Tribunal cancels late filing fees in 35 appeals under Income Tax Act, citing legal provisions and precedents.

The Tribunal, guided by legal provisions and precedents, deleted the levy of late filing fees in all 35 appeals under section 234E of the Income Tax Act. The decision was based on the understanding that the levy was unsustainable in law due to the absence of enabling provisions for such adjustments during the processing of TDS statements. Consequently, all 35 appeals were allowed, providing relief to the assessees.

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Issues:
Challenging correctness of orders upholding levy of fees under section 234E of the Income Tax Act, 1961 on assessees through intimations issued under section 200A for processing of TDS for respective Assessment Years.

Detailed Analysis:

Issue 1: Levy of Late Filing Fees under Section 234E
The 35 appeals challenged the correctness of orders upholding the levy of late filing fees under section 234E during the processing of TDS returns under section 200A. The contention was that the levy was erroneous based on the facts and circumstances of the case.

Analysis: The Tribunal considered the legal position and observed that the issue was covered in favor of the assessees by a previous decision of ITAT Amritsar Bench in a specific case. The Tribunal highlighted the provisions of section 234E, which imposes a fee for defaults in furnishing statements. It was noted that the law prior to June 2015 did not enable the levy of fees under section 234E during the processing of TDS statements under section 200A.

Issue 2: Scope of Adjustments under Section 200A
The question arose whether the adjustment for the levy of fees under section 234E was within the permissible scope of adjustments under section 200A, especially considering the amendment post-June 2015.

Analysis: The Tribunal emphasized that prior to June 2015, no provision allowed for the levy of fees under section 234E during the processing of TDS statements under section 200A. It was concluded that such an adjustment was beyond the scope of permissible adjustments under section 200A as it existed at that time.

Outcome:
The Tribunal, guided by legal provisions and precedents, deleted the levy of late filing fees in all 35 appeals under section 234E of the Act. The decision was based on the understanding that the levy was unsustainable in law due to the absence of enabling provisions for such adjustments during the processing of TDS statements. Consequently, all 35 appeals were allowed, providing relief to the assessees.

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