Appellate Tribunal rules late fees invalid for 2015-16 assessment year

The Appellate Tribunal held that late fees could not be imposed on the assessee for quarters in assessment year 2015-16 under section 234E as the provision came into effect after the assessee had filed quarterly TDS statements for the relevant financial year. The Tribunal set aside the order imposing late fees and deleted the late fees levied on the assessee for each quarter. The appeals of the assessee were allowed, and the order was pronounced on 10/10/2018.

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Issues: Imposition of late fees under section 234E read with section 200A of the Act for quarters in assessment year 2015-16.

The judgment by the Appellate Tribunal ITAT Lucknow involved appeals by the assessee against orders of the ld. CIT(A)-4, Lucknow for quarters in assessment year 2015-16. The only grievance was the imposition of late fees under section 234E read with section 200A of the Act. The Tribunal noted that the provision for charging late fees under section 234E came into effect from 1/6/2015. The assessee, a Medical Professional, had filed quarterly TDS statements for financial year 2014-15 before this provision was effective. Therefore, the Tribunal held that no late fees could be imposed on the assessee for quarters in assessment year 2015-16. Consequently, the order of the ld. CIT(A) imposing late fees was set aside, and the late fees levied on the assessee for each quarter were deleted. The appeals of the assessee in ITA Nos. 793, 794, and 795/LKW/2017 were allowed, and the order was pronounced in the open Court on 10/10/2018.

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