9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (5) TMI 999 - AT - Income TaxLate filing fee payable under section 234E - assessee belatedly filed its quarterly e-TDS statements in Form-26Q - HELD THAT - Late fee cannot be imposed for the statements of TDS filed before 1st June 2015. Therefore, respectfully following the decision of Fatehraj Singhavi 2016 (9) TMI 964 - KARNATAKA HIGH COURT and Eurotech Maritime Academy (P.) Ltd 2022 (2) TMI 233 - KERALA HIGH COURT no late fee can be levied under section 234E of the Act and hence the same cannot be sustained. We also find substance in the arguments of the learned Counsel for the assessee that in assessee's case statements have been filed during the financial year 2013-14 relevant to the assessment year 2014-15 in terms of the provisions of section 200A(1) of the Act and intimation can be passed only within one year from the end of the financial year of filing of statement of TDS. The aforesaid period of the assessee has expired on 31st March 2015. In the order of the learned CIT(A), levy of fee under section 234E was directed to be deleted. It was also directed that if there is limitation, the Assessing Officer is free to levy fee under section 234E of the Act. Since the limitation to pass intimation had already expired on 31st March 2015, hence no order levying fee can be passed by the Assessing Officer - we hold that the levy of fee under section 234E of the Act by the Assessing Officer while giving effect to the order of the learned CIT(A) is unjustified which is liable to be deleted. We also hold that the fee charged by the Assessing Officer and confirmed by the learned CIT(A) was not in accordance with law. Since the issue is covered by the judicial pronouncements cited supra, therefore, we set aside the impugned orders passed for the assessment year 2013-14 and 2014-15, and allow the grounds of appeal raised by the assessee allowed.
Issues Involved:
1. Limitation period for filing appeals. 2. Imposition of late filing fee under section 234E of the Income Tax Act. Detailed Analysis: 1. Limitation Period for Filing Appeals: The assessee trust filed appeals challenging the orders dated 29th September 2021 for the assessment years 2013-14 and 2014-15. The appeals were filed with a delay of 39 days. The assessee cited the Supreme Court's judgment in Miscellaneous Application No. 21 of 2022, which extended the limitation period due to the COVID-19 pandemic. According to the Supreme Court's decision, the limitation period for filing appeals that expired between 15/03/2020 and 28/02/2022 was extended by 90 days from 01/03/2022. The Tribunal accepted the explanation provided by the assessee and condoned the delay, allowing the appeals to proceed on merits. 2. Imposition of Late Filing Fee under Section 234E: The primary issue was whether the CIT(A) was justified in imposing a late filing fee under section 234E of the Income Tax Act for the assessment years 2013-14 and 2014-15. The assessee had filed its quarterly e-TDS statements belatedly, resulting in the Centralized Processing Centre (TDS) charging late filing fees of ?1,34,576 for 2013-14 and ?36,400 for 2014-15 under section 234E. The CIT(A) upheld the imposition of the late filing fee, stating that section 234E, being a charging section, was effective from 1st July 2012. The CIT(A) referenced the Gujarat High Court's decision in Rajesh Kourani vs. Union of India, which supported the levy of fees under section 234E even before the amendment to section 200A in 2015, which allowed for such fees to be included in intimation. The assessee argued that no fee under section 234E could be levied for statements filed before 1st June 2015, citing various judicial precedents, including the Karnataka High Court's decision in Fatehraj Singhavi vs. Union of India, which was followed by the CIT(A) in a previous order dated 16th July 2019. This previous order was not challenged by the Revenue. The Tribunal noted that the assessee's TDS statements for the financial years 2012-13 and 2013-14 were filed in the financial year 2013-14, well before 1st June 2015. Therefore, based on judicial precedents, the Tribunal held that late fees under section 234E could not be imposed for statements filed before this date. The Tribunal also observed that the limitation period for passing intimation under section 200A had expired on 31st March 2015, and thus, no order levying fees could be passed by the Assessing Officer after this date. The Tribunal concluded that the levy of fees under section 234E by the Assessing Officer was unjustified and liable to be deleted. Consequently, the Tribunal set aside the impugned orders for the assessment years 2013-14 and 2014-15, allowing the assessee's appeals. Conclusion: The Tribunal allowed the appeals for the assessment years 2013-14 and 2014-15, concluding that the late filing fees under section 234E could not be imposed for TDS statements filed before 1st June 2015. The Tribunal also condoned the delay in filing the appeals due to the COVID-19 pandemic, following the Supreme Court's extension of the limitation period.
|
