2017 (1) TMI 1044 - AT - Income Tax

Charging of fees under section 234E - intimation issued by the Assessing Officer under section 200A - Held that - Amendment to section 200A(1) of the Act is procedural in nature, then the Assessing Officer while processing the TDS statements / returns in the present set of appeals for the period prior to 01.06.2015, was not empowered to charge fees under section 234E of the Act. Accordingly, intimation issued by the Assessing Officer under section 200A of the Act in all the appeals does not stand and the demand raised by charging the fees under section 234E of the Act is not valid and the same is deleted. - Decided in favour of assessee.

Summary

Issues Involved:
1. Condonation of delay in filing appeals.
2. Levy of fees under section 234E of the Income-tax Act, 1961.
3. Authority of the Assessing Officer to charge fees under section 234E prior to the amendment effective from 01.06.2015.

Detailed Analysis:

1. Condonation of Delay in Filing Appeals:
Some appeals were filed belatedly by the assessee, specifically ITA Nos. 2029/PUN/2016 and 2032/PUN/2016, each delayed by six days. The respective assessees moved applications for condonation of delay, attributing the delay to the failure of the Accountant Clerk. The Tribunal condoned the delay and admitted the appeals for adjudication.

2. Levy of Fees under Section 234E:
The core issue was the levy of fees under section 234E of the Act for late filing of TDS returns. The Tribunal noted that section 234E, introduced by the Finance Act, 2012, imposed a fee for late furnishing of TDS statements. However, the power to levy this fee while processing TDS returns was not provided to the Assessing Officer until the amendment to section 200A(1) by the Finance Act, 2015, effective from 01.06.2015.

3. Authority of the Assessing Officer to Charge Fees under Section 234E Prior to 01.06.2015:
The Tribunal examined whether the Assessing Officer had the authority to levy fees under section 234E for TDS returns filed before 01.06.2015. It was determined that the power to levy such fees was granted only from 01.06.2015, and any levy of fees for periods before this date was beyond the scope of the Assessing Officer's authority. The Tribunal cited multiple judgments, including the decision in Maharashtra Cricket Association Vs. DCIT (CPC)-TDS, Ghaziabad, and the Karnataka High Court's ruling in Sri Fatheraj Singhvi & Ors Vs. Union of India & Ors, which supported the view that the amendment was prospective and not retrospective.

Conclusion:
The Tribunal concluded that the Assessing Officer did not have the authority to levy fees under section 234E for TDS returns filed prior to 01.06.2015. Consequently, the intimations issued under section 200A of the Act, which included such fees, were invalid. The demands raised by charging fees under section 234E were deleted, and all appeals filed by the assessee were allowed. The Tribunal emphasized that the enabling provisions for levying fees under section 234E while processing TDS returns were effective only from 01.06.2015, and any such levy before this date was not permissible.