2022 (4) TMI 161 - AT - Income Tax

Late fees u/s. 234E - Scope of enabling clause (c) was inserted in the section 200A w.e.f. 01.06.2015 - whether late filing fee u/s. 234E of the Act has rightly been charged in the intimation issued u/s. 200A/206CB of the Act while processing the TDS returns/statements as the enabling clause (c) having been inserted in the section w.e.f. 01.06.2015 - HELD THAT - We understand that earlier, there was no enabling provision in the Act u/s. 200A for raising demand in respect of levy of fee u/s. 234E. As such, as per the assessee, in respect of TDS statement filed for a period up to 31.03.2015, no late fee could be levied in the intimation issued u/s. 200A of the Act. On similar facts, the same issue has been adjudicated in the case of 'Sudershan Goyal 2018 (5) TMI 1626 - ITAT AGRA respectfully following 'Shri Fatehraj Singhvi and Ors' 2016 (9) TMI 964 - KARNATAKA HIGH COURT accept the grievance of the assessees as genuine. Accordingly, the orders of the CIT(A) are reversed and the fee so levied under section 234E of the Act is cancelled. Appeal of assessee allowed.

Summary

Issues involved:
1. Condonation of delay in filing appeals before CIT(A).
2. Imposition of late fees under section 234E of the Act.

Analysis:

Issue 1: Condonation of delay in filing appeals before CIT(A):
The appellant filed appeals before the CIT(A) with a delay of 2414 days, attributing the delay to being a semi-government school unaware of technicalities. The lower authorities did not condone the delay, leading to the dismissal of the appeals. The appellant argued that the delay should be condoned as the issue was covered in their favor by tribunal and High Court decisions. The Revenue acknowledged the issue being in favor of the appellant but insisted on dismissing the appeals due to the delay. The Tribunal referred to the Supreme Court's stance on condonation of delay, emphasizing a justice-oriented approach over technicalities. Not finding any mala fide intention behind the delay, the Tribunal decided to condone the delay and adjudicate the appeals on merit to avoid unnecessary litigation and delays in the legal system.

Issue 2: Imposition of late fees under section 234E of the Act:
The common issue in the appeals was the imposition of late fees under section 234E of the Act, with reference to an enabling clause inserted in section 200A. The CIT(A) confirmed the late fees based on a Gujarat High Court decision. The Tribunal examined the enabling provision and previous decisions, including one by a Co-ordinated bench of ITAT Agra. The Tribunal disagreed with the CIT(A)'s interpretation, citing a Kerala High Court decision favoring the appellant. Following the precedent set by the Kerala High Court, the Tribunal reversed the CIT(A)'s orders and canceled the late fees imposed under section 234E of the Act.

In conclusion, the Tribunal allowed all the appeals, emphasizing the importance of following decisions favoring the assessee when there is a difference of opinion among High Courts. The orders were pronounced in open court on 22/03/2022.