2024 (3) TMI 149 - AT - Income Tax

Levy of fees u/s 234E - default in furnishing statement u/s 200(3) - assessment year 2013-14 to assessment 2014-15 - HELD THAT - As the regular TDS statements for various quarters anent to assessment year 2013-14 to assessment 2014-15 i.e. from Sr. No. 01 to 17 were filed admittedly after the expiry of prescribed due date of filing but before aforestated deadline of 31st May 2015. Therefore, levy of late fees u/s 234E of the Act is impermissible in the absence of enabling provision of section 200A(1)(c) of the Act. In the absence of any contrary facts or judicial precedents brought to our notice by the Revenue, we therefore direct the Ld. AO to delete the fees levied u/s 234E of the Act in its entirety. For AY 2015-16 - only dispute in this bunch was computation of late filing fees from date falling outside the aforestated deadline i.e. 31/05/2015 - The fact in this bunch of seven cases remain undisputed that, portion of delay fell anterior to cut-off date 01/06/2015 where the enabling provision for levy of late fees was absent. This provision of section 200A(1)(c) enabling the levy of fees u/s 234E of the Act came into force without retrospective operation w.e.f. 01/06/2015, therefore in our considered view the levy of late fees by no means be permitted for the period of delay falling anterior thereto. However, the levy of late fees u/s 234E of the Act for the balance portion of delay commencing from 01/06/2015 till the filing of TDS statement since exterior to former cut-off date is well within the law. We accordingly direct the Ld. AO to re-compute the late fees leviable u/s 234E of the Act for the period of delay commencing from 01/06/2015 upto the date the TDS statement is filed belatedly. Ergo the grounds stands partly allowed.

Summary

Issues Involved:
1. Authorization of levy of fees under Section 234E for default in furnishing TDS statements under Section 200(3) in the absence of enabling provision at the relevant time.
2. Effective date from which the levy of late fees is permissible under Section 234E.

Summary:

1. Authorization of Levy of Fees under Section 234E:

The assessee, an individual and proprietor of Abhijeet Engineers, failed to deliver various TDS statements within the time limit specified under Section 200(3) of the Income-tax Act, 1961. Consequently, the Assessing Officer (AO) levied late filing fees under Section 234E. The assessee challenged this levy, arguing the absence of enabling provisions at the relevant time. The Tribunal noted that while Section 234E was introduced w.e.f. 1st July 2012, the enabling provision under Section 200A(1)(c) authorizing such levy came into force only on 1st June 2015. Therefore, fees levied for defaults prior to this date are unsustainable. This position is supported by various judicial precedents, including 'Fatheraj Singhvi & Ors Vs UOI' and 'Sree Ayyappa Educational Charitable Trust & Anr. Vs. DCIT'.

2. Effective Date for Levy of Late Fees:

The Tribunal clarified that for any assessment year, the levy of fees for delayed filing of TDS statements is permissible only if the statement is filed after 31st May 2015. Statements filed before this date do not attract the provisions of Section 234E. For assessment years 2013-14 to 2014-15 (ITA Nos. 1286 to 1302/PUN/2023), the TDS statements were filed after the due date but before 31st May 2015, making the levy of fees under Section 234E impermissible. The Tribunal directed the AO to delete the fees levied in these cases.

For assessment year 2015-16 (ITA Nos. 1303 to 1309/PUN/2023), the TDS statements were filed after 31st May 2015. The Tribunal held that the levy of late fees is permissible only from 1st June 2015 onwards. The AO was directed to re-compute the late fees for the period from 1st June 2015 to the actual date of filing.

Conclusion:

- ITA Nos. 1286/PUN/2023 to 1302/PUN/2023 are allowed, and the fees levied under Section 234E are to be deleted.
- ITA Nos. 1303/PUN/2023 to 1309/PUN/2023 are allowed for statistical purposes, with directions to re-compute the late fees from 1st June 2015.

The order was pronounced in the open court on 29th February 2024.