2015 (9) TMI 1290 - AT - Income Tax

Levy of fees under section 234E - intimation issued under section 200A in respect of processing of TDS for the Assessment Year 2013-14 - Held that - The issue in appeal is now squarely covered in favour of the assessee by the decision of ITAT Amritsar Bench in the case of Sibia Healthcare Private Limited vs. DCIT 2015 (6) TMI 437 - ITAT AMRITSAR . No 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, I hereby delete the levy of late filing fees under section 234E of the Act by way of impugned intimation issued - Decided in favour of assessee

Summary

Issues involved:
Challenge to correctness of order upholding levy of fees under section 234E of the Income Tax Act, 1961 on the assessee by the ld. CIT(A) based on intimation issued under section 200A for the Assessment Year 2013-14, Q2.

Analysis:
The appellant challenged the correctness of the order upholding the levy of late filing fees under section 234E during the processing of TDS return under section 200A of the Act. The ITAT Ahmedabad considered the issue in light of a similar case decided by the ITAT Amritsar Bench. The ITAT Amritsar decision highlighted that the adjustment in respect of levy of fees under section 234E was beyond the permissible adjustments under section 200A. The ITAT emphasized that the intimation under section 200A did not enable a demand for fees under section 234E. The ITAT noted that the impugned levy of fees under section 234E was unsustainable in law and thus deleted the levy, granting relief to the assessee.

The ITAT also noted the amendment in Section 200A post June 1, 2015, which allowed for the computation of fees in accordance with the provisions of section 234E during the processing of TDS statements. However, as the impugned order was passed before this amendment, the ITAT concluded that the levy of late filing fees under section 234E was not applicable in this case. The ITAT considered the entirety of the case and deleted the levy of late filing fees under section 234E, providing relief to the assessee.

In conclusion, the ITAT allowed the appeal, pronouncing the order on September 3, 2015, and deleting the levy of late filing fees under section 234E of the Act based on the impugned intimation issued under section 200A for the Assessment Year 2013-14, Q2.