2016 (2) TMI 675 - AT - Income Tax

Levy of fees under section 234E - intimation issued under section 200A in respect of processing of TDS - Held that - We find that the issue in all these appeals 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 adjustment in respect of levy of fees under section 234E was indeed beyond the scope of permissible adjustments contemplated under section 200A. As intimation under section 200A, raising a demand or directing a refund to the tax deductor, can only be passed within one year from the end of the financial year within which the related TDS statement is filed, and as the related TDS statement was filed on 19th February 2014, such a levy could only have been made at best within 31st March 2015. That time has already elapsed and the defect is thus not curable even at this stage. In view of these discussions, as also bearing in mind entirety of the case, the impugned levy of fees under section 234E is unsustainable in law. We, therefore, delete the impugned levy of fee under section 234E of the Act. - Decided in favour of assessee.

Summary

Issues Involved:
Appeal against late filing fee under section 234E for Assessment Year 2013-14.

Analysis:

Issue 1: Late Filing Fee under Section 234E
The appellant challenged the late filing fee of Rs. 46,400 levied by the DCIT, TDS, CPC, Ghaziabad under section 234E for the 3rd Quarter of AY 2013-14. The authorized representative cited a similar case before the Tribunal where a favorable decision was made for the assessee. The Tribunal referred to various High Court decisions and the provisions of section 234E, emphasizing that the fee for defaults in furnishing statements should not exceed the tax deductible or collectible amount. The Tribunal also discussed the provisions of section 200A and the subsequent amendment brought by the Finance Act 2015, allowing the computation of the fee in accordance with section 234E. The Tribunal concluded that the adjustment for the levy of fees under section 234E was beyond the scope of permissible adjustments under section 200A, and the levy was unsustainable in law. Consequently, the Tribunal upheld the grievance of the assessee and deleted the impugned levy of the fee under section 234E.

Issue 2: Judicial Precedents and Decision
The Tribunal considered the judicial precedent presented by the appellant and noted that no contradictory information was provided by the Revenue. The Tribunal, following the decision of a Coordinate Bench, allowed the appeal filed by the assessee and deleted the late fee charged under section 234E of the Act. The Tribunal, based on the similar reasoning and facts, did not concur with the findings of the CIT(A) and granted relief to the assessee by deleting the late filing fees.

In conclusion, the Tribunal allowed the appeal filed by the assessee against the levy of late filing fees under section 234E for the Assessment Year 2013-14. The Tribunal emphasized the limitations of permissible adjustments under section 200A and the inapplicability of the levy of fees under section 234E in the given circumstances. The decision was based on judicial precedents and statutory provisions, providing relief to the appellant against the impugned levy.