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2020 (7) TMI 812 - AT - Income TaxLate fees u/s 234E - processing the statement of tax deducted at source u/s 200A of the Act before the amendment was brought in w.e.f. 01.06.2015 in the provisions of section 200A of the Act - HELD THAT - Fee u/s 234E of the Act was levied in the statements processed u/s 200A of the Act before 01.06.2015 i.e. before the amendment brought into effect from 01.06.2015 in section 200A of the Act thereby enabling the revenue authorities to raise demand in respect of levy of fees u/s 234E of the Act, Ld. CIT(A) erred in confirming the levy of late fees u/s 234E of the Act by the assessing officer. Accordingly findings of CIT(A) in all these 10 appeals are reversed as we have recently taken a considered view against the revenue on earlier orders of Ld. CIT(A) wherein the identical orders by respective CIT(A) were passed and accordingly the revenue is directed to delete the levy of fees u/s 234E - Thus, common issue raised in these bunch of appeals is decided in favour of the assessee(s).
Issues involved:
Whether the Revenue authorities were justified in levying late fees u/s 234E of the Act while processing the statement of tax deducted at source u/s 200A of the Act before the amendment brought in w.e.f. 01.06.2015 in the provisions of section 200A of the Act. Analysis: The judgment by the Appellate Tribunal ITAT Indore involved a bunch of 10 appeals by different assessees against the orders of the Commissioner of Income Tax (Appeals) of Indore. The main issue in all these appeals was whether the Revenue authorities were correct in levying late fees under section 234E of the Income Tax Act while processing the TDS statements under section 200A of the Act before the amendment introduced on 01.06.2015. The Tribunal heard all the appeals together due to the similarity of the issue for convenience and brevity. The common facts in all the appeals were that the appellants failed to file the TDS statements within the prescribed due date, leading to the imposition of late fees under section 234E of the Act by the Revenue authorities during the processing of the TDS statements under section 200A. The assessees contended that before the amendment in 2015, the Revenue authorities did not have the power to levy late fees under section 234E in the statements processed under section 200A of the Act. The Tribunal considered the arguments presented by both sides and reviewed various judicial pronouncements. It noted that a similar issue had been decided in favor of the assessee in a previous case by the Coordinate Bench, Indore. The Tribunal found that the issue was squarely covered in favor of the assessees based on previous decisions and observed that the Revenue authorities erred in confirming the levy of late fees under section 234E of the Act in the statements processed under section 200A before the 2015 amendment. Additionally, the Tribunal referenced a decision by the Co-ordinate Bench Agra in a different case, which also favored the assessee on a similar issue. The Tribunal highlighted that the enabling clause for levying late fees under section 234E was inserted in section 200A of the Act only from 01.06.2015 onwards. Therefore, the Tribunal concluded that the Revenue authorities were incorrect in confirming the late fee levied by the assessing officer and directed the Revenue to delete the levy of fees under section 234E in all the cases. Ultimately, the Tribunal allowed all 10 appeals in favor of the assessees, reversing the findings of the Commissioner of Income Tax (Appeals) and directing the deletion of the late fees imposed under section 234E of the Act in all the cases.
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