2019 (12) TMI 1324 - AT - Income Tax

Levy of late fee u/s.234E - intimation u/s 200A - Late filing of TDS returns / statement - Whether there is no power granted by the Statute at the relevant point of time to the Assessing Officer (AO) u/s.200A? - case pertaining to the quarter for the AY.2013-14 - HELD THAT - The said issue is covered in favour of assessee by the decision of the Co-ordinate Bench of ITAT, Pune Tribunal in the case of C M Farming Ltd. 2019 (11) TMI 1407 - ITAT PUNE as relying on Medical Superintendent Rural Hospital, DOBI BK 2018 (10) TMI 1587 - ITAT PUNE 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. Since the facts before us are identical to one as decided by the Co-ordinate Bench of the Tribunal, respectfully following the same, we are of the opinion that the demand of late fee is not maintainable even if the returns of the TDS were filed after 01-06-2015, the order charging late filing fee was passed after 01-06-2015. Hence, we set aside the order of Ld.CIT(A) and allow the Grounds raised by assessee.

Summary

Issues:
- Levy of late fee u/s.234E of the Income Tax Act for AY 2013-14
- Jurisdiction of Assessing Officer (AO) to levy late fee u/s.234E of the Act

Analysis:
The Appellate Tribunal, ITAT Cuttack, considered three appeals for the AY 2013-14 related to the levy of late fee under section 234E of the Income Tax Act, passed under section 200A of the Act. The tribunal noted the absence of representation for the assessee. The Revenue's representative acknowledged that the AO lacked the power to impose late fees under section 234E of the Act for the relevant period, as per the provisions of section 200A. The representative further highlighted that the amendment by the Finance Act, 2015, effective from 01-06-2015, did not empower the AO to levy late fees before the amendment, rendering such levies legally unsustainable.

The tribunal relied on a decision by the Co-ordinate Bench of ITAT, Pune Tribunal, in the case of C&M Farming Ltd. vs. ACIT, where it was established that charging late fees under section 234E of the Act was not permissible even if TDS returns were filed belatedly and the AO issued intimation under section 200A after 01-06-2015. The tribunal found merit in the arguments presented, setting aside the imposition of late fees under section 200A read with 234E of the Act. Given the identical nature of the facts in the present case to the decision of the Co-ordinate Bench, the tribunal followed the precedent, concluding that the demand for late fees was not sustainable even if the returns were filed post-01-06-2015 and the late filing fee order was issued after the said date. Consequently, the tribunal allowed all the appeals of the assessee, pronouncing the order in favor of the assessee on 4th December 2019.