Successful Appeals: Late Fee Cancelled, TDS Issue Referred Back.

The appeals were allowed based on the retrospective application argument and supporting case laws. The levy of late fee under section 234E was cancelled, with the issue related to short payment of TDS referred back for proper consideration. The orders of the CIT(A) were reversed, and the decision was pronounced in open court on 31/05/2018.

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Issues:
Appeal against levy of fee u/s 234E of the Income Tax Act, 1961 for AY 2013-14.

Detailed Analysis:

1. Delay in Filing Appeals:
- Delay of 24 days in filing appeals for 37 out of 88 branches due to hierarchical approval process.
- Assessee had reasonable cause for delay; delay in filing appeals condoned.

2. Common Issue of Late Filing Fee:
- Common issue in all appeals related to levy of late filing fee u/s 234E.
- Appeals disposed of by consolidated order for convenience.

3. Provisions and Contention:
- Appellants deposited TDS as per Act provisions.
- Contention: Prior to 01.06.2015, no enabling provision in Act u/s 200A for levy of late fee u/s 234E.
- Reliance on case laws supporting absence of enabling provisions for late fee levy.

4. Decision and Rationale:
- CIT(A) upheld levy of late fee u/s 234E, relying on specific case law.
- Appellants argued against retrospective application of late fee provision.
- CIT(A) decision based on machinery provision of Act; upheld levy of late fee.
- Appellants' contention supported by previous judgments; levy of late fee cancelled.

5. Judicial Precedents and Final Decision:
- Previous ITAT decision in similar case favored assessee.
- Cancellation of late fee levy based on retrospective application argument.
- Issue related to short payment of TDS referred back to CIT(A) for proper consideration.
- Orders of CIT(A) reversed; late fee levied under section 234E cancelled.

6. Conclusion:
- Appeals allowed based on retrospective application argument and supporting case laws.
- Order pronounced in open court on 31/05/2018.

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