HERE IS THE MOST AWAITED DECISION ON SECTION 234E

HERE IS THE MOST AWAITED DECISION ON SECTION 234E:

FROM ITAT, AMRITSAR in Sibia Healthcare Pvt. Ltd. vs. DCIT (TDS) ITA No. 90/2015, order dated 09.06.2015:

In our considered view, the adjustment in respect of levy of fees under section 234E was indeed beyond the scope of permissible adjustments contemplated under section 200A. This intimation is an appealable order under section 246A(a), and, therefore, the CIT(A) ought to have examined legality of the adjustment made under this intimation in the light of the scope of the section 200A.

Now, The issue is whether a levy of fee u/s 234E could be effected in the course of intimation under section 200A. The answer is clearly in negative. No other provision enabling a demand in respect of this levy has been pointed out to us and it is thus an admitted position that in the absence of the enabling provision under section 200A, no such levy could be effected.

COMMENT:

Hon'ble ITAT considered the amendment in s. 200A w.e.f 01.06.15 in detaill while deciding as above.

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