2018 (11) TMI 697 - AT - Income Tax

Tribunal rules in favor of assessee, no late filing charges pre-June 2015. Appeals allowed.

The Tribunal allowed the appeals, holding that the assessee is not liable for late filing charges under section 234E for periods before June 2015 as the ... Late filing fees u/s 234E while issuing intimation u/s 200A - TDS returns were filed after June, 2015, even intimation was issued after June, 2015 - Held that:- Since the issue arising in the present bunch of appeals is similar to the issue before the Tribunal in the cases of Medical Superintendent Rural Hospital and Junagade Healthcare Pvt. Ltd. [2018 (10) TMI 1587 - ITAT PUNE] and we have decided both the issues in favour of assessee, we hold that the assessee is not liable for levy of late filing charges under section 234E of the Act for the period prior to June, 2015 in the absence of amendment to section 200A of the Act, which was brought on Statute from 01.06.2015. Consequently, we also hold that the appeals filed by assessee were in time since the period has to be reckoned from the date of order under section 154 of the Act and not from the date of issue of intimation under section 200A of the Act. Accordingly, we delete late filing fees levied under section 234E of the Act for the period prior to June, 2015 though the returns of income were filed after June, 2015 and even order levying late filing fees under section 234E of the Act was passed after June, 2015. The grounds of appeal raised by assessee are thus, allowed. Issues Involved:1. Levy of late fee under section 234E of the Income-tax Act, 1961 for periods prior to 01.06.2015.2. Validity of appeals filed against orders under section 154 of the Act and computation of the period for filing such appeals.Detailed Analysis:1. Levy of Late Fee Under Section 234E for Periods Prior to 01.06.2015:The primary issue in these appeals is the levy of late fee under section 234E of the Income-tax Act, 1961, for the periods prior to 01.06.2015. The assessee contends that the levy of late fee under section 234E in the intimation under section 200A is not valid for the period prior to 01.06.2015, citing binding decisions from the Jurisdictional ITAT Pune and Hon’ble High Courts.The Tribunal referenced several cases, including Medical Superintendent Rural Hospital and Junagade Healthcare Pvt. Ltd., where it was held that the amendment to section 200A(1) of the Act is procedural and prospective. The Tribunal concluded that the Assessing Officer was not empowered to levy fees under section 234E while issuing intimation under section 200A for periods prior to 01.06.2015. The Tribunal cited the Hon’ble High Court of Karnataka in Fatheraj Singhvi Vs. Union of India, which held that the amendment to section 200A w.e.f. 01.06.2015 is prospective and not retroactive. Consequently, any demand for late fee under section 234E for periods before 01.06.2015 is invalid and must be deleted.2. Validity of Appeals Filed Against Orders Under Section 154 and Computation of the Period for Filing Appeals:The second issue involves the computation of the period for filing appeals against orders under section 154 of the Act. The CIT(A) dismissed the appeals as being delayed by computing the period from the date of intimation under section 200A, instead of from the date of the order under section 154. The Tribunal found that the appeals were filed timely from the date of the order under section 154, not from the date of the intimation under section 200A. The Tribunal referenced its earlier decision in Medical Superintendent Rural Hospital, where it was held that the period for filing appeals should be computed from the date of the order under section 154.Conclusion:The Tribunal allowed the appeals, holding that:1. The assessee is not liable for the levy of late filing charges under section 234E for the period prior to June 2015, as the amendment to section 200A is prospective.2. The appeals filed by the assessee were within the prescribed period, as the computation should be from the date of the order under section 154, not from the date of the intimation under section 200A.The Tribunal deleted the late filing fees levied under section 234E and allowed all the appeals of the assessee. The order was pronounced on 6th November 2018.