2019 (1) TMI 1850 - AT - Income Tax

Late fee u/s 234E in intimation u/s 200A - assessee contended that the provisions to include late fee u/s 234E in the intimation u/s 200A of the Act came into effect only through the Finance Act, 2015 w.e.f. 01/06/2015 and, hence, prior to 01/06/2015 such inclusion of late fee u/s 234E in the intimation u/s 200A is not permissible under the law - HELD THAT - In the case under consideration, on perusal of record, we find that the TDS returns filed by the assessee for the relevant period i.e., FYs 2012-13 to 2014-15 and 1st Quarter i.e. 01/04/2015 to 31/05/2015 were prior to 01/06/2015. Therefore, respectfully following the said decision of M/S. TERRA INFRA DEVELOPMENT LIMITED 2018 (10) TMI 285 - ITAT HYDERABAD we set aside the order of CIT(A) and direct the AO to delete the fees levied u/s 234E. With regard to TDS returns filed after 01/06/2015, the fees levied u/s 234E is applicable. Decided partly in favour of assessee.

Summary

Issues:
- Delay in filing appeals
- Late filing levy u/s 234E in TDS returns

Analysis:

Issue 1: Delay in filing appeals
The Appellate Tribunal ITAT Hyderabad considered the delay of 103 days in filing the appeals by the assessee. The assessee attributed the delay to heavy work in finalizing accounts, preparing audit reports, and filing income tax returns. The Tribunal, after perusing the record and the affidavit for condonation of delay, found that the assessee had sufficient reasons for the delay and thus condoned the delay, admitting the appeals for adjudication.

Issue 2: Late filing levy u/s 234E in TDS returns
The case involved TDS returns filed by the assessee for FYs 2012-13 to 2015-16, where the Assessing Officer raised demands due to late filing levy u/s 234E. The assessee contended before the CIT(A) that including late fee u/s 234E in the intimation u/s 200A was impermissible before 01/06/2015. The CIT(A), however, upheld the late filing levy u/s 234E based on a judgment of the Gujarat High Court. The assessee then appealed to the ITAT, raising various grounds. The ITAT referred to a previous decision of a coordinate bench in a similar case and held that the late filing fee u/s 234E could not be levied for TDS returns filed before 01/06/2015. Therefore, the ITAT directed the AO to delete the fees levied u/s 234E for the relevant period before 01/06/2015. For TDS returns filed after 01/06/2015, the levy of fees u/s 234E was deemed applicable. Consequently, the appeals for certain assessment years were allowed, while for one assessment year, it was partly allowed.

In conclusion, the ITAT Hyderabad allowed the appeals related to the delay in filing and the late filing levy u/s 234E in TDS returns for specific assessment years, based on the interpretation of relevant provisions and precedents cited during the proceedings.