2017 (5) TMI 1355 - AT - Income Tax

Levy of fee u/s. 234E in order u/s.200A - appellant has filed TDS statement u/s. 200(3) beyond the prescribed due date - 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. 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. - See case of Tanish Industries Pvt Ltd 2015 (11) TMI 1507 - ITAT AHMEDABAD .- Decided in favour of assessee

Summary

Issues involved:
Challenge against levy of fee u/s. 234E of I.T. Act for late filing of TDS statement beyond due date.

Analysis:

Issue 1: Challenge against levy of fee u/s. 234E
The appellant challenged the imposition of late filing fees u/s. 234E for filing TDS statement beyond the prescribed due date. The ITAT examined the legal provisions of sections 234E and 200A of the Income Tax Act. The ITAT referred to various judicial precedents and highlighted that prior to June 1, 2015, there was no provision enabling the levy of fees under section 234E during the processing of TDS statements under section 200A. The ITAT emphasized that the adjustment for the levy of fees under section 234E was beyond the scope of permissible adjustments under section 200A before the amendment effective June 1, 2015. The ITAT concluded that the levy of fees under section 234E was unsustainable in law before the said amendment. Consequently, the ITAT deleted the late filing fees imposed under section 234E, granting relief to the appellant.

Issue 2: Judicial Precedents and Legal Interpretation
The ITAT extensively discussed various judicial precedents and legal provisions related to the levy of fees under section 234E. The ITAT referred to decisions of different High Courts and the interpretation of relevant sections of the Income Tax Act. The ITAT emphasized that the absence of an enabling provision for the levy of fees under section 234E before June 1, 2015, meant that such a levy during the processing of TDS statements was not legally permissible. The ITAT relied on the legal framework and judicial interpretations to support its decision to delete the late filing fees imposed on the appellant.

Issue 3: Decision and Relief Granted
Based on the legal analysis and interpretation of relevant provisions, the ITAT allowed the appeals filed by the assessee and directed the Assessing Officer to delete the late filing fees imposed under section 234E of the Income Tax Act. The ITAT upheld the decision to grant relief to the appellant in line with the legal precedents and the interpretation of the applicable sections of the Income Tax Act. The ITAT set aside the order of the CIT(A) and provided a favorable decision to the appellant.

In conclusion, the ITAT's judgment focused on the legal framework, judicial precedents, and the interpretation of relevant sections of the Income Tax Act to grant relief to the appellant by deleting the late filing fees imposed under section 234E. The decision was based on the absence of an enabling provision for such levy before June 1, 2015, during the processing of TDS statements under section 200A.