2016 (1) TMI 237 - AT - Income Tax

Levy of late filing fee u/s.234E while processing the statement furnished by the assessees under Section 200A - Held that - Similar issue was considered by this Tribunal in the case of Smt. G. Indhirani and others 2015 (7) TMI 640 - ITAT CHENNAI wherein held Assessing Officer has exceeded his jurisdiction in levying fee under Section 234E while processing the statement and make adjustment under Section 200A of the Act. Therefore, the impugned intimation of the lower authorities levying fee under Section 234E of the Act cannot be sustained in law. However, it is made clear that it is open to the Assessing Officer to pass a separate order under Section 234E of the Act levying fee provided the limitation for such a levy has not expired. Accordingly, the intimation under Section 200A as confirmed by the CIT(Appeals) in so far as levy of fee under Section 234E is set aside and fee levied is deleted. - Decided in favour of assessee.

Summary

Issues:
Levy of late filing fee u/s.234E of the I.T.Act, 1961 while processing the statement furnished by the assessee u/s.200A.

Analysis:
The appeal was against the order of the Commissioner of Income-tax(Appeals) regarding the levy of late filing fee u/s.234E of the I.T.Act, 1961 while processing the statement furnished by the assessee u/s.200A. The Tribunal referred to a similar issue in the case of Smt. G. Indhirani and others and observed that prior to 01.06.2015, there was no provision in Section 200A for adjusting the statement by levying fee under Section 234E. The Tribunal highlighted that the Assessing Officer cannot make any adjustment other than the prescribed ones in Section 200A. The Finance Act, 2015 amended Section 200A to allow for the computation of fee under Section 234E from 01.06.2015. The Tribunal emphasized that the Assessing Officer exceeded jurisdiction by levying fee under Section 234E while processing the statement under Section 200A before 01.06.2015. The Tribunal concluded that the fee levied by the Assessing Officer under Section 234E in this case was beyond the scope of adjustment provided under Section 200A and therefore unsustainable in law.

The Tribunal addressed the argument that the assessee should voluntarily pay the fee under Section 234E and that the Assessing Officer had no authority to levy the fee. The Tribunal rejected this argument, stating that the assessee is liable to pay the fee as per Section 234E before delivering the statement under Section 200(3) of the Act. If the assessee fails to pay the fee, the assessing authority can levy the fee while processing the statement under Section 200A after 01.06.2015. However, before this date, the Assessing Officer could separately levy the fee under Section 234E. The Tribunal drew parallels from the Indian Penal Code, emphasizing that fines must be levied by the concerned authority, not voluntarily paid by the accused. The Tribunal clarified that the assessing authority could pass a separate order under Section 234E for late filing fee before 01.06.2015 but not while processing the statement under Section 200A.

The Tribunal concluded that the Assessing Officer had exceeded jurisdiction by levying fee under Section 234E while processing the statement under Section 200A and making adjustments. The Tribunal set aside the intimation of fee under Section 234E, allowing the appeal of the assessee. It was clarified that the Assessing Officer could pass a separate order under Section 234E for late filing fee if the limitation had not expired. The Tribunal upheld other adjustments made by the Assessing Officer in the intimation. Consequently, the appeal of the assessee was allowed based on the consistent view taken by the Tribunal in similar cases.

In summary, the Tribunal held that the Assessing Officer had overstepped authority by levying the late filing fee under Section 234E while processing the statement under Section 200A before the amendment date of 01.06.2015. The Tribunal emphasized that the fee must be levied separately under Section 234E and not as an adjustment under Section 200A before the specified date. The Tribunal allowed the appeal of the assessee based on this interpretation and consistent views in similar cases.