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2018 (8) TMI 1550 - AT - Income TaxLevy of late fee u/s.234E - delay in filing of TDS statement - scope of section 200A r.w.s 200(3) - Held that - All the quarters i.e. Quarter 4 in the A.Y.2013-2014, for Quarters 1 to 4 in the assessment year 2014-2015 and for Quarters 1 to 4 in the assessment year 2015-2016 are coming under the purview of amendment to Section 200(3) of the Act. Therefore, the fee levied u/s.234E of the Act while processing the statement of tax deducted at source was beyond the scope provided under Section 200A of the Act. Accordingly, we respectfully follow the judicial precedent and set aside the orders of lower authorities and delete the levy of fee u/s.234E of the Act in Quarter 4 in the A.Y.2013-2014, for Quarters 1 to 4 in the assessment year 2014-2015 and for Quarters 1 to 4 in the assessment year 2015- 2016 and allow the appeals filed by the assessee. For Quarter-1 in assessment year 2016-2017 we considering the amendment to Section 200(3) of the Act and applicability to the present case of the assessee does not fall under the purview of amendment as the first quarter for the assessment year 2016-2017 ends on 30.06.2015 and the amendment is effective from 01.06.2015. Therefore, we are of the opinion that the assessee is liable to pay the late fee as levied for the assessment year 2016-2017. Accordingly, we uphold the orders of lower authorities and dismiss the ground of appeal of the assessee.
Issues:
Appeal against CIT(A) order dismissing assessee's appeal on levy of late fee u/s.234E of the Act. Analysis: The assessee appealed against the CIT(A)'s order dismissing their appeal regarding the levy of late fee u/s.234E of the Act. The delay in filing TDS statements resulted in demands raised by the AO(TDS) for late fees for various assessment years. The assessee contended that the AO erred in levying the fee u/s.234E, which was confirmed by the CIT(A). The Tribunal referred to a similar case where the levy of late fee u/s.234E was deleted, citing that the AO had no authority to levy the fee before 01.06.2015. The Tribunal followed the Karnataka High Court's order and set aside the levy of fee u/s.234E for the relevant quarters in the assessment years 2013-2014 to 2015-2016. However, for the assessment year 2016-2017, the Tribunal upheld the late fee as the amendment to Section 200(3) did not apply to that year. The Tribunal relied on the judicial precedent and held that the fee levied u/s.234E while processing TDS statements was beyond the scope provided under Section 200A of the Act for the relevant quarters. Consequently, the Tribunal set aside the orders of the lower authorities and deleted the levy of fee u/s.234E for the specified quarters in the assessment years 2013-2014 to 2015-2016. However, for the assessment year 2016-2017, the Tribunal upheld the late fee as the amendment did not apply to that year. The Tribunal's decision was based on the interpretation of the statute and the applicability of the amendment to the relevant assessment years. In conclusion, the appeals filed by the assessee for the assessment years 2013-2014 to 2015-2016 were allowed, and the levy of fee u/s.234E was deleted. For the assessment year 2016-2017, the appeal was dismissed, upholding the late fee. The Tribunal's decision was in line with the judicial precedent and the interpretation of the relevant provisions of the Act. The order was pronounced in open court on 27/08/2018.
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