Income Tax Appellate Tribunal - Amritsar
Punjab Ict Educational Society, ... vs Deputy Commissioner Of Income Tax - Cpc - ... on 17 December, 2019
IN THE INCOME TAX APPELLATE TRIBUNAL
AMRITSAR BENCH, AMRITSAR
BEFORE SH. N.K.CHOUDHRY, JUDICIAL MEMBER AND
SH. O.P.MEENA, ACCOUNTANT MEMBER
ITA Nos. 657 to 660/Asr/2019
Assessment Years: 2013-14 & 2014-15
Punjab ICT Education Society, Dy. CIT,
Desh Bhagtan, Govt. Sr. Sec. CPC-TDS, Ghaziabad.
School, Dhoot Kalan, Vs.
Hoshiarpur-144 210.
[PAN:JLDP0 4153C]
(Appellant) (Respondent)
ITA Nos. 661 to 663/Asr/2019
Assessment Year: 2013-14
Sh. Rakesh Dhir Dy. CIT,
Prop. Akul Silver Center, CPC-TDS, Ghaziabad
Kotwali Bazar, Vs.
Hoshiarpur-146001
[PAN:JLDR0 4111C]
(Appellant) (Respondent)
Appellant by: None
Respondent by: Sh. Alok Kumar (Ld. CIT- DR)
ITA Nos.664 to 668/Asr/2019
Assessment Years: 2014-15 & 2015-16
Divisional Forest Officer, Income Tax Officer,
Forest Division, TDS-1, Jalandhar.
Hoshiarpur. Vs.
[PAN:JLDD0 0430D]
(Appellant) (Respondent)
Appellant by: Written Submissions
Respondent by: Smt. Raman Damathia (Ld. DR)
Date of hearing: 17.12.2019
Date of pronouncement: 17.12.2019
2 ITA Nos. 657 to 668/Asr/ 2019
(AYs 2013-14, 2014-15 & 2015-16)
ORDER
PER N.K.CHOUDHRY, JM:
All the above appeals preferred by the Assessees against separate orders dated 14.08.2019 & 21.08.2019 passed by the Ld. CIT(A)-1, Jalandhar u/s 250(6) of the Income Tax Act, 1961 (hereinafter called as the 'Act') as per the details given below.
SL. Appeal Number & Asst. Year Date of of
Office
No. CIT(A) order CIT(A)
1. ITA No.657/Asr/2019- (A.Y.2013-14) 21.08.2019 CIT(A)-1, Jal.
2. ITA No.658/Asr/2019 -Do- -Do- -Do-
3. ITA No.659/Asr/2019 -Do- -Do- -Do-
4. ITA No.660/Asr/2019 (A.Y.2014-15) -Do- -Do-
5. ITA No.661/Asr/2019 (A.Y.2013-14) -Do- -Do-
6. ITA No.662/Asr/2019 -Do- -Do- -Do-
7. ITA No.663/Asr/2019 -Do- -Do- -Do-
8. ITA No.664/Asr/2019 (A.Y.2014-15) 14.08.2019 -Do-
9. ITA No.665/Asr/2019 -Do- 21.08.2019 -Do-
10. ITA No.666/Asr/2019 (A.Y.2015-16) 14.08.2019 -Do-
11. ITA No.667/Asr/2019 -Do- 21.08.2019 -Do-
12. ITA No.668/Asr/2019 -Do- 21.08.2019 -Do-
2. As all the above appeals under consideration involved similar and identical issue therefore, for the sake of brevity, ITA No.657/Asr/2019 (A.Y.2013-14) and its facts, shall be taken into consideration as a lead case and result of the same shall apply mutatis mutandis to all appeals under consideration.
3 ITA Nos. 657 to 668/Asr/ 2019(AYs 2013-14, 2014-15 & 2015-16)
3. The brief facts of the case are that in the instant appeal the Assessee thought deducted the TDS on salary payments and deposited well in time, however filed its TDS Quarterly statement in Form no. 24Q for Quarter 2 of F.Y. 2012-13 on 09.11.2013 which was due to be filed on or before 15.10.2012. Consequently the delay of 390 days in filing of TDS statements has been occurred. Therefore the Assessing Officer (TDS-CPC) had imposed a late fee U/s 234E for 390 days of Rs.15,000/- for delay in filing of Quarterly TDS statement.
