.Nos.A6, A8, A12 and A13 are liable to be set aside in the light of the proviso to Section 200A of the Act, while remaining demands all being made before 01.06.2015 are liable to be set aside.
In view of the above observation, petition is allowed.
Sd/-
JUDGE SMJ List No.: 1 Sl No.: 18