Simhadhri Pulp Packs Private Limited, Hyderabad v. Addl. Commissioner of Income Tax ,TDS Range-2, Hyderabad

ITA 1390/Hyd/2018 | 2014-2015
Pronouncement Date: 17-03-2021 | Result: Allowed

Appeal Details

RSA Number 139022514 RSA 2018
Assessee PAN AAKCS4270K
Bench Hyderabad
Appeal Number ITA 1390/Hyd/2018
Duration Of Justice 2 year(s) 8 month(s) 18 day(s)
Appellant Simhadhri Pulp Packs Private Limited, Hyderabad
Respondent Addl. Commissioner of Income Tax ,TDS Range-2, Hyderabad
Appeal Type Income Tax Appeal
Pronouncement Date 17-03-2021
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted DB-A
Tribunal Order Date 17-03-2021
Last Hearing Date 22-02-2021
First Hearing Date 22-02-2021
Assessment Year 2014-2015
Appeal Filed On 29-06-2018
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH HYDERABAD. BEFORE SHRI S.S. GODARA JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU ACCOUNTANT MEMBER (THROUGH VIRTUAL HEARING) ITA NO S . 1390 & 1391 /HYD/2018 (ASSESSMENT YEAR S : 201 4 - 15 & 2015 - 16 ) M/S. SIMHADRI PULP PACKS PVT. LTD. 2 - 2 - 18/40/11 H - 8 HARIPRIYA DURGA BAI DESHMUKH COLONY BAGH AMBERPET HYDERABAD - 500 013 PAN AAKCS 4270K VS. ADDL. COMMISSIONER OF INCOME TAX TDS RANGE 2 HYDERABAD. APPELLANT RESPONDENT ITA NO. 139 2 / HYD/2018 (ASSESSMENT YEAR : 2015 - 16 ) M/S. SRICHAKRA TELE CORPN. 1 - 9 - 648 JATAS MOURYA TOWERS LG9 VIDYANAGAR HYDERABDA - 500 044 PAN HYDS40336C VS. ADDL. COMMISSIONER OF INCOME TAX TDS RANGE 2 HYDERABAD. APPELLANT RESPONDENT APPELLANT S BY : NONE. RESPONDENT S BY : SHRI SUNIL KUMAR PANDEY (D.R . ) DATE OF HEARING : 22.02. 2021. DATE OF PRONOUNCEMENT : 17 .03. 2021. O R D E R PER SHRI S.S. GODARA J.M. : THE INSTANT THREE APPEALS PERTAINS TO TWO ASSESSEES I.E. M/S. SIMHADRI PULP PACKS PVT. LTD. AND SRI CHAKRA TELE CORPORATION HYDERABAD. FORMER ASSESSEE'S APPEALS ITA NOS.1390 & 1391/HYD/2018 FOR AYS 2014 - 15 AND 2015 - 16 ARE DIRECTED AGAINST THE CIT(APPEALS) - 8 HYDERABADS COMMON ORDER DT.3.5.2018 2 ITA NO S . 1390 TO 1392/HYD/2018 PASSED IN CASE NO S.10070 & 1 0071/CIT(A) - 8/HYD/2017 - 18 UPHOLDING THE ASSESSING OFFICERS ACTION LEVYING LATE FILING FEES OF RS.56 100 AND RS.63 028 RESPECTIVELY. LAT T ER ASSESSEE'S APPEAL ITA NO.1392/HYD/2018 FOR ASSESSMENT YEAR 2015 - 16 IS DIRECTED AGAINST THE VERY CIT(A) S ORDER DT.8 .5.2018 PASSED IN CASE NO .10134/CIT(A) - 8/HYD/2017 - 18 UPHOLDING SIMILAR LEVY OF RS.15 200. RELEVANT PROCEEDINGS IN ALL THESE THREE CASES ARE U/S. 200A OF THE ACT. 2. IT TRANSPIRES DURING THE COURSE OF HEARING THAT THE ASSESSMENT YEARS INVOLVED BEFORE US ARE 2014 - 15 AND 2015 - 16 WHE REAS THE AMENDMENT TO THIS EFFECT IN SECTION 200A OF THE ACT CAME TO BE INSERTED IN THE ACT FROM 1.6.2015 ONLY. THIS TRIBUNAL DECISION IN ITA NOS.9069 TO 9072/DEL/2019 DT .31. 