2020 (6) TMI 565 - AT - Income Tax

Late filing fee U/s 234E - Intimation U/s 154 r.w.s. 200A - delay in filing quarterly statement - HELD THAT - As regards the quarterly TDS statements for the F.Y. 2016-17, the assessee initially filed statements on 12/06/2017 and consequently the A.O. issued intimation u/s 200A of the Act on 15/06/2017 whereby the adjustment on account of late filing fee u/s 234E of the Act was made by the A.O. These facts are not in dispute in so far as the delay in filing the quarterly statements. Since the assessee has filed rectification statements on 05/04/2018, therefore, the A.O. has again issued intimation U/s 154 r.w.s. 200A - assessee has not pointed out any mistake in issuing the intimation by the A.O. on account of computation of period of delay or quantification of the late filing fee U/s 234E of the Act. As far as merits of the appeals are concerned, we do not find any substance or merits in these appeals as the delay in filing the quarterly statement is accepted by the assessee. Explanation for such delay in filing quarterly statement - Since the levy of late fee as prescribed U/s 234E of the Act is mandatory and consequential, therefore, the same cannot be deleted on the ground of reasonable cause as explained by the assessee. It is pertinent to mention that though the intimation issued U/s 200A of the Act is an appealable order, however, the said order can be challenged only on the ground that the adjustment made by the A.O. or intimation issued U/s 200A of the Act is not in accordance with the provisions of Section 234E or Section 200A of the Act. Only if the A.O. has failed to comply with the mandatory provisions of these Sections while making the adjustment and issuing the intimation, the same can be challenged in the appeal. In absence of any such allegation that the A.O. has violated any of the provisions of Section 234E or Section 200A of the Act, the adjustment made by the A.O. on account of late filing fee U/s 234E of the Act cannot be deleted. - Decided against assessee.

Summary

Issues Involved:
1. Levy of penalty under Section 234E/154 of the Income Tax Act.
2. Reasonable cause for delay in filing TDS returns.
3. Validity of the order passed by the Assessing Officer (A.O.) under Section 154.
4. Mandatory nature of late fee under Section 234E.
5. Appeal against intimation issued under Section 200A.

Detailed Analysis:

1. Levy of Penalty under Section 234E/154:
The assessee challenged the penalty levied under Section 234E of the Income Tax Act for the delay in filing TDS returns. The A.O. made adjustments on account of the fee leviable under Section 234E while issuing intimation under Section 200A for the financial years 2015-16 and 2016-17. The Commissioner of Income Tax (Appeals) [CIT(A)] sustained the levy of penalty, which was contested by the assessee.

2. Reasonable Cause for Delay in Filing TDS Returns:
The assessee argued that the delay in filing TDS returns was due to unavoidable and sufficient causes such as limited staff and the implementation of government projects like NAREGA, Swachh Bharat Mission, and PMGY. The assessee emphasized that the TDS was deducted and deposited timely, but the returns were delayed due to these genuine reasons. However, the Tribunal noted that the levy of late fee under Section 234E is mandatory and cannot be waived based on reasonable cause.

3. Validity of the Order Passed by the A.O. under Section 154:
The assessee contended that the A.O. was not justified in levying the late fee under Section 234E while issuing the intimation under Section 154. The Tribunal observed that the A.O. issued the original intimation on 23/02/2016 and a rectified intimation on 05/04/2018, both including adjustments for late fee under Section 234E. The Tribunal found no error or illegality in the A.O.'s order under Section 154.

4. Mandatory Nature of Late Fee under Section 234E:
The Tribunal highlighted that the levy of late fee under Section 234E is mandatory and consequential in nature. The A.O. has no discretion in this matter and must levy the fee if there is a delay in submitting TDS statements. The fee is computed as per the rate prescribed under Section 234E. The Tribunal emphasized that the reasons for the delay are not relevant for deleting the late fee.

5. Appeal Against Intimation Issued under Section 200A:
The Tribunal noted that an intimation issued under Section 200A is an appealable order but can only be challenged on the grounds that the A.O. did not comply with the provisions of Section 234E or Section 200A. In this case, the assessee did not allege any non-compliance by the A.O. Therefore, the Tribunal upheld the adjustments made by the A.O. for the late fee under Section 234E.

Conclusion:
The Tribunal dismissed all six appeals of the assessee, stating that the delay in filing TDS statements was acknowledged by the assessee, and the levy of late fee under Section 234E is mandatory and cannot be waived based on reasonable cause. The Tribunal found no merit in the appeals and upheld the orders of the lower authorities.