Tribunal Overturns Late Fee and Interest for Pre-2015 TDS Filing Delays, Citing Inapplicability of Section 234E.

The assessee failed to file the quarterly returns of TDS within the prescribed time for the period Q3 of FY 2012-2013. Consequently, the Deputy Director of Income Tax, Centralized Processing Cell-TDS, imposed a late fee u/s 234E and computed interest u/s 220(2). The CIT(A) upheld the action, stating that payment of late fees for late filing of TDS is mandatory as per statutory provisions inserted by the Finance Act, 2012. However, the Tribunal, relying on a coordinate bench decision, held that no late fee u/s 234E can be imposed for periods prior to June 1, 2015. Since the late fee was levied for a period before June 1, 2015, the Tribunal directed the AO/CPC-TDS to delete the late fee u/s 234E and the consequential interest u/s 220(2), allowing the assessee's appeal. .....

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