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2017 (5) TMI 920 - AT - Income TaxLevy of fees under section 234E - intimation issued under section 200A in respect of processing of TDS - Held that - We find that the issue in all these appeals is now squarely covered in favour of the assessee by the decision of ITAT Amritsar Bench in the case of Sibia Healthcare Private Limited vs. DCIT 2015 (6) TMI 437 - ITAT AMRITSAR adjustment in respect of levy of fees under section 234E was indeed beyond the scope of permissible adjustments contemplated under section 200A. The impugned levy of fees under section 234E is unsustainable in law. We, therefore, delete the impugned levy of fee under section 234E of the Act. - Decided in favour of assessee.
Issues Involved:
1. Charging of late filing fees under Section 234E of the Income Tax Act, 1961. 2. Legality of intimation under Section 200A for raising a demand in respect of levy of fees under Section 234E prior to 1st June 2015. 3. Condonation of delay in filing appeals. Detailed Analysis: 1. Charging of Late Filing Fees under Section 234E of the Income Tax Act, 1961: The primary issue raised by the assessee was the confirmation of the order by the Assessing Officer (AO) which charged a late filing fee of ?23,800 under Section 234E of the IT Act, 1961. The assessee contended that the Commissioner of Income Tax (Appeals) [CIT(A)] erred in law and on facts by confirming this order without appreciating the facts of the case and without assigning any reason. The assessee argued that the intimation under Section 200A, which included the levy of fees under Section 234E, was not legal as there was no enabling provision for such a levy prior to 1st June 2015. 2. Legality of Intimation under Section 200A for Raising a Demand in Respect of Levy of Fees under Section 234E Prior to 1st June 2015: The assessee argued that the provisions of Section 234E could not be applied in the course of intimation under Section 200A prior to 1st June 2015. The Tribunal referred to the case of 'Sibia Health Care Private Ltd.' where it was held that the adjustment in respect of levy of fees under Section 234E was beyond the scope of permissible adjustments under Section 200A as it stood before 1st June 2015. Section 200A was amended by the Finance Act 2015, effective from 1st June 2015, to include the computation of fees under Section 234E during the processing of TDS statements. The Tribunal concluded that the levy of fees under Section 234E through intimation under Section 200A before 1st June 2015 was not permissible and thus unsustainable in law. 3. Condonation of Delay in Filing Appeals: There was a delay of 63 days in filing the appeals, and the assessee filed an application for condonation of delay, attributing the delay to the negligence of the advocate's staff. The Tribunal noted that no such application was filed at the time of filing the appeal and that the application lacked details on the specific reasons for the delay. Despite these shortcomings, the Tribunal, in the interest of justice and to uphold the principles of natural justice, decided to condone the delay, allowing the appeals to be heard on their merits. Conclusion: The Tribunal allowed the appeals filed by the assessee, holding that the levy of fees under Section 234E through intimation under Section 200A was not permissible for the period before 1st June 2015. The decision was based on the precedent set by the Co-ordination Bench in the case of 'Sibia Health Care Private Ltd.' and the factual position of the instant case. The Tribunal pronounced the order in the open court on 18.05.2017, allowing the appeals and providing relief to the assessee by deleting the impugned levy of fees under Section 234E.
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