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2020 (10) TMI 133 - AT - Income TaxLate filing fee u/s 234E - intimation u/s 200A - Late filing of TDS returns / statement - HELD THAT - As held in SRI. FATHERAJ SINGHVI 2016 (9) TMI 964 - KARNATAKA HIGH COURT that when the statute confers no express power under section 200A before 01.06.2015 on the authority either to compute and collect any fee under section 234E, the demand for the period before 01.06.2015 could not be sustained. The present appeals of the Assessee relate to TDS returns filed prior to 1.6.2015. The decision of the Hon ble Karnataka High Court in the case of Fateeraj Singhvi (supra) was rendered on 26.8.2016. It has been held in the case of MSV IT Solutions Ltd. 2018 (10) TMI 1774 - ITAT HYDERABAD wherein on identical facts noticing that there was no legal remedy prior to 1.6.2015 against an intimation u/s.200A of the Act, the Hyderabad Bench condoned delay in filing appeal before CIT(A). Interest of justice would be met if the delay in filing appeals by the Assessee before CIT(A) is condoned and the issue with regard to levy of interest u/s.234-E of the Act be remanded to the CIT(A) for fresh consideration - Appeals of assessee allowed for statistical purpose.
Issues:
Appeal against CIT(A) orders relating to late fee under section 234E of the Income-Tax Act for delayed filing of TDS statements for assessment years 2013-14 to 2016-17. Analysis: The Appellate Tribunal heard 19 appeals filed by the Assessee against CIT(A) orders dated 30.10.2019 concerning the late fee levied under section 234E of the Income-Tax Act for delayed filing of TDS statements. The Assessee's TDS statements for FY 2012-13 to 2015-16 were processed with a delay, resulting in the imposition of late fees under section 234E. The Assessee contended that the provisions of section 234E were inserted by the Finance Act, 2012, and argued that the authority could not levy the fee for statements filed before 1.6.2015, citing a Karnataka High Court decision. The CIT(A) found the appeals belated, with the Assessee seeking condonation due to financial strain and lack of clarity on the levy. The CIT(A) dismissed most appeals for delay, except for AYs 2015-16 & 2016-17, where the late filing was also noted. The CIT(A) upheld the fee for these years, claiming the law amendment post-1.6.2015 validated the levy, contrary to the Karnataka High Court decision. The Tribunal noted the legal issue regarding the levy of interest under section 234E for TDS returns filed before 1.6.2015, as per the Karnataka High Court decision. Referring to a Hyderabad Bench ruling, the Tribunal emphasized the need for substantive justice over technicalities. Considering the circumstances, the Tribunal allowed the Assessee's appeals for statistical purposes, condoning the delay and remanding the interest levy issue back to the CIT(A) for fresh consideration in line with the observations made. The Tribunal's decision aimed to ensure justice and fairness in the matter, acknowledging the legal complexities involved. In conclusion, the Appellate Tribunal ITAT BANGALORE dealt with the Assessee's appeals against CIT(A) orders on late fee under section 234E for delayed TDS statements. The Tribunal recognized the legal nuances and precedents, emphasizing the importance of substantive justice. By allowing the appeals for statistical purposes and remanding the interest levy issue, the Tribunal sought to address the Assessee's concerns while upholding the principles of fairness and legal interpretation in tax matters.
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