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.