2016 (4) TMI 1424 - AT - Income Tax

Tribunal rules in favor of assessee, deletes late filing fees under section 234E

The Tribunal allowed the appeal, ruling in favor of the assessee by deleting the late filing fees under section 234E for the relevant quarter of ... Levy of late filing fees u/s 234E - assessee submitted that late payment u/s 234E was levied prior to amendment to section 200A - HELD THAT:- As provisions accepting levy of late filing fees under section 234E have indeed been brought to the statute w.e.f. 1st June, 2015 and the impugned order was passed much before that date. As following the order of the Tribunal in the case of Dharti Associates [2015 (9) TMI 1428 - ITAT AHMEDABAD] which in turn followed the order of Sibia Healthcare P.Ltd. [2015 (6) TMI 437 - ITAT AMRITSAR] we allow appeal of the assessee and delete the levy of late fee imposed under section 234E for the quarter-2 in the F.Y. 2013-14. - Decided in favour of assessee. Issues involved:1. Delay in filing appeal against the order of the ld.CIT(A)2. Levy of late filing fees under section 234E of the Act for the quarter of A.Y.2014-15Detailed Analysis:1. Delay in filing appeal against the order of the ld.CIT(A):The appeal filed by the assessee was found to be time-barred by 82 days. The assessee explained the delay by stating that initially, the counsel advised against filing the appeal, but later, upon a favorable decision by the Amristar Bench of the Tribunal in a similar case, the appeal was filed. The Tribunal, after considering the circumstances, condoned the delay as it was due to a wrong presumption and advice, allowing the appeal to be decided on merit.2. Levy of late filing fees under section 234E of the Act for the quarter of A.Y.2014-15:The assessee contested the levy of late filing fees under section 234E, arguing that the issue was covered in their favor by a previous order of the ITAT, Ahmedabad Bench. The Tribunal referred to the Amristar Bench's decision in the case of Sibia Healthcare P. Ltd. Vs. DCIT, where it was held that the levy of fees under section 234E in the absence of enabling provisions in section 200A was unsustainable. The Tribunal noted that the amendment to section 200A, effective from June 1, 2015, allowed for the computation of fees under section 234E during the processing of TDS statements. However, as the impugned order was passed before this amendment, the levy of fees was deemed unsustainable in law. The Tribunal upheld the assessee's grievance and deleted the late filing fees under section 234E.In conclusion, the Tribunal allowed the appeal of the assessee, deleting the levy of late filing fees under section 234E for the relevant quarter. The decision was based on the interpretation of relevant legal provisions and previous judicial precedents, ultimately providing relief to the assessee in this matter.