2022 (9) TMI 1631 - AT - Income Tax

Late fees u/s.234E - delay in furnishing the statements for quarters prior to 01-06-2015 - HELD THAT - Section 200A deals with processing of statements of tax deducted at source. Clause (c) of section 200A(1) was inserted by the Finance Act 2015 w.e.f. 01-06-2015 providing for the levy of fee u/s.234E of the Act. In that view of the matter, such fee u/s.234E can be levied only for the default committed after 01-06-2015 and not prior to that. Olari Little Flower Kuries Pvt. Ltd. , 2022 (2) TMI 1061 - KERALAHIGH COURT has affirmed 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 fee u/s 234E can be imposed for the periods of the respective A.Ys. prior to June 1, 2015. Decided in favour of assessee.

Summary

The ITAT Pune overturned the orders of the NFAC regarding the charging of fee u/s.234E for assessment years 2013-14, 2014-15, and 2015-16. The fee can only be levied for defaults after 01-06-2015, based on the Finance Act 2015. Precedents from the Kerala High Court support this interpretation. Therefore, the appeals were allowed.