Tribunal grants appeal, directs deletion of late filing fees under Income Tax Act section 234E

The Tribunal allowed the appeals, directing the Assessing Officer to delete the late filing fees of the appellant under section 234E of the Income Tax Act. The decision was based on the legal interpretation that the levy of fees under section 234E before the amendment effective from 1st June 2015 was not permissible within the scope of section 200A. The judgment provided relief to the appellant by deleting the demand raised under section 234E, in line with the judicial precedent and legal provisions applicable at the relevant time.

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Issues:
Challenge to levy of late filing fee u/s. 234E in TDS statement beyond due date.

Analysis:
The appeals were filed against the Commissioner of Income Tax(Appeals)- IV, Surat, for the Assessment Year 2013-14, challenging the late filing fee u/s. 234E in TDS statements filed beyond the due date. The appeals contended that the levy of fees under section 234E was beyond the scope of permissible adjustments under section 200A. The judicial precedent cited by the appellant highlighted that the levy of fees under section 234E could not be effected during the intimation under section 200A, especially before 1st June 2015. The Coordinate Bench's decision emphasized that the adjustment in respect of the levy of fees under section 234E was unsustainable in law under the pre-amended provisions of section 200A. The appellant's argument was supported by various High Court decisions granting stays on demands raised under section 234E.

The Coordinate Bench's decision was crucial in determining that the levy of late filing fees under section 234E was not permissible before the amendment effective from 1st June 2015. The judgment highlighted that the intimation under section 200A, passed before the amendment, did not provide for raising demands related to section 234E fees. The appellant successfully argued that the levy of fees under section 234E was not legally sustainable before the amendment, and the impugned intimation was issued prior to the enabling provision for such levy. The judgment emphasized that the intimation under section 200A could only be passed within one year from the end of the financial year in which the related TDS statement was filed. As the related TDS statement was filed in February 2014, any levy under section 234E should have been made by March 2015, which had elapsed by the time of the impugned intimation.

In conclusion, the Tribunal allowed the appeals, directing the Assessing Officer to delete the late filing fees of the appellant under section 234E of the Income Tax Act. The decision was based on the legal interpretation that the levy of fees under section 234E before the amendment effective from 1st June 2015 was not permissible within the scope of section 200A. The judgment provided relief to the appellant by deleting the demand raised under section 234E, in line with the judicial precedent and legal provisions applicable at the relevant time.

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