2020 (11) TMI 48 - AT - Income Tax

Levy fee u/s 234E - processing the TDS statement - Intimation u/s 200A - Late filing of TDS returns / statement - scope of amendment - HELD THAT - By Finance Act 2015 Clause-(c) to section 200A(1) was introduced w.e.f. 01.06.2015 empowering the authority concerned to levy fee under section 234E of the Act while processing the TDS statement under section 200A - Prior to 01.06.2015 there was no specific provision under section 200A of the Act for levy of late filing fee under section 234E. Different benches of the Tribunal consistently held that prior to 01.06.2015 provisions of section 200A of the Act did not contemplate levy of fee under section 234E of the Act. Therefore, it was held, even-though section 234E of the Act was in the statute prior to 01.06.2015, however, in absence of any enabling provision, no fee under section 234E of the Act can be levied for late filing of TDS statement for any period prior to 01.06.2015. The same view was expressed in case of Fatheraj Sanghvi Ors 2016 (9) TMI 964 - KARNATAKA HIGH COURT - In fact, in case of Emsons Exim Pvt. Ltd. 2019 (8) TMI 1461 - ITAT MUMBAI by majority view it was held that levy of fee under section 234E of the Act cannot be made in respect of a period prior to 01.06.2015 while processing the TDS statement under section 200A of the Act. Admittedly, no decision of the Hon ble Jurisdictional High Court on the disputed issue is available as on date. CIT(A) is correct in observing that there are contrary decisions from other High Courts, however, following the well-settled legal principle that in case of contrary views being expressed by different courts on a particular issue, the view favourable to the assessee has to be taken . We direct the Assessing Officer to verify the relevant facts and not to charge any fee under section 234E of the Act for any period which is prior to 01.06.2015. - Appeals of the assessee are allowed

Summary

Issues:
Delay in filing appeals, fee levied under section 234E of the Act

Delay in filing appeals:
The appeals were filed belatedly with a delay of 255 days. The assessee sought condonation of delay, attributing it to reasonable cause. After reviewing the application and affidavit, the tribunal found the delay justified and admitted the appeals for adjudication on merits.

Fee levied under section 234E of the Act:
The common issue in all appeals pertained to the fee charged under section 234E of the Act while processing TDS statements under section 200A for various quarters of Financial Year 2012-13, 2013-14, and 2014-15. The Assessing Officer imposed fees for late filing of TDS statements under section 200A. The assessee challenged this levy, citing judicial precedents to support the claim that the fee under section 234E cannot be charged for periods before 01.06.2015. Despite the submissions, the CIT(A) upheld the levy, deeming the amendment to section 200A as clarificatory.

Detailed Analysis:
The tribunal noted that section 234E, allowing a fee for late TDS statement filing, was introduced in 2012, but no corresponding amendment empowered fee levy under section 200A until 2015. Prior to 01.06.2015, section 200A did not provide for the imposition of fees under section 234E. Various tribunal benches consistently held that pre-2015, section 200A did not allow fee imposition under section 234E. The Karnataka High Court and tribunal decisions supported this stance. In the absence of a jurisdictional High Court decision, the tribunal followed the Karnataka High Court's view and directed the AO not to charge fees under section 234E for periods preceding 01.06.2015.

This comprehensive analysis of the judgment addresses the issues of delay in filing appeals and the fee levied under section 234E of the Act, providing a detailed breakdown of the tribunal's reasoning and decision-making process.