2017 (3) TMI 1767 - AT - Income Tax

Late filing fee u/s 234E - late filing of TDS return by 41 days - fee levied for period prior to 01/06/2015 - scope of amendment - HELD THAT - TDS statements which have been filed earlier to 01.06.2015 then no fee is leviable u/s 234E of the Act. All the judgments have been passed on the basis of the decision of the Hon ble Karnataka High Court in case of Fatheraj Singhvi 2016 (9) TMI 964 - KARNATAKA HIGH COURT . In view of the said discussion and by relied upon the decision mentioned above, we are of the view that the finding of the CIT(A) is not justifiable, therefore, we set aside the finding of the CIT(A) in all the appeals and delete the fee u/s 234E of the Act. - Decided in favour of assessee.

Summary

Issues:
Late filing fee under section 234E of the Income Tax Act, 1961 for delayed TDS return filing.

Analysis:
The appeal was filed against the order of the ld.CIT(A)-59, Mumbai for the assessment year 2014-15 regarding the confirmation of a late filing fee of ?8,200 under section 234E for a delay of 41 days in filing the TDS return. The assessee did not appear for the hearing, leading to an ex-parte disposal of the appeal after hearing the ld.DR. The assessee received intimation for default in TDS payment and late filing penalty. The appeal before the ld.CIT(A) was dismissed, following a Bombay High Court decision stating that section 234E fee is not akin to tax and does not allow for appeal or delay condonation by the AO. The argument was made that the fee was wrongly levied, and the provisions of section 200A did not empower the officer to compute the fee for assessments before 1.6.2015.

The arguments included the insertion of section 200A for TDS statement processing and fee determination under section 234E from 1.6.2015, and the absence of authority to compute the fee for assessments before this date. A Karnataka High Court judgment supported this stance, setting aside fee demands for periods before 1.6.2015. As the relevant period fell before this date, the order directed the AO to delete the late filing fee of ?8,200. The decision was based on the absence of AO power to impose the fee, aligning with the Karnataka High Court's ruling and the provisions of the law. The order allowed the appeal, setting aside the late filing fee.

In conclusion, the Tribunal set aside the late filing fee under section 234E for the delayed TDS return filing, citing the absence of authority for the AO to levy the fee for periods before 1.6.2015 and aligning with the Karnataka High Court judgment. The decision emphasized the statutory provisions and directed the AO to delete the fee of ?8,200, allowing the appeal of the assessee.