ITAT rules against late filing fees under section 234E for Assessment Years 2013-14

The ITAT ruled in favor of the appellant, holding that the levy of fees under section 234E in the intimation issued under section 200A for Assessment Years 2013-14 was not justified. The ITAT found that the adjustment for late filing fees was beyond the permissible scope of adjustments under section 200A at the time of the orders. As there was no enabling provision for the levy of fees under section 234E in the intimation, the levy was deemed unsustainable in law. Consequently, the ITAT allowed all three appeals and deleted the late filing fees, providing relief to the appellant.

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Issues:
Challenge to levy of fees under section 234E of the Income Tax Act, 1961 through intimation issued under section 200A for Assessment Years 2013-14.

Analysis:
The appellant challenged the correctness of three separate orders upholding the levy of fees under section 234E by the ld. CIT(A) through intimation issued under section 200A for the Assessment Years 2013-14. The appellant contended that the levy of late filing fees in the processing of TDS return was erroneous. Despite raising 16 grounds of appeal, the primary grievance was against the levy of fees. The issue was whether the levy of fees under section 234E was justified in the intimation issued under section 200A.

The ITAT Ahmedabad referred to a decision by ITAT Amritsar Bench in a similar case, where it was observed that the levy of fees under section 234E could not be made in the course of an intimation under section 200A. The relevant statutory provisions of sections 234E and 200A were discussed to understand the legal framework. The amendment in section 200A brought by the Finance Act 2015 was highlighted, which allowed for the computation of fees under section 234E in the processing of TDS statements post 1st June 2015. However, the impugned orders were passed before this amendment.

The ITAT concluded that the adjustment in respect of levy of fees under section 234E was beyond the scope of permissible adjustments under section 200A as it existed at that time. The intimation under section 200A was deemed appealable, and the CIT(A) should have examined the legality of the adjustment in light of the scope of section 200A. Since no enabling provision existed for the levy of fees under section 234E in the intimation, the levy was deemed unsustainable in law. The ITAT upheld the appellant's grievance and deleted the levy of fees under section 234E.

In view of the legal precedent and the absence of enabling provisions for the levy of fees under section 234E in the impugned intimation, the ITAT allowed all three appeals and deleted the levy of late filing fees. The judgment was pronounced on 3rd September 2015, providing relief to the appellant in all three cases.

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