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2018 (12) TMI 1229 - AT - Income Tax


Issues Involved:
- Whether the Revenue authorities were justified in levying late fees under section 234E of the Income Tax Act while processing the statement of tax deducted at source (TDS) under section 200A of the Act before the amendment effective from 01.06.2015.

Issue-Wise Detailed Analysis:

1. Levy of Late Fees under Section 234E:
The primary issue in all 56 appeals was whether the Revenue authorities were justified in levying late fees under section 234E of the Income Tax Act while processing the TDS statement under section 200A before the amendment effective from 01.06.2015. The appellants argued that before the amendment by the Finance Act, 2015, the Revenue authorities did not have the power to levy late fees under section 234E in the statement processed under section 200A.

2. Common Facts:
The appellants failed to file the TDS statement within the prescribed due date, leading to the imposition of late fees under section 234E. The Revenue authorities charged the late fees while processing the TDS statement under section 200A. The appellants contended that the amendment effective from 01.06.2015, which allowed for the levy of late fees under section 234E in the statement processed under section 200A, was prospective and not retrospective.

3. Tribunal's Consistent View:
The Tribunal consistently held that the amendment brought by the Finance Act, 2015, effective from 01.06.2015, in section 200A was prospective. Therefore, late fees under section 234E could not be levied in the statements processed under section 200A for the period before 01.06.2015. This view was supported by several decisions of the Coordinate Bench and the Hon'ble High Courts, including the Karnataka High Court in the case of Fatehraj Singhvi vs. UOI and the Gujarat High Court in the case of Rajesh Kaurani vs. UOI.

4. Judicial Precedents:
The Tribunal referred to multiple judicial precedents, including:
- Mentor India Limited vs. DCIT: The Tribunal followed the decision favoring the assessee, holding that the amendment in section 200A was prospective.
- Sudershan Goyal vs. DCIT (TDS): The Tribunal held that late fees under section 234E could not be levied for TDS statements processed under section 200A before 01.06.2015.
- State Bank of India, Gwalior vs. CIT(A): The Tribunal reiterated that the amendment in section 200A was prospective and not retroactive.

5. Legal Interpretation:
The Tribunal emphasized the principle of statutory interpretation that unless expressly provided, a provision is presumed to have prospective effect. This principle was upheld by the Hon'ble Supreme Court in CIT vs. Vatika Township Pvt. Ltd., which the Tribunal followed in its judgments.

6. Departmental Representative's Position:
The Departmental Representative failed to controvert the submissions made by the appellants' counsel, and the Tribunal found no merit in the Revenue's arguments.

7. Tribunal's Conclusion:
The Tribunal concluded that the CIT(A) erred in confirming the levy of late fees under section 234E for the period before the amendment effective from 01.06.2015. The Tribunal set aside the findings of the CIT(A) and allowed the appeals in favor of the assessee, canceling the levy of late fees under section 234E.

8. Final Order:
The Tribunal allowed all 56 appeals of the assessee, ruling that late fees under section 234E could not be levied for TDS statements processed under section 200A before 01.06.2015.

Pronouncement:
The order was pronounced in the open court on 13.11.2018.

 

 

 

 

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