2015 (9) TMI 1231 - AT - Income Tax

Levy of fees under section 234E - late filing of TDS returns - proceedings u/s 200A - Held that - All the appeals is now squarely covered in favour of the assessee by the decision of ITAT in the case of Sibia Healthcare Private Limited vs. DCIT 2015 (6) TMI 437 - ITAT AMRITSAR . When the above judicial precedent was brought to the notice of the ld. Departmental Representative, he did not have much to say except to place his reliance on the orders of the authorities below. He fairly did not dispute that the provisions accepting levy of late filing fees under section 234E have indeed been brought to the statute w.e.f. 1st June, 2015 and the impugned order was passed much before that date. In view of the above discussions and bearing in mind entirety of the case, hereby delete the levy of late filing fees in all these three appeals under section 234E of the Act by way of impugned intimation issued. The assessee gets the relief accordingly. - Decided in favour of assessee.

Summary

Issues:
Challenge to levy of fees under section 234E of the Income Tax Act, 1961 through intimation issued under section 200A for Assessment Years 2013-14.

Analysis:
The appellant challenged the correctness of three separate orders upholding the levy of fees under section 234E by the ld. CIT(A) through intimation issued under section 200A for the Assessment Years 2013-14. The appellant contended that the levy of late filing fees in the processing of TDS return was erroneous. Despite raising 16 grounds of appeal, the primary grievance was against the levy of fees. The issue was whether the levy of fees under section 234E was justified in the intimation issued under section 200A.

The ITAT Ahmedabad referred to a decision by ITAT Amritsar Bench in a similar case, where it was observed that the levy of fees under section 234E could not be made in the course of an intimation under section 200A. The relevant statutory provisions of sections 234E and 200A were discussed to understand the legal framework. The amendment in section 200A brought by the Finance Act 2015 was highlighted, which allowed for the computation of fees under section 234E in the processing of TDS statements post 1st June 2015. However, the impugned orders were passed before this amendment.

The ITAT concluded that the adjustment in respect of levy of fees under section 234E was beyond the scope of permissible adjustments under section 200A as it existed at that time. The intimation under section 200A was deemed appealable, and the CIT(A) should have examined the legality of the adjustment in light of the scope of section 200A. Since no enabling provision existed for the levy of fees under section 234E in the intimation, the levy was deemed unsustainable in law. The ITAT upheld the appellant's grievance and deleted the levy of fees under section 234E.

In view of the legal precedent and the absence of enabling provisions for the levy of fees under section 234E in the impugned intimation, the ITAT allowed all three appeals and deleted the levy of late filing fees. The judgment was pronounced on 3rd September 2015, providing relief to the appellant in all three cases.