4. Aggrieved by the intimation u/s 200A wherein fee u/s 234E has been levied, the assessee filed first appeal before Ld. CIT(A) who vide impugned order dated 21.08.2019 dismissed the appeal of the assessee, while relying upon the judgment passed by the Gujrat High Court in the case of Rajesh Kourani vs. UOI [2017] 83 Taxmann.com. 137 (Guj).
5. On being aggrieved, the Assessee preferred the instant appeal against the impugned order.
6. Having heard the parties at length and perused the material available on record. Issue in the instant case relates to the imposition of late fee for delay in filling of TDS statement(s) prior to amendment by way of finance Act, 2015 which came into effect from 1st June 2015. The question arise as to whether the late can be imposed for the period prior to 1st June 2015 when the Amendment was made vide Finance Act 2015 and as to whether there was enabling provisions for levy of late fee prior to 1st June 2015.
4 ITA Nos. 657 to 668/Asr/ 2019(AYs 2013-14, 2014-15 & 2015-16)
7. The Co-ordinate Bench in the case of M/s M.G.N. Khalsa High School, Jalandhar vs. ACIT, CPV Cell-TDS, Ghaziabad in ITA Nos.16,17 & 18/Asr/2019 decided on 25.07.2019 analyzed the provisions of law and also taken into consideration the said judgment of the Gujrat High Court in Rajesh Kourani (supra) and other judgments of various High Courts on the identical issue and held, the provisions of charging fee under section 234E for default in furnishing TDS Return came in operation only after 1st June, 2015 when the enabling provisions in the Act have been provided, but prior to that if there was any delay in furnishing of TDS returns and the same have been processed before 1st June, 2015 then no late fee could be levied.
8. Even ITAT, Amritsar Bench in the case of SIBIA HEALTHCARE (P) Ltd. reported as 171 TTJ 145 (Asr) clearly held that intimation issued u/s 200A of the Act for demand of fees u/s 234E was not valid in law, as the same pertains to the period prior to 1st June, 2015.
9. No doubt there are judgments specifically as refereed above to the issue under consideration, on both sides as relied upon by the Ld. CIT(A) while passing the impugned order and by the Asseeee before us. However, as per decision of Hon'ble Apex Court in the case of CIT Vs. Vegetable Products 88 ITR 192, wherein the Hon'ble Court laid down the proposition to the effects "whenever there are two reasonable constructions of a taxing provision are possible that construction which favours the assessee must be adopted" meaning thereby when two different views of Court are available on an issue then the view which favors the assessee or the judgment which favours the assessee should be followed. Hence we do not have hesitation to follow the judgment of Hon'ble Karnataka High Court in the case of 5 ITA Nos. 657 to 668/Asr/ 2019 (AYs 2013-14, 2014-15 & 2015-16) Fatheraj Singhvi & Ors. vs. Union of India ((2016) 289 CTR (KAR) 602 wherein while dealing with the same issue analyzed the amendment dated 1st June, 2015 and construed that substitution made by Clause (c) to (f) of sub-section (1) of Sec. 200A can be read as having prospective effect and not having retroactive character or effect. Resultantly, the demand u/s 200A for computation and intimation for the payment of fee under section 234E could not be made in purported exercise of power under section 200A by the respondent for the period of the respective Asst. Year prior to 1st June, 2015.
10. Considering the facts of the instant case are identical to the facts of the orders passed by Hon'ble Karnataka High Court in the case of Fatheraj Singhvi & Ors. vs. Union of India (supra), and by the ITAT, Amritsar Bench in M/s. M.G.N. Khalsa High School, Jalandhar (supra) and in the case of SIBIA HEALTHCARE (P) Ltd. reported as 171 TTJ 145 (Asr), we are of the considered opinion that late fee for the delay in filing the TDS statements, cannot be levied for the period prior to 1st June, 2015, hence we are inclined to delete the late fee imposed by the AO and affirmed by the ld. CIT(A). Consequently the appeal is liable to be allowed.
11. In the result, all the appeals filed by the assessee stands allowed.
Order pronounced in the open Court on 17/12/2019.
Sd/- Sd/-
(O.P.MEENA) (N.K.CHOUDHRY)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Dated: 17/12/2019.
/PK/ Ps.
6 ITA Nos. 657 to 668/Asr/ 2019
(AYs 2013-14, 2014-15 & 2015-16)
Copy forwarded to:
1.The Appellants
2.The Respondents
3.The CIT,s
4.Then CIT,s(Appeals)
5.SR. DR, I.T.A.T. Amritsar
6.Guard File
True Copy
By Order