2017 (5) TMI 913 - AT - Income Tax

Levy of fees under section 234E in intimation issued under section 200A(1) - scope of amendment to section 200A(1) - Held that - Prior to 1.6.2015 late fee u/s 234E cannot be charged while processing quarterly return u/s 200A of the Act. See Asian Pipes & Profiles Pvt. Ltd. Vs. Assessing Officer, TDS 2017 (3) TMI 1482 - ITAT MUMBAI We delete the late fee levied u/s 234E of the Act while passing intimation u/s 200A of the Act for the 4th quarter of the financial year 2012-13 where admittedly the intimation was passed on 24.12.2013 which is prior to 1.6.2015 in these cases. - Decided in favour of assessee.

Summary

Issues:
- Challenge against levy of late fee u/s 234E for delay in filing quarterly TDS statement.
- Interpretation of section 200A of the Income Tax Act before and after amendment by Finance Act, 2015.
- Applicability of late fee u/s 234E prior to 1.6.2015.
- Prospective nature of the amendment to section 200A(1) of the Act.
- Validity of late fee charged under section 234E before 1.6.2015.

Analysis:
1. Challenge against Late Fee u/s 234E:
- The appeals were filed challenging the levy of late fee u/s 234E for delay in filing the quarterly TDS statement. The delay of 15 days in filing the appeals was condoned, and the appeals were admitted for hearing.

2. Interpretation of Section 200A:
- The issue revolved around the interpretation of section 200A of the Income Tax Act before and after the amendment by the Finance Act, 2015. The Coordinate Bench of the Pune Tribunal analyzed various case laws and held that prior to 1.6.2015, the Assessing Officer was not empowered to charge late fee u/s 234E while processing TDS returns.

3. Applicability of Late Fee u/s 234E:
- The Tribunal held that the Assessing Officer was not empowered to charge fees under section 234E while processing TDS returns filed by the deductor before 1.6.2015. The amendment to section 200A(1) of the Act was considered prospective in nature, and the late fee charged before the amendment was deemed invalid.

4. Prospective Nature of Amendment:
- The Tribunal clarified that the amendment to section 200A(1) of the Act, enabling the Assessing Officer to charge fees under section 234E, was prospective and not applicable to pending assessments before 1.6.2015. The amendment aimed to empower the Assessing Officer to levy fees under section 234E post its introduction.

5. Validity of Late Fee Charged:
- The Tribunal emphasized that the late fee charged under section 234E before 1.6.2015, while processing TDS returns, was not valid. Citing judgments from various High Courts and the Supreme Court, the Tribunal concluded that the Assessing Officer lacked the authority to levy such fees before the statutory amendment.

6. Final Decision:
- Following the precedents set by the Pune Bench and Mumbai Bench, the late fee levied under section 234E was deleted for the appeals related to the 4th quarter of the financial year 2012-13. The appeals of the Assessees were allowed, and the late fee charged under section 234E was deemed invalid.

This detailed analysis highlights the key legal issues addressed in the judgment, focusing on the interpretation of relevant provisions of the Income Tax Act and the retrospective or prospective application of statutory amendments.