2019 (2) TMI 158 - AT - Income Tax

Late fee u/s 234E in intimation u/s 200A - jurisdiction of AO to levy the fees - assessee has defaulted in furnishing the TDS statement - Held that - AO has acquired the jurisdiction to levy the fees as on 1.06.2015 and therefore, any return filed and processed after 1.6.2015 will fall within his jurisdiction where on occurrence of any default on part of the assessee, he can levy fee so mandated u/s 234E of the Act. Therefore, irrespective of the period to which the quarterly return pertains, where the return is filed after 1.6.2015, the AO can levy fee under section 234E of the Act. In terms of determining the period for which fees can be levied, only saving could be that for the period of delay falling prior to 1.06.2015, there could not be any levy of fees as the assumption of jurisdiction to levy such fees have been held by the Courts to be prospective in nature. However, where the delay continues beyond 1.06.2015, the AO is well within his jurisdiction to levy fees under section 234E for the period starting 1.06.2015 to the date of actual filing of the TDS return. In light of the same, in the instant case, the levy of fees under section 234E is upheld for the period 1.06.2015 to the date of actual filing of the TDS return which is 12.09.2015 and the balance fee so levied is hereby deleted. - Decided partly in favour of assessee.

Summary

Issues:
1. Validity of penalty imposed under section 234E of the Act for delay in filing TDS return.
2. Jurisdiction of Assessing Officer to levy fees under section 234E prior to 01.06.2015.

Issue 1: Validity of penalty imposed under section 234E of the Act for delay in filing TDS return.
The appeal was filed against the order of the ld. CIT(A) confirming the penalty imposed under section 234E of the Act for the delay in filing the TDS return. The assessee argued that the penalty was contrary to the provisions of law and facts. The ld. CIT(A) upheld the penalty, stating that the adjustment made under section 200A in respect of the fee levied under section 234E was valid and in accordance with the law. The Tribunal noted the arguments presented by both sides and examined the relevant provisions. It was concluded that the penalty under section 234E was upheld for the period from 1.06.2015 to the date of actual filing of the TDS return, with the balance fee being deleted. The ground of appeal was partly allowed, and the appeal of the assessee was partly allowed.

Issue 2: Jurisdiction of Assessing Officer to levy fees under section 234E prior to 01.06.2015.
The Assessing Officer had imposed a penalty under section 234E of the Act for the delay in filing the TDS return, which was challenged by the assessee. The assessee argued that prior to the amendment in section 200A of the Act w.e.f 01.06.2015, the Assessing Officer had no authority to levy fees for the period relating to returns filed before 01.06.2015. The Tribunal referred to a previous decision where it was held that the Assessing Officer was not empowered to charge fees under section 234E of the Act for returns filed before 01.06.2015. However, in the present case, the return was filed after 1.06.2015, and the Tribunal determined that the Assessing Officer had the jurisdiction to levy fees under section 234E for the period from 1.06.2015 to the date of actual filing of the TDS return. The Tribunal upheld the levy of fees under section 234E for the specified period, while deleting the balance fee. The decision was pronounced in the Open Court on 23/01/2019.