Appeal granted due to prospective tax law change, late filing fee waived for assessee.

The Tribunal allowed the appeal, ruling in favor of the assessee based on the prospective nature of the relevant amendment in section 200A of the Income Tax Act, 1961. The late filing fee under section 234E was deemed inapplicable for the assessment year in question.

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Issues Involved:
Appeal against levy of late filing fee under section 234E of the Income Tax Act, 1961.

Detailed Analysis:

1. Issue: Levy of late filing fee under section 234E
- The appeal was against the order of the Commissioner of Income Tax (Appeals) confirming the levy of late filing fee under section 234E of the Income Tax Act, 1961.
- The assessee filed the TDS return belatedly for the fourth quarter for the assessment year 2013-14, causing a delay of 136 days.
- The assessee explained that the delay was due to frequent changes in software requisites for TDS return preparation and lack of expertise in computer operations.
- The Tribunal noted that the law does not differentiate between small traders and corporate entities in terms of compliance requirements.

2. Analysis of Tribunal's Decision
- The Tribunal considered a similar case decided by the Hon'ble Karnataka High Court and another by the Hon'ble Gujarat High Court regarding the retrospective or prospective nature of the amendment in section 200A of the Act.
- The Karnataka High Court viewed the amendment as prospective, while the Gujarat High Court held it to be retrospective.
- Following the decision-making principles laid down by the Hon'ble Supreme Court in CIT vs. Vegetable Products Ltd., the Tribunal adopted the view in favor of the assessee.
- Consequently, the Tribunal held that the provision of section 200A, amended with effect from 01.06.2015, was prospective and not retrospective, leading to the deletion of the late filing fee under section 234E for the relevant assessment year.

3. Conclusion
- The Tribunal allowed the appeal of the assessee, ruling in favor of the assessee based on the prospective nature of the relevant amendment in section 200A of the Income Tax Act, 1961.
- The late filing fee under section 234E was deemed inapplicable for the assessment year in question.
- The order was pronounced in the open court on 15-06-2018, in favor of the assessee.

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