2015 (12) TMI 390 - 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:
Appeals against penalty imposed under section 234E of the Income Tax Act for late filing of TDS returns for different financial years.

Analysis:
1. Background: The appeals were filed by the assessee against the penalty imposed under section 234E of the Income Tax Act for late filing of TDS returns for the financial years 2012-13 and 2013-14.

2. Facts: The Income Tax Department processed the TDS returns under section 200A and imposed penalties on the assessee for late filing. The penalties were challenged by the assessee before the CIT(A) but were dismissed.

3. Legal Argument: The counsel for the assessee argued that previous decisions by ITAT Amritsar Bench and ITAT Ahmedabad Bench had held that section 200A does not authorize the imposition of penalties under section 234E. The counsel contended that the appeals deserved to be allowed based on these precedents.

4. Judicial Precedent: The ITAT Amritsar Bench decision in Sibia Healthcare Private Limited vs. DCIT was cited, which held that the adjustment for late filing fees under section 234E was beyond the scope of permissible adjustments under section 200A. The amendment in Section 200A by Finance Act 2015 was also discussed, which allowed for the computation of fees under section 234E post-June 2015.

5. Decision: The ITAT Ahmedabad upheld the argument that the adjustment for late filing fees under section 234E was not permissible under section 200A as it stood before the amendment in June 2015. The tribunal deleted the levy of late filing fees under section 234E, granting relief to the assessee based on the legal interpretation and precedents cited.

6. Outcome: The appeals of the assessee were allowed, and the demands raised under section 234E of the Income Tax Act were deleted. The order was pronounced in the open court on September 3, 2015, at Ahmedabad.

This detailed analysis of the judgment highlights the legal arguments, judicial precedents, and the final decision reached by the ITAT Ahmedabad in favor of the assessee regarding the penalty imposed under section 234E of the Income Tax Act.