Appellate Tribunal Allows Appeals, Clarifies Late Filing Fees Rule

The Appellate Tribunal granted condonation of delay in filing appeals, finding the reasons justified. It clarified that late filing fees under Section 234E of the Income Tax Act could only be levied for TDS statements filed after 01.06.2015. Emphasizing the legal question of late fees leviability, the Tribunal set aside the orders of the Ld. CIT(Appeal)s and directed examination on merits in line with principles of natural justice. All appeals were allowed for statistical purposes, remanding the cases for further consideration.

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Issues:
Condonation of delay in filing appeals, Charging of late fees u/s.234E of the Income Tax Act, 1961, Merits of the cases regarding late fees, Legal question of late fees leviability, Setting aside orders of Ld. CIT(Appeal)s for examination on merits.

Condonation of Delay in Filing Appeals:
The Appellate Tribunal noted that some appeals were time-barred by 38 days, and the assessee filed a condonation of delay petition supported by an affidavit. After reviewing the reasons for the delay and finding them justified, the Tribunal, with no objection from the Revenue, condoned the delay and proceeded to hear the appeals on merits.

Charging of Late Fees u/s.234E of the Income Tax Act, 1961:
The cases involved intimation issued by the Assessing Officer under Section 200A of the Act, charging fees u/s.234E. The assessee argued that an amendment to Section 200A(1) introduced w.e.f. 01.06.2015 did not allow late fees for TDS statements filed before that date. The Revenue contended that the appeals were dismissed by the Ld. CIT(Appeal)s due to substantial late filing without considering the merits. The Tribunal observed that late filing fees under Section 234E could only be levied for TDS statements filed after 01.06.2015.

Merits of the Cases Regarding Late Fees:
The Tribunal found that some TDS statements were filed before 01.06.2015, while others were filed after that date. It was highlighted that the Ld. CIT(Appeal)s dismissed the appeals without addressing the merits, focusing on the substantial delay in filing. Referring to legal precedents, the Tribunal emphasized that the question of late fees leviability was a legal issue going to the root of the matter.

Legal Question of Late Fees Leviability:
Citing the decision in Anil Kumar Nehru Vs. ACIT, the Tribunal emphasized that even substantial delays in filing appeals could be condoned if they involved legal questions crucial to the case. Considering the legal ground of Section 234E of the Act, the Tribunal set aside the orders of the Ld. CIT(Appeal)s and directed them to examine the matters on merits in line with principles of natural justice.

Setting Aside Orders of Ld. CIT(Appeal)s for Examination on Merits:
In the interest of justice and following legal principles, the Tribunal allowed all the appeals for statistical purposes, setting aside the orders of the Ld. CIT(Appeal)s and remanding the cases for examination on merits regarding the legal question of late fees leviability under Section 234E of the Act.

This comprehensive analysis of the judgment addresses the issues of condonation of delay, charging of late fees u/s.234E, merits of the cases, legal question of late fees leviability, and setting aside orders for examination on merits.

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