Tribunal deletes late filing fees for FY 2012-13 & 2013-14 due to lack of enabling provisions

The Tribunal allowed the appeals of the assessee, directing the deletion of late filing fees levied under Section 234E for various quarters in Financial Years 2012-13 and 2013-14. The decision was based on the lack of enabling provisions in Section 200A for the levy of such fees before the amendment effective from 1st June 2015. The appeals were allowed, and the impugned levies were deleted accordingly.

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Issues Involved:

1. Legality of charging late filing fees under Section 234E of the Income Tax Act.
2. Authority to levy and extract fees under Section 234E.
3. Appeal against intimation under Section 200A of the Income Tax Act.

Detailed Analysis:

1. Legality of Charging Late Filing Fees under Section 234E:

The primary issue raised by the assessee was the imposition of late filing fees for TDS returns under Section 234E. The assessee argued that there was no provision for demanding late filing fees after the TDS return had been filed. The Tribunal referred to the case of Tanish Industries Pvt Ltd vs. DCIT, where it was held that the late filing fee under Section 234E could not be levied for periods prior to 01/06/2015. The Tribunal noted that the provisions of Section 200A, which were amended by the Finance Act 2015 effective from 1st June 2015, did not allow for the imposition of late filing fees under Section 234E before this date. Therefore, the Tribunal directed the Assessing Officer to delete the late filing fees charged in Quarter 2 of Financial Year 2012-13 amounting to Rs. 52,600/-.

2. Authority to Levy and Extract Fees under Section 234E:

The assessee contended that there was no inherent power vested in the authorities under the Income Tax Act to levy and extract fees under Section 234E in the absence of specific power conferred on them. The Tribunal agreed with this contention, referencing the decision in the case of Siddhi Vinayak Developers vs. DCIT. It was observed that prior to the amendment effective from 1st June 2015, there was no enabling provision in Section 200A for raising a demand in respect of the levy of fees under Section 234E. Therefore, any such levy was beyond the scope of permissible adjustments under Section 200A.

3. Appeal Against Intimation under Section 200A:

The Tribunal addressed the issue of whether an appeal could be filed against an intimation under Section 200A. It was concluded that an intimation under Section 200A is deemed to be an order passed under the Act and is thus appealable. The Tribunal noted that the CIT(A) had not examined the legality of the adjustment made under the intimation in light of the scope of Section 200A. The Tribunal emphasized that the adjustment in respect of the levy of fees under Section 234E was beyond the permissible adjustments under Section 200A as it stood before the amendment on 1st June 2015.

Conclusion:

The Tribunal allowed the appeals of the assessee, directing the deletion of the late filing fees levied under Section 234E for various quarters in Financial Years 2012-13 and 2013-14. The Tribunal's decision was based on the lack of enabling provisions in Section 200A for the levy of such fees prior to the amendment effective from 1st June 2015. The appeals were allowed, and the impugned levies were deleted accordingly. The order was pronounced in the Court on 1.1.2016.

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