2016 (1) TMI 164 - AT - Income Tax

Levy of fees under section 234E - Fee for default in furnishing statements - late filing of TDS returns - Held that - Revenue fairly did not dispute that the provisions accepting levy of late filing fees under section 234E have indeed been brought to the statute w.e.f. 1st June, 2015 and the impugned order was passed much before that date. Thus we hereby delete the levy of late filing fees in all these three appeals under section 234E of the Act by way of impugned intimation issued. See Lions Club of North Surat Charitable Trust Versus Income Tax Officer TDS-2, Surat (New). 2015 (9) TMI 1231 - ITAT AHMEDABAD - Decided in favour of assessee.

Summary

Issues:
Levy of late filing fees under section 234E of the Income Tax Act, 1961 for the assessment year 2013-14.

Analysis:

Issue 1: Section 234E Levy
The appeals revolved around the levy of late filing fees under section 234E of the Income Tax Act, 1961. The primary contention was whether the fees were rightly imposed before 1st June 2015. The decision cited a case where it was held that the levy of fees under section 234E was not permissible before 1st June 2015. The tribunal noted that the adjustment in respect of the levy of fees under section 234E was beyond the permissible scope of adjustments under section 200A. The intimation under section 200A did not provide for the levy of fees under section 234E before 1st June 2015. The tribunal upheld the assessee's grievance and deleted the levy of fees under section 234E.

Issue 2: Legal Precedent and Amendment
The tribunal referred to legal precedents and amendments in the Income Tax Act. It highlighted that the amendment in Section 200A, effective from 1st June 2015, allowed for the computation of fees in accordance with section 234E during the processing of TDS statements. However, it emphasized that prior to this amendment, there was no provision enabling the levy of fees under section 234E during the intimation under section 200A. The tribunal concluded that the impugned levy of fees under section 234E was unsustainable in law before the specified amendment date.

Issue 3: Decision and Relief
The tribunal, after considering the legal position and precedents, deleted the levy of late filing fees under section 234E in all appeals. It noted that the Revenue failed to provide any distinction on facts or law to support the imposition of fees before the relevant amendment date. Consequently, the tribunal allowed the appeals and ruled in favor of the assessee, providing relief by deleting the late filing fees under section 234E.

In conclusion, the tribunal's judgment focused on the legality of imposing late filing fees under section 234E before the specified amendment date, highlighting the scope of permissible adjustments under section 200A. The decision provided relief to the assessee by deleting the levy of fees based on the legal analysis and precedents presented.