2022 (5) TMI 245 - AT - Income Tax

Late filing fees under section 234E - intimation u/s 200A - HELD THAT - Sec. 200A prescribes processing of statements of tax deducted at source and Sec. 234E provides for fees for default in furnishing various statements. Further Sec. 200(3) provides for requirement to file TDS statement within prescribed time. In the case of assessee there is delay in respect of 3rd quarter of F.Y. 2015-16, the assessee filed quarterly statement on 25.07.2016 and the same was processed on 29.07.2016 and therefore, there was a delay respectively for 3rd quarter of F.Y. 2015-16. The assessee has raised objection against the validity of the order passed by the A.O and the intimation were issued after making adjustment on account of late fee u/s 234E of the Act. We are of the opinion that in Block Development Officer 2020 (6) TMI 565 - ITAT JAIPUR and in Sree Narayana Guru Smaraka Sangam Upper Primary School 2017 (1) TMI 1105 - KERALA HIGH COURT also have held that fee can be levied u/s 234E in terms of section 200A, where the date of filing of TDS statement and date of intimation are much after 1-6-2015 CIT(A) is justified in confirming the late fee levied by the AO u/s. 200 A r.w.s. 234 E since the defaults made by the assesee are after 1-6-2015. Accordingly we uphold the order of the Ld. CIT(A) and the fee levied u/s. 234 E, is directed to be confirmed. - Decided against assessee.

Summary

Issues:
Late filing fee under section 234E imposed on the assessee for TDS statements filed for the 3rd quarter of F.Y. 2015-16 - Validity of late fee imposition - Reasonable cause for delay in filing the e-TDS statement.

Analysis:
The appeal by the assessee challenged the order of the Commissioner of Income Tax (CIT) dated 27.09.2017 for the Assessment Year (AY) 2016-17. The assessee raised grounds against the imposition of late filing fee of Rs. 32,700 under section 234E for TDS statements related to the 3rd quarter of F.Y. 2015-16. The assessee contended that the late fee could not be recovered for statements due for F.Y. 2011-12 or 2012-13 if not collected at the time of delivering them to the department. The assessee argued that the delay in filing the TDS statement did not result in any revenue loss and was a venial breach, with no mala fide intention. Additionally, it was highlighted that the law did not make any person responsible for depositing late fee under section 234E.

The Assessing Officer (AO) determined a sum of Rs. 32,700 payable by the assessee for late filing fee under section 234E. The AO noted defaults related to non-payment or partial payment of tax, instructing the assessee to pay the default amount within the specified time frame. The CIT(A) upheld the late fee imposition, citing the provisions of section 200A and 234E, stating that the adjustment made under section 200A(1)(c) was valid. The assessee, dissatisfied with the CIT(A) order, appealed before the Income Tax Appellate Tribunal (ITAT).

During the ITAT proceedings, the assessee reiterated that there was a reasonable cause for the delay in filing the e-TDS statement, which was not considered by the CIT(A). The Revenue supported the CIT(A)'s decision, arguing that the late fee imposition under section 234E was mandatory and consequential, not subject to deletion based on reasonable cause. The ITAT analyzed the provisions of section 200A, 234E, and 200(3) concerning TDS statement filing requirements. Referring to previous decisions, the ITAT affirmed that late fee under section 234E could be levied in accordance with section 200A post-1-6-2015.

Based on the above considerations, the ITAT upheld the CIT(A)'s order confirming the late fee levied by the AO under section 200A read with 234E, as the defaults occurred after 1-6-2015. Consequently, the appeal of the assessee was dismissed, and the late fee under section 234E was directed to be confirmed.