2019 (12) TMI 1304 - AT - Income Tax

Fees payable u/s.234E - intimation u/s.200A - HELD THAT - If there is late filing of those TDS statements then the Revenue Authorities may charge late filing fees u/s.234E of the Act. That however, this power the Legislature was provided to the Authorities by inserting Clause (c) to Section 200A(1) of the Act w.e.f. 01.06.2015. There are plethora of cases which decided this issue that if TDS statements were filed prior to 01.06.2015 then there cannot be any levy of late fees u/s.234E. TDS statements filed after 01.06.2015 would attract the late filing fees as per Section 234E . In these instant cases before us, in some of the cases, TDS statements were filed prior to 01.06.2015 while in some other cases, they were filed after 01.06.2015. This is the position on merits. That however, CIT(Appeal)‟s in their respective orders has not dealt with the merits of these cases and has dismissed the appeals of the assessee on the ground that there is substantial delay in filing of these appeals and also for the reason that the reasonableness attributed to that delay could not be established by the assessee therein. We find that in the case of Anil Kumar Nehru Vs. ACIT 2019 (1) TMI 1075 - SC ORDER as held that even if there is substantial delay in filing of appeals it can be condoned on the ground that it involves a question of law which goes into the root of the matter. In these set of appeals before us, it pertains to a legal question whether late fees would be leviable on the assessee or not depending upon the merits involved in each case. In the interest of justice, we set aside the respective orders of the Ld. CIT(Appeal)‟s in all these cases and restore them back to their respective files to examine the matter on merits involving legal ground of Section 234E - Appeal of assessee are allowed for statistical purposes.

Summary

Issues:
Condonation of delay in filing appeals, Charging of late fees u/s.234E of the Income Tax Act, 1961, Merits of the cases regarding late fees, Legal question of late fees leviability, Setting aside orders of Ld. CIT(Appeal)s for examination on merits.

Condonation of Delay in Filing Appeals:
The Appellate Tribunal noted that some appeals were time-barred by 38 days, and the assessee filed a condonation of delay petition supported by an affidavit. After reviewing the reasons for the delay and finding them justified, the Tribunal, with no objection from the Revenue, condoned the delay and proceeded to hear the appeals on merits.

Charging of Late Fees u/s.234E of the Income Tax Act, 1961:
The cases involved intimation issued by the Assessing Officer under Section 200A of the Act, charging fees u/s.234E. The assessee argued that an amendment to Section 200A(1) introduced w.e.f. 01.06.2015 did not allow late fees for TDS statements filed before that date. The Revenue contended that the appeals were dismissed by the Ld. CIT(Appeal)s due to substantial late filing without considering the merits. The Tribunal observed that late filing fees under Section 234E could only be levied for TDS statements filed after 01.06.2015.

Merits of the Cases Regarding Late Fees:
The Tribunal found that some TDS statements were filed before 01.06.2015, while others were filed after that date. It was highlighted that the Ld. CIT(Appeal)s dismissed the appeals without addressing the merits, focusing on the substantial delay in filing. Referring to legal precedents, the Tribunal emphasized that the question of late fees leviability was a legal issue going to the root of the matter.

Legal Question of Late Fees Leviability:
Citing the decision in Anil Kumar Nehru Vs. ACIT, the Tribunal emphasized that even substantial delays in filing appeals could be condoned if they involved legal questions crucial to the case. Considering the legal ground of Section 234E of the Act, the Tribunal set aside the orders of the Ld. CIT(Appeal)s and directed them to examine the matters on merits in line with principles of natural justice.

Setting Aside Orders of Ld. CIT(Appeal)s for Examination on Merits:
In the interest of justice and following legal principles, the Tribunal allowed all the appeals for statistical purposes, setting aside the orders of the Ld. CIT(Appeal)s and remanding the cases for examination on merits regarding the legal question of late fees leviability under Section 234E of the Act.

This comprehensive analysis of the judgment addresses the issues of condonation of delay, charging of late fees u/s.234E, merits of the cases, legal question of late fees leviability, and setting aside orders for examination on merits.