2015 (12) TMI 290 - AT - Income Tax

Levy of late filing fees under section 234E - intimation issued under section 200A in respect of processing of TDS - Held that - As 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 we hereby delete the levy of late filing fees under section 234E of the Act by way of impugned intimation issued. See Indian Overseas Bank Vs. DCIT 2015 (9) TMI 1290 - ITAT AHMEDABAD - Decided in favour of assessee

Summary

Issues Involved:
1. Condonation of delay in filing appeal before CIT(A).
2. Levy of late fee under section 234E of the Income Tax Act.
3. Interpretation of provisions of section 200A and 234E in relation to TDS returns.

Issue 1: Condonation of delay in filing appeal before CIT(A)
The assessee filed appeals against the order of the ld.CIT(A)-8, citing a delay of 35 days in filing the appeal. The assessee moved an application for condonation of delay, explaining that the delay was due to human error. The ld.First Appellate authority dismissed the application, stating that the assessee failed to submit the TDS return in time and did not challenge the order of the DCIT, CPC, TDS promptly. The ITAT, after considering the explanation provided by the assessee, condoned the delay and proceeded to decide the appeal on merit. The ITAT found no mala fide intention and allowed the appeals of the assessee, except for specific grounds related to late fees and interest.

Issue 2: Levy of late fee under section 234E of the Income Tax Act
The case involved the late filing of TDS returns by the assessee, resulting in the imposition of late filing fees under section 234E. The ld.First Appellate Authority upheld the levy of fees, citing the appeal as time-barred. However, the ITAT referred to judicial precedents and concluded that the levy of fees under section 234E was beyond the permissible adjustments under section 200A. The ITAT held that the impugned levy of fees was unsustainable in law and deleted the late filing fees under section 234E, providing relief to the assessee.

Issue 3: Interpretation of provisions of section 200A and 234E in relation to TDS returns
The ITAT analyzed the provisions of section 200A and 234E concerning the processing of TDS returns and the computation of fees for defaults in furnishing statements. The ITAT highlighted the limitations of adjustments permissible under section 200A and emphasized that the levy of fees under section 234E in the impugned intimation was not legally sustainable. The ITAT referred to specific legal provisions and judicial decisions to support its conclusion, ultimately allowing the appeals of the assessee and deleting the demands raised under section 234E along with consequential interest on nonpayment.

In conclusion, the ITAT allowed both appeals of the assessee, providing relief by condoning the delay in filing the appeal, and deleting the levy of late filing fees under section 234E based on the interpretation of relevant legal provisions and judicial precedents.