2020 (7) TMI 96 - AT - Income Tax

Late filing fee u/s 234E - intimation u/s 200A - HELD THAT - This appeal is covered in favour of the assessee by the judgment of M/s.Sarala Memorial Hospital v. ITO (TDS) 2018 (12) TMI 1818 - KERALA HIGH COURT as held that fees u/s 234E could not have been computed for assessment prior to 01.06.2015. In the instant case, the assessment year being 2013- 2014, there cannot be any levy of fees u/s 234E - Decided in favour of assessee.

Summary

Issues involved:
- Justification of confirming levy u/s 234E of the I.T.Act by the CIT(A).

Detailed Analysis:
1. Issue of Levy u/s 234E: The primary issue in this case was whether the CIT(A) was justified in confirming the levy under section 234E of the Income Tax Act. The appellant had filed a quarterly return belatedly, resulting in a late filing fee being imposed by the CPC-TDS. The CIT(A) upheld the levy of the late filing fee under section 234E, stating that there was no discretion to delete the fee as per the provisions of the Act. The appellant's argument that the delay was not deliberate and should be condoned was considered but ultimately dismissed by the CIT(A).

2. Appellant's Grounds: The appellant raised multiple grounds in the appeal before the Tribunal, citing various legal precedents and judgments to support their case. They argued that the CIT(A) erred in not following the decisions of different courts and tribunals, which held that the imposition of section 234E for assessment years prior to 01.06.2015 was illegal and invalid. They also highlighted judgments emphasizing the prospective nature of certain amendments to the Income Tax Act, which affected the computation of fees under section 234E.

3. Judicial Precedents: The Tribunal analyzed the conflicting judicial opinions on the issue. It noted a judgment of the Hon'ble jurisdictional High Court, which held that fees under section 234E could not have been computed for assessments prior to 01.06.2015. This judgment was based on the interpretation of sections 200A and 234E, emphasizing that no express power existed before 01.06.2015 for such computations. However, another High Court had taken a contrary stand, stating that section 200A was a machinery provision and did not create a charge like section 234E. The Tribunal also considered a circular clarifying the amendments to section 200A and their prospective effect from 01.06.2015.

4. Tribunal's Decision: Considering the conflicting opinions and the specific judgment of the jurisdictional High Court, the Tribunal ruled in favor of the assessee. It held that for the assessment year 2013-2014, there could be no levy of fees under section 234E of the Income Tax Act. The Tribunal set aside the demand notices related to the late filing fee, aligning with the precedent set by the Hon'ble High Court. The appeal filed by the assessee was allowed, and the levy of the late filing fee was deleted.

In conclusion, the Tribunal's decision was based on a thorough analysis of legal provisions, judicial precedents, and the specific circumstances of the case, ultimately providing relief to the assessee by overturning the levy under section 234E of the Income Tax Act for the relevant assessment year.