Late Filing Fees Pre-2015 Ruled Impermissible

The Tribunal held that the imposition of late filing fees under Section 234E before 01.06.2015 was not permissible. The appeals of the assessees were allowed, and the orders of the CIT(Appeals) were set aside.

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Issues Involved:
1. Imposition of late filing fee under Section 234E of the Income Tax Act, 1961.
2. Validity of levy of late fee under Section 234E prior to 01.06.2015.
3. Jurisdiction of the Assessing Officer to levy fees under Section 234E while processing statements under Section 200A.

Detailed Analysis:

1. Imposition of Late Filing Fee under Section 234E of the Income Tax Act, 1961:
The primary grievance across all appeals is the imposition of late filing fees under Section 234E of the Income Tax Act, 1961. The assessees contended that prior to 01.06.2015, there was no provision for levying such fees. The Tribunal noted that this issue had been adjudicated in several cases, including ITA Nos. 117 to 120/RPR/2015, among others, where it was observed that the levy of fees under Section 234E was not permissible before the specified date.

2. Validity of Levy of Late Fee under Section 234E Prior to 01.06.2015:
The Tribunal referred to the case of Sibia Healthcare Private Limited Vs. DCIT, where it was held that the levy of fees under Section 234E was unsustainable in law prior to 01.06.2015. The Tribunal noted that various High Courts, including those of Kerala, Karnataka, Rajasthan, and Bombay, had stayed the demand for fees under Section 234E, questioning its constitutional validity. The Tribunal emphasized that Section 200A, as it stood before the amendment effective from 01.06.2015, did not provide for the levy of fees under Section 234E.

3. Jurisdiction of the Assessing Officer to Levy Fees under Section 234E While Processing Statements under Section 200A:
The Tribunal examined the statutory provisions of Section 200A and Section 234E. It was noted that Section 200A, before its amendment by the Finance Act 2015 (effective from 01.06.2015), did not authorize the computation and levy of fees under Section 234E during the processing of TDS statements. The Tribunal highlighted that the scope of adjustments under Section 200A was limited to arithmetical errors and incorrect claims apparent from the information in the statement. Since the levy of fees under Section 234E was not within the permissible adjustments under Section 200A before 01.06.2015, such a levy was beyond the jurisdiction of the Assessing Officer.

The Tribunal concluded that the levy of fees under Section 234E by way of intimation under Section 200A was not justified before 01.06.2015. Consequently, the Tribunal set aside the orders of the CIT(Appeals) and allowed the appeals of the assessees, quashing the impugned demands for late filing fees under Section 234E.

Conclusion:
The Tribunal, after considering the facts, statutory provisions, and judicial precedents, held that the imposition of late filing fees under Section 234E before 01.06.2015 was not permissible. The appeals of the assessees were allowed, and the orders of the CIT(Appeals) were set aside.

Order Pronounced:
The appeals were allowed, and the order was pronounced on the 31st day of January, 2019.

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