2024 (3) TMI 718 - AT - Income Tax

Levy of late fee u/s 234E r.w.s. 200A - applying section 200A(l)(c) of the Act retrospectively - HELD THAT - As decided in own case in 2024 (3) TMI 685 - ITAT DELHI respondent had had imposed the late fee only u/s 234E of the Act for the assessment years 2012-2013, 2013-2014, 2015- 2015. Section 200A(L)(c) of the Act was not introduced during the said assessment years. In the absence of any provisions under section 200A of the Act, when they have processed the application for TDS under section 200A, no late fee can be imposed under section 234E. Hence, in such view of the matter, this Court feels that the impugned orders are liable to be set aside. - Decided in favour of assessee.

Summary

Issues Involved:
The judgment involves the challenge to the orders of the learned Commissioner of Income-tax (Appeals) by the assessee regarding the late fee levied under section 234E read with section 200A of the Income Tax Act, 1961 for the assessment years 2013-14 and 2015-16.

Late Fee Levied under Section 234E:
The Tribunal considered the sole issue of the levy of late fee under section 234E in these appeals. It was noted that the Tribunal had previously ruled in favor of the assessee in a similar case for the assessment year 2015-16. The Tribunal observed that the authorities did not have the power to impose the late fee under section 234E for the relevant assessment years prior to the introduction of section 200A(1)(c) of the Act. The Tribunal relied on the judgment of the Hon'ble High Court of Madras in a similar case to support its decision. It was emphasized that no late fee under section 234E could be imposed before 01.06.2015. The Tribunal referred to various judgments to support its conclusion and ultimately held that the late fee levied on the assessee was invalid and deserved to be deleted. Consequently, the Tribunal set aside the order of the learned CIT(A) and deleted the late fee levied under section 234E read with section 200A for the respective quarters in question.

Judgment Outcome:
In light of the above analysis and the precedent set in the assessee's own case for the assessment year 2015-16, the Tribunal allowed the appeals of the assessee by deleting the late fee levied under section 234E read with section 200A of the Income Tax Act, 1961 for the relevant quarters. The impugned order of the learned CIT(A) was set aside, and the Tribunal ruled in favor of the assessee.