2018 (8) TMI 915 - AT - Income Tax

Levy of fee u/s 234E - Late of submission of TDS returns - all the intimations under section 200A of the Act were issued before June 1 2015 - Held that - When the intimations were issued before June 1 2015 this Tribunal is of the considered opinion that the Assessing Officer has no jurisdiction to levy fee under section 234E of the Act. - this Tribunal is of the considered opinion that before June 1 2015 the Assessing Officer cannot levy fee while issuing intimation under section 200A of the Act - Levy of fee deleted - Decided in favor of assessee.

Summary

Issues Involved:
- Delay in filing appeals and condonation of delay
- Levy of fee under section 234E of the Income-tax Act, 1961

Analysis:
1. Delay in filing appeals and condonation of delay: The appeals were filed against a common order passed by the Commissioner of Income-tax (Appeals) for the assessment years 2013-14, 2014-15, and 2015-16. The assessee had a delay of 211 days in filing the appeals, which required a petition for condonation of delay. After hearing both parties, the Appellate Tribunal found sufficient cause for the delay and decided to condone it, allowing the appeals to be admitted.

2. Levy of fee under section 234E of the Income-tax Act: The main issue in all appeals was the levy of fee under section 234E when the statement was processed under section 200A of the Act. The representative for the assessee argued that before June 1, 2015, the Assessing Officer had no authority to levy a fee while issuing intimation under section 200A. The Tribunal noted that the intimation was issued before June 1, 2015, and the amendment enabling the levy of fee under section 234E was effective only from that date. Therefore, the Tribunal held that the fee levied by the Assessing Officer under section 234E while processing the statement of tax deducted at source was beyond the scope of adjustment provided under section 200A. Consequently, the Tribunal set aside the orders of the lower authorities and deleted the fee levied under section 234E.

3. Conclusion: The Appellate Tribunal concluded that before June 1, 2015, the Assessing Officer did not have the authority to levy a fee while issuing intimation under section 200A of the Act. Therefore, the Tribunal allowed all the appeals filed by the assessee, setting aside the orders of the lower authorities and deleting the fee levied under section 234E. The judgment was pronounced on July 24, 2018, in Chennai.