Appeals allowed for assessment years 2013-2015, late fee deleted; 2016 upheld. Tribunal cites precedent.

The Tribunal allowed the appeals for the assessment years 2013-2014 to 2015-2016, deleting the levy of late fee under Section 234E. However, for the assessment year 2016-2017, the appeal was dismissed, upholding the late fee. The Tribunal's decision was based on judicial precedent and the interpretation of the relevant provisions of the Act, aligning with the Karnataka High Court's ruling. The order was pronounced on 27/08/2018.

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Issues:
Appeal against CIT(A) order dismissing assessee's appeal on levy of late fee u/s.234E of the Act.

Analysis:
The assessee appealed against the CIT(A)'s order dismissing their appeal regarding the levy of late fee u/s.234E of the Act. The delay in filing TDS statements resulted in demands raised by the AO(TDS) for late fees for various assessment years. The assessee contended that the AO erred in levying the fee u/s.234E, which was confirmed by the CIT(A). The Tribunal referred to a similar case where the levy of late fee u/s.234E was deleted, citing that the AO had no authority to levy the fee before 01.06.2015. The Tribunal followed the Karnataka High Court's order and set aside the levy of fee u/s.234E for the relevant quarters in the assessment years 2013-2014 to 2015-2016. However, for the assessment year 2016-2017, the Tribunal upheld the late fee as the amendment to Section 200(3) did not apply to that year.

The Tribunal relied on the judicial precedent and held that the fee levied u/s.234E while processing TDS statements was beyond the scope provided under Section 200A of the Act for the relevant quarters. Consequently, the Tribunal set aside the orders of the lower authorities and deleted the levy of fee u/s.234E for the specified quarters in the assessment years 2013-2014 to 2015-2016. However, for the assessment year 2016-2017, the Tribunal upheld the late fee as the amendment did not apply to that year. The Tribunal's decision was based on the interpretation of the statute and the applicability of the amendment to the relevant assessment years.

In conclusion, the appeals filed by the assessee for the assessment years 2013-2014 to 2015-2016 were allowed, and the levy of fee u/s.234E was deleted. For the assessment year 2016-2017, the appeal was dismissed, upholding the late fee. The Tribunal's decision was in line with the judicial precedent and the interpretation of the relevant provisions of the Act. The order was pronounced in open court on 27/08/2018.

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