Tribunal cancels late filing fee for TDS return, aligns with court ruling

The Tribunal set aside the late filing fee under section 234E for delayed TDS return filing, citing the absence of authority for the AO to levy the fee for periods before 1.6.2015 and aligning with a Karnataka High Court judgment. The decision emphasized statutory provisions, directing the AO to delete the fee of Rs. 8,200 and allowing the appeal of the assessee.

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Issues:
Late filing fee under section 234E of the Income Tax Act, 1961 for delayed TDS return filing.

Analysis:
The appeal was filed against the order of the ld.CIT(A)-59, Mumbai for the assessment year 2014-15 regarding the confirmation of a late filing fee of Rs. 8,200 under section 234E for a delay of 41 days in filing the TDS return. The assessee did not appear for the hearing, leading to an ex-parte disposal of the appeal after hearing the ld.DR. The assessee received intimation for default in TDS payment and late filing penalty. The appeal before the ld.CIT(A) was dismissed, following a Bombay High Court decision stating that section 234E fee is not akin to tax and does not allow for appeal or delay condonation by the AO. The argument was made that the fee was wrongly levied, and the provisions of section 200A did not empower the officer to compute the fee for assessments before 1.6.2015.

The arguments included the insertion of section 200A for TDS statement processing and fee determination under section 234E from 1.6.2015, and the absence of authority to compute the fee for assessments before this date. A Karnataka High Court judgment supported this stance, setting aside fee demands for periods before 1.6.2015. As the relevant period fell before this date, the order directed the AO to delete the late filing fee of Rs. 8,200. The decision was based on the absence of AO power to impose the fee, aligning with the Karnataka High Court's ruling and the provisions of the law. The order allowed the appeal, setting aside the late filing fee.

In conclusion, the Tribunal set aside the late filing fee under section 234E for the delayed TDS return filing, citing the absence of authority for the AO to levy the fee for periods before 1.6.2015 and aligning with the Karnataka High Court judgment. The decision emphasized the statutory provisions and directed the AO to delete the fee of Rs. 8,200, allowing the appeal of the assessee.

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