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2019 (4) TMI 1895 - AT - Income TaxFee u/s 234E - levy of fee in terms of Section 200A for delay in filing of TDS return - levy of fee in terms of Section 200A for delay in filing of TDS return - HELD THAT - Assessee has deposited the TDS deducted for the financial year 2015- 16 in time. However, for the three quarters assessee could not submit the TDS return on time. The reason stated by the assessee was that the tax consultant had not submitted the return in time. AO has levied the fees u/s.234E, whereby if a person fails to file the TDS return on or before due date prescribed, then such an adjustment can be made only in terms of Section 200A. It was only by the Finance Act, 2015, w.e.f. 01.06.2015 amendment was brought u/s.200A, wherein levy of fee u/s.234E has been prescribed. Levy of fee u/s.234E cannot be levied on such kind of default before 01.06.2015. See MEGHNA GUPTA 2018 (10) TMI 355 - ITAT DELHI - Accordingly, appeal of the assessee is allowed.
Issues:
Challenge to levy of fee under Section 200A for delay in filing TDS return for Assessment Year 2015-16. Analysis: 1. The appeal was filed against the order passed by the Commissioner of Income Tax (Appeals) regarding the levy of fee under Section 200A for delay in filing the TDS return. The Assessing Officer had issued a notice against the demand under Section 234E for the financial year 2014-15 due to a delay in filing the TDS return for three quarters, imposing a fee of ?1,84,730. 2. The CIT (A) upheld the levy of fee under Section 234E, stating that it was applicable during the relevant assessment year. The assessee cited judgments of the Rajasthan High Court and Gujarat High Court, but the counsel argued that the issue was covered by a Tribunal decision in the case of Meghna Gupta vs. ACIT, which clarified the applicability of the fee under Section 200A from June 1, 2015. 3. The Tribunal considered the submissions and found that the assessee had deposited TDS for the financial year 2015-16 on time but failed to submit the TDS return for three quarters promptly due to the tax consultant's delay. The Tribunal referred to Section 200A and the amendment brought by the Finance Act, 2015, which prescribed the levy of fee under Section 234E. The Tribunal analyzed the provisions and relevant case laws to determine the applicability of the fee. 4. Referring to the Karnataka High Court's decision in Fatheraj Singhvi v. Union of India, the Tribunal concluded that no fee was leviable under Section 234E as the assessee had promptly furnished the statement after depositing the tax without delay. Therefore, the demand under Section 234E was canceled, and the appeal of the assessee was allowed. 5. The Tribunal held that the levy of fee under Section 234E could not be imposed for defaults before June 1, 2015. Consequently, the appeal of the assessee was allowed, and the demand under Section 234E was canceled. 6. The order was pronounced in the open court on 26th April 2019, with the appeal of the assessee being allowed.
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