2023 (7) TMI 16 - AT - Income Tax

Levy of late filing fees levied u/s 234E - delay in filing of TCS return as concerned chartered accountant of the assessee to the effect as his office was not properly working due to outbreak of Covid-19 pandemic - HELD THAT - A small period of delay in filing of TCS return, we are of the view that the assessee was prevented by sufficient cause for not filing the TCS return in time which was beyond the control of the assessee. Therefore, the late filing fees imposed by the AO u/s 234E of the Act is ordered to be deleted. Appeal of the assessee stands allowed.

Summary

Issues involved: Appeal against levy of late filing fees u/s 234E of the Income Tax Act.

Summary:

Issue 1: Late filing fees u/s 234E of the Act

The appeal was filed against the levy of late filing fees of Rs. 10,451/- imposed by the Assessing Officer u/s 234E of the Income Tax Act. The appellant, a businesswoman, contended that the delay in filing the TCS return was due to circumstances beyond her control, specifically citing the Covid-19 outbreak which affected the functioning of her chartered accountant's office. Despite timely submission of data, the return was filed late, leading to the imposition of fees. The appellant had already paid the TCS amount along with interest to the income tax department. The Tribunal noted the submissions and the certificate provided by the appellant's chartered accountant regarding the office's operational challenges during the pandemic period. Considering the short delay and the genuine reasons presented, the Tribunal held that the appellant was justified in not filing the TCS return on time and ordered the deletion of the late filing fees imposed by the Assessing Officer u/s 234E of the Act.

Decision: The appeal of the assessee was allowed, and the late filing fees were deleted.