2022 (9) TMI 350 - AT - Income Tax

Levy of fee u/s 234E - intimation issued u/s 200A - assessee argued enabling clause (c) was inserted in the section 200A w.e.f. 01.06.2015 - whether late filing fee u/s 234E of the Act has rightly been charged in the intimation issued u/s 200A/206CB of the Act while processing the TDS returns/statements as the enabling clause (c) having been inserted in the section w.e.f. 01.06.2015? - HELD THAT - We understand that earlier, there was no enabling provision in the Act u/s 200A for raising demand in respect of levy of fee u/s 234E. As such, as per the assessee, in respect of TDS statement filed for a period up to 31.03.2015, no late fee could be levied in the intimation issued u/s 200A of the Act. On similar facts, the same issue has been adjudicated and addition has been deleted by the Case of Sudershan Goyal vs. DCIT 2018 (5) TMI 1626 - ITAT AGRA wherein the judgments of Shri Fatehraj Singhvi and Others 2016 (9) TMI 964 - KARNATAKA HIGH COURT , Sibia Healthcare Pvt. Ltd. 2015 (6) TMI 437 - ITAT AMRITSAR and Shri Kaur Chand Jain 2016 (9) TMI 1442 - ITAT AMRITSAR were considered. Accordingly, the order of the CIT(A) is reversed and the fee so levied under section 234E of the Act is cancelled. Decided in favour of assessee.

Summary

Issues:
Challenge to the levy of fee u/s 234E of the Income Tax Act, 1961 for Assessment Year 2013-14.

Analysis:
The appeal challenged the order of the Ld. Commissioner of Income Tax (Appeals) upholding the levy of fee u/s 234E of the Income Tax Act, 1961 for the Assessment Year 2013-14. The AO imposed late fees u/s 234E of the Act, which was confirmed by the ld. CIT(A), even though the enabling clause (c) was inserted in section 200A w.e.f. 01.06.2015. The assessee contended through written submission that the demand raised by ITO (TDS) was against the law and facts of the case, wrongly confirmed by CIT(A) without appreciating the merits. The assessee relied on various judgments to support their case.

The issue was whether the late filing fee u/s 234E of the Act was rightly charged in the intimation issued u/s 200A/206CB of the Act while processing the TDS returns/statements, considering the enabling clause (c) inserted in the section w.e.f. 01.06.2015. It was argued that no late fee could be levied for TDS statements filed up to 31.03.2015. The Tribunal noted that in a similar case, the addition had been deleted by a Co-ordinated bench, citing relevant judgments.

Based on the arguments and precedents, the Tribunal reversed the order of the CIT(A) and canceled the fee levied under section 234E of the Act. The decision was pronounced in the open court on 01.09.2022.