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2018 (6) TMI 1739 - AT - Income TaxLevy of for late filing fee under section 234E - intimation u/s 200A - Scope of amendment in section 200A - intimation given in purported exercise of power under Section 200A are in respect of fees under Section 234E for the period prior to 1.6.2015 - Diversified views - HELD THAT - We find that the alleged default pertain to financial year 2012-13 relevant to AY 2013-14. In similar circumstances, Hon ble Karnataka High court in the case of Fatheraj Singhvi 2016 (9) TMI 964 - KARNATAKA HIGH COURT has considered the issue as the view taken by the Hon ble High Court is that the amendment in section 200A of the Act with effect from 01.06.2015 is prospective and not retrospective. There is a contradictory view by the Hon ble Gujarat High Court in the case of Rajesh Kaurani Vs. Union of India 2017 (7) TMI 458 - GUJARAT HIGH COURT wherein it is held to be retrospective. In view of the above position, we are of the view that one view is in favour of assessee and another view is against the assessee. Hence, following the decision of Hon ble Supreme Court in the case of CIT vs. Vegetable Products Ltd. 1973 (1) TMI 1 - SUPREME COURT we adopt the decision in favour of the assessee. Accordingly, we are of the view that the provision of section 200A of the Act has amended with effect from 01.06.2015 is prospective and not retrospective. Hence, the late filing fee under section 234E cannot be levied in the present AY. Hence, we delete the levy of fee and allow the appeal of the assessee.
Issues Involved:
Appeal against levy of late filing fee under section 234E of the Income Tax Act, 1961. Detailed Analysis: 1. Issue: Levy of late filing fee under section 234E - The appeal was against the order of the Commissioner of Income Tax (Appeals) confirming the levy of late filing fee under section 234E of the Income Tax Act, 1961. - The assessee filed the TDS return belatedly for the fourth quarter for the assessment year 2013-14, causing a delay of 136 days. - The assessee explained that the delay was due to frequent changes in software requisites for TDS return preparation and lack of expertise in computer operations. - The Tribunal noted that the law does not differentiate between small traders and corporate entities in terms of compliance requirements. 2. Analysis of Tribunal's Decision - The Tribunal considered a similar case decided by the Hon'ble Karnataka High Court and another by the Hon'ble Gujarat High Court regarding the retrospective or prospective nature of the amendment in section 200A of the Act. - The Karnataka High Court viewed the amendment as prospective, while the Gujarat High Court held it to be retrospective. - Following the decision-making principles laid down by the Hon'ble Supreme Court in CIT vs. Vegetable Products Ltd., the Tribunal adopted the view in favor of the assessee. - Consequently, the Tribunal held that the provision of section 200A, amended with effect from 01.06.2015, was prospective and not retrospective, leading to the deletion of the late filing fee under section 234E for the relevant assessment year. 3. Conclusion - The Tribunal allowed the appeal of the assessee, ruling in favor of the assessee based on the prospective nature of the relevant amendment in section 200A of the Income Tax Act, 1961. - The late filing fee under section 234E was deemed inapplicable for the assessment year in question. - The order was pronounced in the open court on 15-06-2018, in favor of the assessee.
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