2018 (9) TMI 1169 - 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:
Appeal against levy of fees under section 234E for delay in furnishing TDS statement for assessment years 2015-16 & 2016-17.

Analysis:
The Appellate Tribunal ITAT Ahmedabad heard the appeals filed by the assessee against the levy of fees under section 234E for delayed submission of TDS statements. The issue revolved around the applicability of the fees for delays prior to 1st June 2015, before an amendment in section 200A. The Tribunal referred to a Division Bench decision of ITAT Amritsar Bench, which highlighted that the levy of fees under section 234E was not permissible before the amendment. The Tribunal examined the provisions of sections 234E and 200A, emphasizing that prior to the amendment, no provision enabled the demand for fees under section 234E during the processing of TDS statements. The Tribunal concluded that the adjustment for fees under section 234E was beyond the scope of permissible adjustments under section 200A before the amendment in June 2015. Therefore, the Tribunal upheld the assessee's grievance and deleted the levy of fees under section 234E for both assessment years.

The Tribunal noted that the Departmental Representative relied on the lower authorities' orders but did not provide substantial arguments against the judicial precedent cited by the assessee. Consequently, the Tribunal ruled in favor of the assessee and deleted the late filing fees under section 234E for the relevant assessment years. The appeals of the assessee were allowed, and the impugned levy of fees was set aside. The order was pronounced in court on 17th September 2018 in Ahmedabad.