08.2020 M/S. AIRCON ENGINEERING PVT. LTD. VS. TDS. CPC GHAZIABAD HOLDS THAT THE SAME IS NOT SUSTAINABLE WITH RETROSPECTIVE EFFECT AS UNDER : 20. NOW COMING TO THE FACTS OF THE PRESENT CASE BEFORE US THE ASSESSEE UDIT JAIN HAD DEDUCTED TAX AT SOURC E U/S 195 OF THE ACT AGAINST PURCHASE OF PROPERTY. THE TAX WAS DEDUCTED AT 18.05.2015 AND WAS EVEN PAID ON 18.05.2015 THOUGH THE RETURN IN FORM NO.27A WAS FILED ON 23.06.2016. WE HOLD THAT SINCE THE PERIOD UNDER CONSIDERATION IS FIRST QUARTER OF FINANCIAL YEAR 2015 - 16 I.E. PRIOR TO THE AMENDMENT TO SECTION 200A(1) OF THE ACT WHEREIN CLAUSE (C) WAS INSERTED W.E.F. 01.06.2015 AND SINCE THE ASSESSEE HAD ALREADY DEPOSITED THE TAX DEDUCTED AT SOURCE ON THE S AME DAY OF DEDUCTION THERE WAS REASONABLE CAUSE IN THE HANDS OF THE ASSESSEE IN NOT DEPOSITING THE RETURN IN FORM NO.27A AND THE SAID DEFAULT NEEDS TO BE CONDONED. EVEN OTHERWISE FOLLOWING THE RATIO LAID DOWN IN THE DECISIONS RENDERED TO IN THE PARAS ABO VE THE JURISDICTIONAL ISSUE OF EXERCISE OF POWER BY THE ASSESSING OFFICER IN CHARGING LATE FILING FEE U/S 234E OF THE ACT SUFFERS FROM INFIRMITY AS CLAUSE (C) TO SECTION 200(A)(1) OF THE ACT HAS BEEN M ADE APPLICABLE SPECIFICALLY FROM THE DATE FROM 01.06.2015. SINCE THE PERIOD OF DEFAULT WAS BEFORE THE SAID DATE I.E. 01.06.2015 THERE IS NO MERIT IN CHARGING LATE FILING FEE U/S 234E OF THE ACT. AS WE HOLD THAT NO LATE FILING FEE IS TO BE CHARGED THEN CO NSEQUENT INTEREST CHARGED U/S 220(2) OF THE ACT ALSO DO NOT SURVIVE.' 3 ITA NO S . 1390 TO 1392/HYD/2018 21. WE FIND THE DELHI BENCH OF THE TRIBUNAL IN THE FOLLOWING DECISIONS ALSO HAVE HELD THAT NO FEE CAN BE LEVIED U/S 234E IN TERMS OF SECTION 200A WHERE THE DATE OF FILING OF TDS STATEMENT AND DATE OF INTIMATION ARE MUCH PRIOR TO 01.06.2015: - I) PRAKASH INDUSTRIES LTD. VS. DCIT ITA NOS .5865 TO 5869/DEL/2016 ORDER DATED 29.07.2019; II) M/S AJVIN INFOTECH PVT. LTD. VS. DCIT ITA NO .2305 & 2306/DEL/2017 ORDER DATED 04.03.2020; III) M/S D.D. MOTORS HARYANA VS. DCIT ITA NO.956/DEL/2017 ORDER DATED 18.10.2019; AND IV) DISTRICT HEALTH & WELFARE SOCIETY VS. ITO ITA NO .7473/DEL/2018 ORDER DATED 26.04.2019. 22. SO FAR AS THE VARIOUS DECISIONS RELIED ON BY LD. DR ARE CONCERNED WE HAVE CAREFULLY GONE THROUGH ALL THOSE DECISIONS AND ARE OF THE OPINION THAT THESE CAN BE DIVIDED BROADLY INTO THREE CATEGORIES I.E. A) PROVISIONS OF SECTION 234 E ARE CONSTITUTIONALLY VALID B) RULE OF CONSISTENCY IS NOT APPLICABLE AND C) L ATE OF FEE U/S. 234 E IS LEVIABLE FOR DEFAULTS OF PERIOD IN FILING THE TDS/ TCS STATEMENTS/ RETURNS EVEN FOR THE PERIOD PRIOR TO 01 - 06 - 2015 23.1 SO FAR AS THE ARGUMENT OF THE LD. DR ON THE BASIS OF VARIOUS DECISIONS INCLUDING THE DECISION OF HON'BLE DELHI HIGH COURT IN THE CASE OF BISWAJIT DAS (SUPRA) THAT PROVISIONS OF SECTION 234E ARE CONSTITUTIONALLY VALID IS CONCERNED NO DOUBT THE PROVISIONS OF SECTION 234 