2020 (10) TMI 618 - AT - Income Tax

Levying the late fees u/s 234E - statement processed u/s 200A - delay in filing the TDS quarterly returns - HELD THAT - As relying on M/S EXECUTIVE ENGINEER CO 2019 (7) TMI 1678 - ITAT INDORE assessee is eligible for relief for deletion of fee levied u/s 234E of the Act as the returns are processed before 1.6.2015. - Decided in favour of assessee.

Summary

Issues Involved:
- Justification of late fee u/s 234E by Revenue authorities for delay in filing TDS quarterly returns processed u/s 200A of the Act before 1.6.2015.

Analysis:
1. Late Fee under Section 234E:
- The appeals were against the late fees levied by the Revenue authorities under section 234E of the Act for delays in filing TDS quarterly returns processed by the Central Processing Cell (CPC) before 1.6.2015.
- The appellant contended that the late fees were unjustified as they were processed before the amendment in Finance Act, 2015, which empowered the authorities to levy fees u/s 234E only after 1.6.2015.
- The Tribunal referred to previous judgments and held that the amendment was prospective, allowing the authorities to charge late fees only for returns processed after 1.6.2015.
- Citing a similar case, the Tribunal upheld the levy of fees u/s 234E for the period after 1.6.2015 but directed the deletion of fees for delays before this date.

2. Judicial Precedents and Decision:
- The Tribunal relied on a previous case where it was established that the Revenue authorities could levy fees under section 234E only for returns processed after 1.6.2015, following the amendment in the Finance Act, 2015.
- The Tribunal emphasized that the jurisdiction to levy fees under section 234E was acquired by the authorities on 1.6.2015, allowing them to charge fees for delays occurring after this date.
- The decision clarified that while no fees could be charged for delays before 1.6.2015, any delays post this date were subject to the jurisdiction of the authorities for fee imposition.

3. Final Decision and Relief:
- Based on the established legal principles and precedents, the Tribunal allowed the appeals of the assessee, directing the deletion of late fees levied under section 234E for returns processed before 1.6.2015.
- The Tribunal confirmed that the appellant was eligible for relief as the returns were processed prior to the effective date of the amendment empowering the authorities to charge late fees under section 234E.
- The order was pronounced in favor of the assessee, providing necessary relief by allowing the appeals and directing the authorities to verify and delete any fees charged for delays before 1.6.2015.

This detailed analysis of the judgment highlights the key issues, legal arguments, judicial precedents, and the final decision rendered by the Tribunal in favor of the appellant regarding the late fee levied under section 234E of the Income Tax Act.