2018 (6) TMI 1096 - AT - Income Tax

Levy of fees under section 234E - intimation issued under section 200A in respect of processing of TDS - Held that - We find that 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. 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.

Summary

Issues involved:
Challenge to correctness of order on late filing fees under section 234E for AY 2013-14.

Analysis:
1. The assessee challenged the order passed by CIT(A) regarding late filing fees under section 234E for the assessment year 2013-14. The grievances raised by the assessee included contentions about alleged late filing of appeal, confirmation of the order passed by the Dy. Comm. of Income Tax, and charging of interest and late filing fees under section 234E. The Tribunal heard the rival contentions, reviewed the material on record, and considered the legal position.

2. The Tribunal noted that the issue in question pertained to a period before 1st June 2015, prior to an amendment in section 200A. Referring to a Division Bench decision of ITAT Amritsar Bench, the Tribunal observed that the levy of fees under section 234E was beyond the permissible adjustments under section 200A at that time. The Tribunal highlighted that the intimation under section 200A did not enable the levy of fees under section 234E, and the adjustment made was unsustainable in law. The Tribunal upheld the assessee's grievance and deleted the impugned levy of fees under section 234E.

3. The Tribunal emphasized that the intimation under section 200A, raising a demand or directing a refund, could only be passed within one year from the end of the financial year in which the related TDS statement was filed. As the time limit had elapsed in this case, the defect was not curable. The Tribunal concluded that the impugned levy of fees under section 234E was unsustainable in law, and therefore, the relief was granted to the assessee by deleting the late filing fees.

4. The Departmental Representative could not provide substantial arguments against the judicial precedent cited by the assessee. Consequently, the Tribunal, considering the entirety of the case, deleted the impugned levy of late filing fees under section 234E, granting relief to the assessee.

In conclusion, the Tribunal ruled in favor of the assessee, holding that the levy of late filing fees under section 234E for the assessment year 2013-14 was unsustainable in law and therefore deleted the impugned fees.