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2019 (1) TMI 1757 - AT - Income TaxLevy of fees charged u/s 234E - intimations issued u/s 200A - HELD THAT - Finding ourselves as being in agreement with the view taken by the Tribunal in the case of Tata Rice Mills 2017 (10) TMI 1504 - ITAT AMRITSAR hence are of the considered view that the ACIT-TDS, CPC Ghaziabad in the case before us had erred in levying fees under Sec.234E in respect of tax deducted at source for the four quarters prior to 01.06.2015 in respect of A.Y. 2015-16. We thus not being persuaded to subscribe to the view taken by the CIT(A) who had upheld the levy of fees by the A.O, thus set aside his order and vacate the demand raised by the A.O under Sec.234E in the hands of the assessee for all the four quarters for the year under consideration.
Issues:
Levy of fees under Sec.234E of the Income Tax Act, 1961 for A.Y 2015-16 based on delayed filing of TDS returns. Detailed Analysis: 1. Issue of Levy of Fees under Sec.234E: The appeals filed by the assessee were against the order passed by CIT(A)-2, Jalandhar, related to the consolidated order arising from intimations issued under Sec.200A of the Income Tax Act, 1961 for A.Y 2015-16. The assessee contested the fees charged under Sec.234E due to delayed filing of TDS returns. The CIT(A) upheld the levy of fees, stating that the returns were filed after the provision enabling the levy of fees under Sec.234E was incorporated in Sec.200A post 01.06.2015. The CIT(A) concluded that the ACIT was justified in imposing fees for late filing of TDS returns. 2. Judicial Precedents and Arguments: The assessee appealed the CIT(A)'s decision, citing the judgment of the Hon'ble High Court of Karnataka and the ITAT, Chandigarh, which held that no fees under Sec.234E could be charged for the period before 01.06.2015. The authorized representative argued that the ACIT had erred in levying fees under Sec.234E for A.Y. 2015-16. The Departmental Representative supported the CIT(A)'s decision, emphasizing the delayed filing of TDS returns by the assessee. 3. Tribunal's Decision and Legal Interpretation: After considering the arguments and precedents, the Tribunal found that the levy of fees under Sec.234E for the period before 01.06.2015 was not valid. Relying on the judgments of the Hon'ble High Court of Karnataka and the ITAT, Chandigarh, the Tribunal concluded that the fees charged under Sec.234E prior to 01.06.2015 were without legal authority. Additionally, the Tribunal referred to a similar case where it was observed that the amendment under Sec.200A was effective from 01.06.2015 and could not be applied retrospectively. Consequently, the Tribunal set aside the CIT(A)'s decision and vacated the demand raised by the ACIT under Sec.234E for all four quarters of A.Y. 2015-16. 4. Final Verdict and Outcome: The Tribunal allowed the appeals filed by the assessee for A.Y. 2015-16, thereby ruling in favor of the assessee based on the legal interpretation that fees under Sec.234E could not be levied for the period preceding 01.06.2015. The demand raised by the ACIT for late filing of TDS returns was vacated for all four quarters of the relevant assessment year.
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