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2016 (2) TMI 890 - AT - Income Tax


Issues Involved:
1. Appeal against levy of fees u/s.234E of the Income Tax Act, 1961 for late filing of statement for financial year 2013-14.

Detailed Analysis:
1. The assessee contested the levy of fees u/s.234E for late filing of the TDS statement, arguing that the provision of section 200A does not cover default in payment of late fees. The assessee cited precedents where the Tribunal had deleted similar penalties based on the interpretation of the law.
2. The ITAT reviewed the facts and the orders of the Tribunal cited by the assessee. It noted that the ITAT, Amristar Branch had held that the AO could not charge a fee under section 234E while processing under section 200A. The ITAT, Ahmedabad Bench also followed this reasoning in various cases, including the case of Lions Club of North Surat Charitable Trust, where the Tribunal deleted the penalty based on similar grounds.
3. The ITAT analyzed the provisions of section 234E and section 200A of the Act. It highlighted that prior to June 1, 2015, there was no provision enabling the levy of fees under section 234E during the processing of a TDS statement under section 200A. The ITAT concluded that the adjustment for the levy of fees under section 234E was beyond the scope of permissible adjustments under section 200A.
4. The ITAT emphasized that the intimation under section 200A was appealable under section 246A(a) and that the CIT(A) should have examined the legality of the adjustment made under this intimation in light of the scope of section 200A. The ITAT ruled that the levy of fees under section 234E was unsustainable in law and deleted the impugned levy.
5. The ITAT noted that the amendment in Section 200A, effective from June 1, 2015, allowed for the computation of fees in accordance with section 234E during the processing of a TDS statement. However, since the impugned order was passed before this amendment, the ITAT deleted the levy of late filing fees under section 234E.
6. The ITAT, having not been presented with any contrary judgments or convincing arguments by the Departmental Representative, upheld the judicial precedent set on the issue and deleted the levy of late filing fees imposed on the assessee. The appeal of the assessee was allowed accordingly.

This detailed analysis of the judgment highlights the legal interpretations, precedents cited, and the reasoning behind the decision to delete the levy of fees under section 234E in the given case.

 

 

 

 

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