Tribunal Remits Case for Verification of Payment Form and Late Fee Issues u/s 234E in TDS Return Filing.

The Tribunal allowed the appeal for statistical purposes, remitting the matter to the AO for verification of the exact nature of the payment and the applicable form, either 24Q or 26Q, in the case of the assessee. The issues included the levy of late fee under Section 234E and interest for late payment of tax, with considerations given to the appellant's cash system of accounting and the technical mistake in TDS return filing. The Tribunal found that the lower authorities did not adequately consider the original quarterly TDS return and required further verification.

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Issues:
Appeal against order of CIT(A) for levy of late fee u/s 234E, Consideration of interest for late payment of tax, Applicability of cash system of accounting in TDS return filing, Dismissal of appeal by CIT(A) based on judgments, Verification of nature of payment and applicable form.

Analysis:
1. The appeal was filed against the order of CIT(A) regarding the levy of late fee under Section 234E. The appellant contended that the dismissal of the appeal was against natural justice as the late fee was imposed even though returns were filed in time and subsequently revised to correct a technical mistake. The appellant argued that the levy of late fee was not justified given the circumstances. The Tribunal observed that the lower authorities had not considered the original quarterly TDS return filed in Form 24Q and had imposed interest and late fee based on the revised return date. The matter was remitted to the AO for verification of the exact nature of the payment and the applicable form, either 24Q or 26Q, in the case of the assessee.

2. The issue of interest for late payment of tax was raised by the appellant, who followed a cash system of accounting. The appellant argued that interest should not be levied as the tax deducted at source was remitted within the specified time. The Tribunal noted the submissions but decided to remit the matter to the AO for further verification regarding the nature of the payment and the applicable form.

3. The appellant maintained that due to a technical mistake, the TDS return was initially filed in Form 24Q instead of Form 26Q, which was later rectified by filing a revised return. The appellant emphasized that the original returns were filed within the due date and should be considered as the date of filing. The appellant highlighted the challenges faced in filing E-TDS returns while following a cash system of accounting. The Tribunal acknowledged the appellant's arguments and remitted the matter for verification.

4. The dismissal of the appeal by CIT(A) was based on judgments that the appellant argued were not relevant to their case. The appellant sought relief from the levy of late fee and interest, emphasizing compliance with filing deadlines and the cash system of accounting. The Tribunal allowed the appeal for statistical purposes, remitting the matter for further verification by the AO.

In conclusion, the Tribunal allowed the appeal for statistical purposes, remitting the matter to the AO for verification of the nature of payment and the applicable form in the case of the assessee. The issues of late fee under Section 234E, interest for late payment of tax, and the challenges faced in TDS return filing due to a technical mistake and cash system of accounting were thoroughly considered in the judgment.

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