2022 (6) TMI 334 - AT - Income Tax

Late fees u/s 234E - order passed u/s 200A - HELD THAT - Assessing Officer cannot make any adjustment other than one prescribed in section 200A of the Act. Prior to 01.06.2015, there was no enabling provision in section 200A of the Act for making adjustment in respect of statement filed by the assessee with regard to tax deducted at source by levying fees u/s 234E of the Act. The Parliament for the first time enabled the Assessing Officer to make adjustment by levying fees u/s 234E of the Act with effect from 01.06.2015. The Hon ble jurisdictional High Court in the case of Olari Little Flower Kuries (P.) Ltd. 2022 (2) TMI 1061 - KERALAHIGH COURT has held that since provision of section 200A of the I.T.Act was amended to enable computation of fee payable u/s 234E of the I.T.Act at the time of processing of return and said amendment came into effect from 01.06.2015 (in view of CBDT Circular No.19 of 2015 dated 17.11.2015) intimations issued u/s 200A of the I.T.Act dealing with fee for belated filing of TDS returns for the period prior to 01.06.2015 were invalid and were to be set aside. Therefore, going by the dictum laid down by the Hon ble jurisdictional High Court judgment in the case of Olari Little Flower Kuries (P.) Ltd 2022 (2) TMI 1061 - KERALAHIGH COURT levy of late fee for the various quarters for financial years 2013-2014 and 2014-2015 cannot be sustained in order passed u/s 200A of the I.T.Act, prior to 01.06.2015. As amendment relating to section 200A of the I.T.Act is prospective with effect from 01.06.2016. In view of the above we allow the claim of the assessee.

Summary

Issues:
- Delay in filing appeals
- Levying of late fees u/s 234E of the I.T. Act
- Applicability of amendments to section 200A of the I.T. Act

Delay in filing appeals:
The appeals were filed by the assessee against four orders of the CIT(A), with a delay of 47 days. The assessee submitted a petition for condonation of delay, providing reasons for the delay. The tribunal found sufficient cause for the delay and proceeded to hear the appeals on merits.

Levying of late fees u/s 234E of the I.T. Act:
The main issue raised in all appeals was whether the CIT(A) erred in confirming the Assessing Officer's orders imposing late fees u/s 234E of the I.T. Act for delayed filing of TDS returns. The CIT(A) upheld the AO's orders based on previous judgments. However, the assessee argued that recent judicial pronouncements favored their case, citing various judgments in support.

Applicability of amendments to section 200A of the I.T. Act:
The tribunal analyzed the amendments to section 200A of the I.T. Act concerning the levy of late fees u/s 234E. It was noted that prior to 01.06.2015, there was no provision for such adjustments. The tribunal referred to the judgment of the Hon'ble Kerala High Court, which held that intimation issued u/s 200A before 01.06.2015 regarding late fees for TDS returns was invalid. The tribunal also discussed the retrospective effect of the amendments and distinguished judgments from other high courts. Ultimately, the tribunal allowed the assessee's claim, ruling in their favor.

In conclusion, the tribunal allowed the appeals filed by the assessee, emphasizing the invalidity of late fee levies before 01.06.2015 and the favorable impact of recent judicial pronouncements on the case.