Tribunal allows appeals, sets aside late filing fees for certain assessment years.

The Tribunal allowed the appeals for Assessment Years (A.Y.) 2013-14, 2014-15, and 2015-16, setting aside the late filing fees imposed under Section 234E before 01.06.2015. The fees for A.Y. 2016-17 were upheld as they were filed after the amendment date. The demand for the earlier years was vacated, while the fees for 2016-17 remained valid. The order was pronounced on 15.11.2019.

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Issues Involved:
1. Levy of fees under Section 234E of the Income Tax Act, 1961.
2. Validity of fees levied for Assessment Years (A.Y.) 2013-14 to 2016-17.
3. Applicability of Section 200A for processing TDS returns prior to 01.06.2015.

Issue-Wise Detailed Analysis:

1. Levy of Fees under Section 234E:
The assessee company delayed filing the TDS statements for A.Y. 2013-14 to A.Y. 2016-17. Consequently, the Assistant Commissioner of Income Tax, Central Processing Cell-TDS levied late filing fees under Section 234E of the Income Tax Act, 1961. The fees were imposed for various quarters, resulting in significant penalties for the assessee.

2. Validity of Fees Levied for A.Y. 2013-14 to A.Y. 2016-17:
The assessee contested the imposition of late filing fees under Section 234E before the CIT(A), who dismissed the appeals. The assessee further appealed to the ITAT, arguing that the section enabling the levy of fees under Section 234E was incorporated into Section 200A effective from 01.06.2015. Therefore, the fees levied for A.Y. 2013-14 and A.Y. 2014-15 were argued to be invalid. The assessee supported this argument with several judicial pronouncements, including the Hon'ble High Court of Karnataka's judgment in Fatehraj Singhavi & Ors. Vs. Union of India & Ors., which stated that fees under Section 234E could not be charged for periods before 01.06.2015.

3. Applicability of Section 200A for Processing TDS Returns Prior to 01.06.2015:
The Tribunal considered the judicial precedents, including the ITAT's decisions in similar cases, which concluded that fees under Section 234E could not be levied for periods before the amendment in Section 200A effective from 01.06.2015. The Tribunal noted that the Hon'ble High Court of Karnataka and other ITAT benches had consistently held that such fees were without authority of law for periods prior to 01.06.2015.

Judgment:
The Tribunal found merit in the assessee's argument and judicial precedents. It concluded that the ACIT-TDS, CPC Ghaziabad, erred in levying fees under Section 234E for the quarters prior to 01.06.2015 for A.Y. 2013-14, 2014-15, and 2015-16. Therefore, the Tribunal set aside the CIT(A)'s order and vacated the demand raised under Section 234E for these years.

For A.Y. 2016-17, the Tribunal upheld the levy of fees under Section 234E, as the statements of TDS were filed after 01.06.2015, making the fees valid under the amended Section 200A. The assessee admitted to the delay and did not contest the fees for this year.

Result:
- Appeals for A.Y. 2013-14, 2014-15, and 2015-16 were allowed, and the fees levied under Section 234E were deleted.
- Appeal for A.Y. 2016-17 was dismissed, and the fees levied were upheld.

Order Pronounced:
The order was pronounced in the open court on 15.11.2019.

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