2023 (9) TMI 675 - AT - Income Tax

Levying late fee u/sec. 234E - intimation u/s 200A - fees u/sec. 234E has been imposed for the delay in furnishing the statements for quarters prior to 01/06/2015 - HELD THAT - Sec. 200A deals with processing of statements of tax deducted at source. Clause (c) of sec. 200A(1) was inserted by Finance Act, 2015 w.e.f. 01/06/2015 providing for levy of fee u/sec. 234E - such fee u/sec. 234E can be levied only for the default committed after 01/06/2015 and not prior to that. The Hon'ble Kerala High Court in Olari Little Flower Kuries (P.) Ltd. 2022 (2) TMI 1061 - KERALAHIGH COURT has confirmed the non-imposition of fee for the period prior to 01/06/2015. Similar view has been taken in JIJI Varghese 2022 (3) TMI 1291 - KERALA HIGH COURT holding that no interest u/sec. 234E can be imposed for the period of respective assessment years prior to June 01, 2015. Thus, it is seen that issue raised in these appeals is covered in favour of the assessee.

Summary

Issues:
The judgment involves appeals regarding the charging of late fees under section 234E of the Income Tax Act, 1961 for the fourth quarter in assessment years 2013-14 and 2014-15.

Late Filing Condonation:
The Tribunal observed a significant delay in presenting the appeals, which was explained by the counsel for the assessee as beyond their control. The delay was condoned after considering the circumstances, and the cases were heard together and adjudicated on merits.

Background and Dispute:
The assessees filed TDS returns belatedly, leading to the Assessing Officer levying late fees under section 234E of the Act. After unsuccessful attempts at the National Faceless Appeal Centre, the assessees approached the Tribunal for redressal.

Legal Analysis:
The main issue in all appeals was the confirmation of fees under section 234E by the AO for delays in furnishing statements before June 1, 2015. The Tribunal noted that the provision for levying fees under section 234E was inserted by the Finance Act, 2015, effective from June 1, 2015. Citing precedents like Olari Little Flower Kuries (P.) Ltd. v. UOI & Ors. and JIJI Varghese v. ITO (TDS), the Tribunal held that the fee under section 234E could only be imposed for defaults post the specified date. Consequently, the Tribunal ruled in favor of the assessee(s) and overturned the impugned orders on this sole issue.

Decision:
As a result of the legal analysis, all the appeals filed by the assessee(s) were allowed. The order was pronounced in open court on 23rd August 2023.