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2017 (11) TMI 323 - AT - Income TaxLate fee charged from the assessee u/s 234E - intimation issued under section 200A in respect of processing of TDS - Held that - As decided in case of Wonder Waves Entertainment Pvt Ltd 2015 (10) TMI 2477 - ITAT AHMEDABAD the issue in all these appeals is now squarely covered in favour of the assessee by the decision of ITAT Amritsar Bench in the case of Sibia Healthcare Private Limited vs. DCIT 2015 (6) TMI 437 - ITAT AMRITSAR adjustment in respect of levy of fees under section 234E was indeed beyond the scope of permissible adjustments contemplated under section 200A. As intimation under section 200A, raising a demand or directing a refund to the tax deductor, can only be passed within one year from the end of the financial year within which the related TDS statement is filed, and as the related TDS statement was filed on 19th February 2014, such a levy could only have been made at best within 31st March 2015. That time has already elapsed and the defect is thus not curable even at this stage. In view of these discussions, as also bearing in mind entirety of the case, the impugned levy of fees under section 234E is unsustainable in law. We, therefore, delete the impugned levy of fee under section 234E of the Act. - Decided in favour of assessee.
Issues:
Late filing of appeal, Confirmation of actions by Dy. Comm. of Income Tax, Charging of interest, Charging of late filing fees, Interpretation of Sections 234E and 200A. Late Filing of Appeal: The assessee filed appeals against the order of the Commissioner of Income Tax (Appeals) for Assessment Years 2013-14 and 2014-15. The appeals were summarily dismissed due to a delay in filing. The assessee argued that the delay was due to receiving the intimation electronically and not being aware of it until a later date. The ITAT found that there was a reasonable cause for the delay and held that the Commissioner was not justified in summarily dismissing the appeal. Confirmation of Actions by Dy. Comm. of Income Tax: The appeals raised issues regarding the actions of the Dy. Comm. of Income Tax, Centralized Processing Cell - TDS, Ghaziabad, U.P., including passing orders under section 200A of the Income Tax Act, 1961, without giving a show cause notice to the appellant and charging interest and late filing fees. The ITAT analyzed similar cases and found that the levy of fees under section 234E was beyond the scope of permissible adjustments under section 200A. Therefore, the ITAT allowed the appeals and deleted the late fee charged from the assessee under section 234E of the Act. Charging of Interest: The assessee raised a ground regarding the charging of interest, but the counsel for the assessee did not press this ground, leading to its dismissal as not pressed. Charging of Late Filing Fees: The ITAT examined the provisions of Sections 234E and 200A in detail and concluded that the levy of fees under section 234E was unsustainable in law. Citing previous decisions and legal provisions, the ITAT allowed the appeals and deleted the late fee charged from the assessee under section 234E of the Act. Interpretation of Sections 234E and 200A: The ITAT provided a detailed analysis of Sections 234E and 200A of the Income Tax Act, including the amendments made through the Finance Acts of 2012 and 2015. The ITAT clarified that the levy of fees under section 234E was not permissible within the scope of adjustments under section 200A. The ITAT upheld the assessee's grievance and deleted the impugned levy of fee under section 234E of the Act. In conclusion, the ITAT partly allowed all appeals filed by the assessee, deleting the late fee charged under section 234E of the Act while dismissing the ground related to charging of interest. The judgment provided a thorough analysis of the legal provisions and previous decisions to support its findings.
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