2018 (10) TMI 1960 - AT - Income Tax

Late fees u/s 234E read with section 200A - Whether effect of charging late fee u/s. 234E came into existence w.e.f. 01.06.2015? - HELD THAT - As on perusal of section 234E read with 200A clause (c) of the Act, we find that it specifies that fee, if any, shall be computed in accordance with the provisions of section 234E and this was effective from 1/6/2015; meaning thereby any levy of late fees u/s 234E read with section 200A of the Act can be imposed only from 1/6/2015 onwards. In the instant case of the assessee, for all three quarters i.e. quarter 1, quarter 3 and quarter 4 for assessment year 2015-16, it pertains to financial year 2014-15 i.e. before the provision for charging late fee is coming into effect. Therefore, so far as assessee s case is concerned, since it is prior to 1/6/2015, there is no question for imposition of late fees under section 234E read with section 200A - We, therefore, set aside the order of ld. CIT(A) and delete late fees levied on the assessee for each of the quarter as mentioned hereinabove for assessment year 2015-16. Appeal of assessee allowed.

Summary

Issues: Imposition of late fees under section 234E read with section 200A of the Act for quarters in assessment year 2015-16.

The judgment by the Appellate Tribunal ITAT Lucknow involved appeals by the assessee against orders of the ld. CIT(A)-4, Lucknow for quarters in assessment year 2015-16. The only grievance was the imposition of late fees under section 234E read with section 200A of the Act. The Tribunal noted that the provision for charging late fees under section 234E came into effect from 1/6/2015. The assessee, a Medical Professional, had filed quarterly TDS statements for financial year 2014-15 before this provision was effective. Therefore, the Tribunal held that no late fees could be imposed on the assessee for quarters in assessment year 2015-16. Consequently, the order of the ld. CIT(A) imposing late fees was set aside, and the late fees levied on the assessee for each quarter were deleted. The appeals of the assessee in ITA Nos. 793, 794, and 795/LKW/2017 were allowed, and the order was pronounced in the open Court on 10/10/2018.