2019 (11) TMI 1407 - AT - Income Tax

Late fee imposed u/s 234E r.w. 200A - HELD THAT - We find the issue raised in the present appeal is similar to the issue raised in the case of Medical Superintendent Rural Hospital, DOBI BK 2018 (10) TMI 1587 - ITAT PUNE wherein held that charging of late fee u/s 234E is not maintainable even if the assessee files TDS returns belatedly and the AO issues intimation u/s 200A of the Act after 01.06.2015 charging late filing fee u/s 234E - We find force in the arguments of Shri Kishore Phadke, Ld.A.R. and the imposition of late fee u/s 200A r.w 234E of the Act confirmed by Ld.CIT(A) is set aside. Thus, additional ground raised by the assessee is allowed.

Summary

Issues Involved:
Late fee imposed under section 234E for A.Y. 2013-14 - Jurisdiction of AO to charge late fee under section 234E - Prospective nature of amendment - Applicability of late fee after 01.06.2015.

Analysis:

1. The appeals were filed by the assessee against a common order passed by CIT(A)-3, Nashik for A.Ys. 2013-14 to 2015-16. The assessee raised an additional ground of appeal regarding the imposition of late fee under section 234E for A.Y. 2013-14.

2. The assessee requested to take up the additional ground as a preliminary issue, which was agreed upon by both parties. The additional ground was raised in all appeals with similar facts, differing only in amounts. The Tribunal decided to adjudicate the additional ground in one appeal and pass a consolidated order for convenience.

3. The main issue was whether the CIT(A) was justified in confirming the late fee imposed in Q4-24Q for A.Y. 2013-14 under section 200A read with 234E of the Act. The assessee contended that the AO had no jurisdiction to charge late fee under section 234E due to the absence of enabling procedures for late fee computation under section 200A for the relevant year.

4. The assessee argued that the late fee computation provision was inserted in the Finance Act with prospective effect from 01.06.2015. Citing a Tribunal decision, the assessee claimed that charging late fee under section 234E was not valid if returns were filed after 01.06.2015, and the late fee was imposed later. The Tribunal found merit in the arguments and set aside the imposition of late fee under section 200A read with 234E.

5. The Tribunal referred to a previous case where it was held that charging late fee under section 234E was not permissible even if TDS returns were filed belatedly and the intimation was issued after 01.06.2015. Consequently, the additional ground raised by the assessee was allowed, rendering the main grounds unnecessary for adjudication.

6. Subsequently, all appeals by the assessee were allowed based on the decision in the initial appeal. The Tribunal pronounced the order on 6th November 2019, granting relief to the assessee in all the appeals.