2022 (5) TMI 625 - AT - Income Tax

Condonation of delay - Levy of late filing fee under section 234E of the Act for belated filing of TDS returns - assessee had filed appeals beyond due date for the reason that at the time of introducing section 234E by the Finance Act, 2015, there was an ambiguity and no clear directions regarding levy of late filing fee under section 234E of the Act for belated filing of TDS returns - HELD THAT - We have also gone through the orders of the Ld. Revenue Authorities as well as the order of the Coordinate Bench of the Tribunal in the case of Works Manager Govt. Central Automobile Workshop, Chennai 2020 (10) TMI 1326 - ITAT CHENNAI cited by the Ld. Counsel for the assessee. It is also noticed that the amendment made to U/s. 200A of the Act w.e.f 01/06/2015 is held to be prospective in nature and hence no late fee can be levied U/s. 234E of the Act while processing the TDS returns filed prior to 01/06/2015. Further, on perusal of the said order of the ITAT, Chennai Bench we find that under the similar set of facts and circumstances, after careful consideration, the Tribunal condoned the delay in filing appeals before the First Appellate Authority and restored the matter to the file of the Ld. CIT(A) with a direction to decide the issues on merits. We hereby condone the delay in filing the appeals before the Ld. CIT(A) and restore the matter back to the file of the Ld. CIT(A) to decide the issues involved in these appeals on merits and in accordance with law.

Summary

Issues Involved:
- Delay in filing appeals before the Tribunal
- Levy of late filing fee under section 234E of the Income Tax Act
- Condonation of delay in filing appeals
- Adjudication of cases on merits

Delay in filing appeals before the Tribunal:
The appeals were filed by the assessee against the orders of the Ld. CIT(A) for the AYs 2013-14, 2014-15 & 2015-16. The Ld. AR argued that the period of limitation for filing appeals should be excluded due to a decision of the Hon’ble Supreme Court. The delay of 157 days in filing the appeals was condoned, and the cases were heard together for convenience.

Levy of late filing fee under section 234E of the Income Tax Act:
The assessee filed TDS Quarterly returns beyond the due date, leading to the Ld. AO levying late filing fees under section 234E of the Act. The assessee contended that no late fee should be charged for returns filed before 01/06/2015. The Ld. CIT(A) dismissed the appeals, stating that the reasons for delay did not constitute "sufficient cause." The Ld. Counsel for the assessee argued that the levy of late filing fee was not in accordance with the law.

Condonation of delay in filing appeals:
The Ld. Counsel for the assessee emphasized that substantial justice should prevail over technical considerations in condoning the delay in filing appeals. Referring to a decision of the Tribunal at Chennai, the assessee argued that the delay should be condoned, and the issues should be decided on merits. The Tribunal found that the delay should be condoned and the matters restored to the file of the Ld. CIT(A) for adjudication on merits.

Adjudication of cases on merits:
After considering the arguments of both parties and reviewing relevant orders, the Tribunal decided to condone the delay in filing the appeals before the Ld. CIT(A). The matters were restored to the Ld. CIT(A) for a decision on the issues involved in the appeals in accordance with the law. Following the principles of natural justice and consistency, the Tribunal allowed all the appeals filed by the assessee for statistical purposes.

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