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2019 (2) TMI 2074 - AT - Income TaxLate filing levy u/s 234E - intimations u/s 200A - As per assessee 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 - We find that similar issue came up for consideration in the case of M/s Terra Infra Development Ltd. 2018 (10) TMI 285 - ITAT HYDERABAD as held levy of fees u/s 234E while processing returns, TDS u/s 200A prior to 01.06.2015 was without any authority of law. Thus we hold that the late fee is not leviable in the period prior to 1.6.2015 and therefore, the issue is covered in favour of the assessee.
Issues: Appeals against late fee levied under section 234E of the I.T. Act for A.Ys 2013-14 & 2014-15, delay in filing appeals, applicability of section 200A machinery provision, condonation of delay.
Analysis: The appeals were filed challenging the late fee levied under section 234E of the I.T. Act for the assessment years 2013-14 & 2014-15. The CIT (A) had confirmed the late fee, citing that the appeals were time-barred. The grounds raised by the assessee included errors in fact and law by the CIT (A) in disposing of the appeal, rejecting reasons for condoning the appeal delay, and not adjudicating on the merit of the issue regarding the applicability of section 234E prior to 1.6.2015. The Tribunal noted that the machinery provision under section 200A became effective from 1.6.2015, and it cannot be applied to earlier assessment years. Citing a precedent, the Tribunal held that interest under section 234E cannot be levied for TDS returns filed before 1.6.2015. Consequently, the Tribunal allowed the assessee's appeals, stating that the late fee is not applicable before 1.6.2015, and the delay in filing the appeals should be condoned in favor of the assessee due to the legal issue being in their favor. In conclusion, the Tribunal found in favor of the assessee, ruling that the late fee under section 234E is not applicable for the period before 1.6.2015. The Tribunal also held that the delay in filing the appeals should be condoned, considering the legal position in favor of the assessee. As a result, the assessee's appeals were allowed, and the orders confirming the late fee were held as void. The judgment was pronounced in open court on 15th February 2019.
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