2017 (3) TMI 1831 - AT - Income Tax

Tribunal Rules Late Filing Fee u/s 234E Not Enforceable Before June 1, 2015, Due to Lack of Legal Basis.

The Tribunal allowed the appeal, directing the deletion of the late filing fee under section 234E of the Income Tax Act. It concluded that the levy of ... Levy of fee u/s. 234E in order u/s. 200A - appellant has filed TDS statement u/s. 200(3) beyond the prescribed due date - HELD THAT:- As case of Tanish Industries Pvt Ltd [2015 (11) TMI 1507 - ITAT AHMEDABAD] adjustment in respect of levy of fees under section 234E was indeed beyond the scope of permissible adjustments contemplated under section 200A. The impugned levy of fees under section 234 E is unsustainable in law. We, therefore, uphold the grievance of the assessee and delete the impugned levy of fee under section 234E of the Act. - Decided in favour of assessee. Issues:Challenge to levy of fee u/s. 234E of I.T. ActAnalysis:The appeal was against the order of the Commissioner of Income Tax(Appeals) confirming the levy of fee u/s. 234E of the Income Tax Act. The appellant challenged the late filing fee of TDS return u/s. 234E, filed beyond the prescribed due date. The TDS statement was processed by the TDS CPC, resulting in a late filing fee of Rs. 4000. The first statutory appeal before the CIT(A) was dismissed. The appellant cited relevant judicial precedents, arguing that the levy of fees under section 234E was beyond the permissible adjustments under section 200A. The Tribunal examined the legal provisions of sections 234E and 200A, emphasizing that the levy of fees under section 234E could not be made in the course of intimation under section 200A prior to June 1, 2015. The Tribunal upheld the appellant's grievance and deleted the levy of fee under section 234E, considering the legal scope and timeline constraints. The Tribunal referred to similar cases and directed the Assessing Officer to delete the late filing fee of TDS return u/s. 234E, allowing the appeal filed by the assessee.In conclusion, the Tribunal allowed the appeal, following legal precedents and statutory provisions, and directed the deletion of the late filing fee under section 234E of the Income Tax Act. The decision was based on the limited mandate of section 200A and the absence of enabling provisions for the levy of fees under section 234E before June 1, 2015. The Tribunal's analysis focused on the legality of the adjustment made under the intimation under section 200A, emphasizing the timeline constraints and the applicable legal position. The Tribunal's decision aligned with previous judicial interpretations and statutory amendments, providing relief to the appellant by deleting the levy of late filing fees under section 234E.