2016 (3) TMI 495 - AT - Income Tax

Levy of fee under section 234E in the order u/s 200A - Held that - The adjustment in respect of levy of fees under section 234E was indeed beyond the scope of permissible adjustments contemplated under section 200A. In view of these discussions, as also bearing in mind entirety of the case, the impugned levy of fees under section 234 E is unsustainable in law. We, therefore, uphold the grievance of the assessee and delete the impugned levy of fee under section 234E of the Act. - Decided in favour of assessee

Summary

Issues:
1. Levy of late filing fee under section 234E of the Act for the 4th Quarter of AY 2014-15.
2. Interpretation of Section 234E and Section 200A of the Income-tax Act.
3. Applicability of judicial precedents in similar cases.

Analysis:
1. The appeal was against the order confirming the levy of late filing fee under section 234E of the Act for the 4th Quarter of AY 2014-15. The Tribunal referred to a similar issue in the case of Sibia Healthcare Private Ltd vs. DCIT, where it was observed that the levy of fees under section 234E was unsustainable in law. The Tribunal held that the intimation under section 200A did not enable the levy of fees under section 234E, and the time limit for such levy had already elapsed. Consequently, the Tribunal upheld the assessee's grievance and deleted the late filing fee.

2. The Tribunal analyzed Section 234E, which provides for a fee for defaults in furnishing statements. It noted the amendment in Section 200A brought by the Finance Act 2015, which allowed for the computation of fees in accordance with Section 234E post 1st June 2015. However, the Tribunal emphasized that prior to this amendment, there was no provision for raising a demand for fees under section 234E in the intimation under section 200A. The Tribunal concluded that the adjustment for levy of fees under section 234E was beyond the scope of permissible adjustments under section 200A.

3. The Tribunal considered the judicial precedents, including decisions of various High Courts, to support its interpretation of the law. It highlighted that the enabling provision for the levy of fees under section 234E in the intimation under section 200A was introduced only post 1st June 2015. Based on the legal analysis and the precedent set by the decision in the case of Sibia Healthcare Private Ltd, the Tribunal allowed the appeal and deleted the late filing fee charged under section 234E.

In conclusion, the Tribunal allowed the appeal filed by the assessee, citing the legal position that the levy of late filing fees under section 234E was unsustainable in law before the amendment brought by the Finance Act 2015. The Tribunal's decision was based on a thorough analysis of the relevant statutory provisions and judicial precedents, ultimately providing relief to the assessee in this case.