2022 (11) TMI 1359 - AT - Income Tax

Levy of fees u/s. 234E - Intimation u/s 200A - period of tax deduction prior to 01.06.2015 - HELD THAT - We find that it is undisputed fact that the assessee has been charged late fee u/s. 234E for various returns filed in the Form-26Q for late filing of the statements. These cases relate to Assessment Year 2014-15. The various Hon'ble High Courts including the Hon'ble Karnataka High Court and Hon'ble Kerala High Court have held that the provisions of Section 234E are applicable w.e.f. 01.06.2015. See case of Fatheraj Singhvi Vs. Union of India 2016 (9) TMI 964 - KARNATAKA HIGH COURT as held since the impugned intimation given by the respondent-Department against all the appellants under Section 200A are so far as they are for the period prior to 1.6.2015 can be said as without any authority under law. Also see M/S. UNITED METALS 2021 (12) TMI 1349 - KERALA HIGH COURT - Decided in favour of assessee.

Summary

Issues:
1. Condonation of delay in filing appeals.
2. Levy of fees u/s. 234E of the Income Tax Act.

Detailed Analysis:
Issue 1: Condonation of delay in filing appeals
The appellant filed a petition for condonation of delay of 642 days in filing five appeals against the order of the ld. CIT(A). The delay was attributed to the illness of the advocate representing the appellant, compounded by an office assistant's mistake in misplacing the order. Additionally, the Covid-19 pandemic situation further hindered the process of filing the appeals. The appellant also cited the Supreme Court's order extending the period of limitation due to the pandemic. The delay was condoned by the ITAT, considering the reasons provided and the unintentional nature of the delay.

Issue 2: Levy of fees u/s. 234E of the Income Tax Act
The common issue in all appeals pertained to the levy of fees under section 234E of the Income Tax Act. The appellant contended that late fees under section 234E could not be charged for the period of tax deduction before 01.06.2015. The appellant relied on the decision of the ITAT Lucknow in a previous case where it was held that the late fee under section 234E is prospective. The ITAT considered various High Court decisions, including the Karnataka High Court and Kerala High Court, which held that section 234E applies from 01.06.2015 onwards. The ITAT also referred to a specific case where it was observed that the demand for late fees under section 234E prior to 01.06.2015 was without legal authority. Relying on these precedents, the ITAT allowed all appeals filed by the assessee, concluding that the late fee charged was not valid for the period before 01.06.2015.

In conclusion, the ITAT Lucknow allowed all appeals filed by the assessee, both on the grounds of condonation of delay in filing appeals and the levy of fees under section 234E of the Income Tax Act. The judgment was pronounced on 30/11/2022.