E HAVE BEEN HELD TO BE CONSTITUTIONALLY VALID WHICH IS NOT THE DISPUTE BEFORE US. SO FAR AS THE ARGUMENT OF LD. DR ON RULE OF CONSISTENCY IS CONCERNED THE SAME IN OUR OPINION IS NOT ABSOLUTE BUT IN THE PRESENT CASE WE ARE FACED WITH A SITUATIO N WHICH HAS BEEN CONSIDERED BY OUR COORDINATE BENCHES AND THERE IS NO SUBSEQUENT DEVELOPMENT TO DEPART THERE FROM. MOREOVER OUR COORDINATE BENCHES HAVE FOLLOWED ONE APPROACH IN VIEW OF CONFLICTING DECISION OF DIFFERENT HIGH COURTS IN THE ABSENCE OF ANY DE CISION OF THE JURISDICTIONAL HIGH COURT. SO FAR AS THE LEVY OF FEE U/S. 234E FOR DEFAULTS OF PERIOD IN FILING TDS/TCS STATEMENTS / RETURNS EVEN FOR THE PERIOD PRIOR TO 1.06.2015 IS CONCERNED AS MENTIONED EARLIER THERE ARE CONFLICTING DECISIONS BY DIFFEREN T HIGH COURTS AND THERE IS NO DECISION ON THIS ISSUE BY THE JURISDICTIONAL HIGH COURT. WHILE HON'BLE KARNATAKA HIGH COURT IS IN FAVOUR OF THE ASSESSEE HOLDING THAT THE AMENDMENTS BROUGHT IN STATUTE W.E.F. 01.06.2015 ARE PROSPECTIVE IN NATURE AND HENCE NOTI CES ISSUED U/S. 200 A OF THE ACT FOR COMPUTATION AND INTIMATION IN PAYMENT OF LATE FILING FEE U/S.234E OF THE ACT RELATING TO THE PERIOD OF TAX DEDUCTION PRIOR TO 01.06.2015 WERE NOT MAINTAINABLE THE H ON'BLE GUJARAT HIGH COURT HAS DECIDED THE ISSUE AGAINST THE ASSESSEE AND IN FAVOUR OF THE REVENUE. AFTER CONSIDERING THE ABOVE CONFLICTING DECISIONS THE COORDINATE BENCHES OF THE TRIBUNAL ARE TAKING THE VIEW THAT WHEN THERE ARE CONFLICTING DECISIONS THE DECISION IN FAVOUR OF THE ASSESSEE SHOULD BE FOLLOWED IN THE LIGHT OF DECISION OF HON'BLE SUPREME COURT IN THE CASE OF VEGETABLES PRODUCTS LIMITED (SUPRA). IN THE LIGHT OF THE ABOVE 4 ITA NO S . 1390 TO 1392/HYD/2018 DISCUSSION WE HOLD THAT THE CIT(A) IS NOT JUSTIFIED IN CONFIRMING THE LATE FEE LEVIED BY THE AO U/S. 200 A R.W.S. 234 E SINCE THE DEFAULTS ARE PRIOR TO 1.06.2015. ACCORDINGLY WE SET ASIDE THE ORDER OF THE LD. CIT(A) AND THE FEE LEVIED U/S. 234 E AND INTEREST THERE ON U/S. 220 (2) IS DIRECTED TO BE DELETED. 24. IN THE RESULT ALL THE APPEALS FILED BY THE ASSESSEES ARE ALLOWED. 3. WE ADOPT THE ABOVE REASONING MUTA T IS MUTANDI S TO DELETE T HE IMPUGNED LATE FILING FEE ( S ) IN ALL THESE CASES. 4. THESE ASSESSEES APPEALS ARE ALLOWED IN ABOVE TERMS . ORDER PRONOUNCED IN THE OPEN COURT ON 17TH MARCH 2021. SD/ - SD/ - (LAXMI PRASAD SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER * REDDY GP COPY TO : 1. M/S. SIMHADRI PULP PACKS PVT. LTD. 2 - 2 - 18/40/11 H - 8 HARIPRIYA DURGA BAI DESHMUKH COLONY BAGH AMBERPET HYDERABAD - 500 013 AND M/S. SRICHAKRA TELE CORPN. 1 - 9 - 648 JATAS MOURYA TO WERS LG9 VIDYANAGAR HYDERABDA - 500 044 2. ADDL. COMMISSIONER OF INCOME TAX TDS RANGE 2 HYDERABAD. 3. PR. C I T HYDERABAD. 4. CIT(TDS) - HYDERABAD. 5. DR ITAT HYDERABAD. 6. GUARD FILE. BY ORDER SR. PVT. SECRETARY ITAT HYDERABAD.