Tribunal rules on penalties for delayed TDS return filing

The Tribunal partially allowed the appeal in the case concerning the validity of penalties under section 234E of the Act for delayed TDS return filing. The penalty was upheld for the period from 1.06.2015 to the actual filing date, with the excess fee being removed. Regarding the jurisdiction issue, the Tribunal ruled that the Assessing Officer could levy fees under section 234E from 1.06.2015 onwards but not for returns filed before that date. The decision was made on 23/01/2019, with the appeal partly allowed in favor of the assessee.

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Issues:
1. Validity of penalty imposed under section 234E of the Act for delay in filing TDS return.
2. Jurisdiction of Assessing Officer to levy fees under section 234E prior to 01.06.2015.

Issue 1: Validity of penalty imposed under section 234E of the Act for delay in filing TDS return.
The appeal was filed against the order of the ld. CIT(A) confirming the penalty imposed under section 234E of the Act for the delay in filing the TDS return. The assessee argued that the penalty was contrary to the provisions of law and facts. The ld. CIT(A) upheld the penalty, stating that the adjustment made under section 200A in respect of the fee levied under section 234E was valid and in accordance with the law. The Tribunal noted the arguments presented by both sides and examined the relevant provisions. It was concluded that the penalty under section 234E was upheld for the period from 1.06.2015 to the date of actual filing of the TDS return, with the balance fee being deleted. The ground of appeal was partly allowed, and the appeal of the assessee was partly allowed.

Issue 2: Jurisdiction of Assessing Officer to levy fees under section 234E prior to 01.06.2015.
The Assessing Officer had imposed a penalty under section 234E of the Act for the delay in filing the TDS return, which was challenged by the assessee. The assessee argued that prior to the amendment in section 200A of the Act w.e.f 01.06.2015, the Assessing Officer had no authority to levy fees for the period relating to returns filed before 01.06.2015. The Tribunal referred to a previous decision where it was held that the Assessing Officer was not empowered to charge fees under section 234E of the Act for returns filed before 01.06.2015. However, in the present case, the return was filed after 1.06.2015, and the Tribunal determined that the Assessing Officer had the jurisdiction to levy fees under section 234E for the period from 1.06.2015 to the date of actual filing of the TDS return. The Tribunal upheld the levy of fees under section 234E for the specified period, while deleting the balance fee. The decision was pronounced in the Open Court on 23/01/2019.

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