Tribunal upholds fees for late TDS statements under Income Tax Act, dismissing single transaction argument.

The Tribunal upheld the levy of fees under section 234E of the Income Tax Act for each TDS statement filed late, dismissing the assessee's arguments regarding the single transaction treatment for multiple flats purchased. The Tribunal affirmed the decision of the Commissioner (Appeals) and emphasized the mandatory nature of levying fees for each delayed TDS statement. The appeal against the levy of fees was deemed maintainable but did not alter the outcome. The order was pronounced on 28.06.2019.

---

---

Issues Involved:
1. Levy of fees under section 234E of the Income Tax Act for delay in filing Form 26QB for each flat purchased.
2. Applicability of section 194IA of the Income Tax Act to the transaction.
3. Whether the transaction should be treated as a single transaction or multiple transactions for the purpose of filing TDS statements and levying fees under section 234E.

Detailed Analysis:

1. Levy of Fees under Section 234E:
The primary issue raised by the assessee was the confirmation of the action of the Assessing Officer in levying fees under section 234E of the Income Tax Act for the delay in filing Form 26QB for each flat purchased. The assessee argued that since the flats were purchased through a single allotment letter, the levy of fees should be restricted to one challan-cum-statement of TDS. The Commissioner (Appeals) dismissed this argument, stating that the fee under section 234E is not a penalty but a compensation for the additional burden on the Department due to late filing. The Tribunal upheld this view, noting that the assessee had filed separate TDS statements for each flat and thus, the levy of fees for each statement was justified.

2. Applicability of Section 194IA:
The assessee contended that section 194IA, which pertains to the deduction of tax at source on the transfer of immovable property, was not applicable as the allotment letter did not constitute a transfer of immovable property. The Tribunal rejected this argument, stating that the assessee had deducted tax at source under section 194IA at the time of making the payment, indicating that both the assessee and the seller treated the transaction as falling under this provision. Consequently, the legal consequences, including the requirement to file TDS statements and the applicability of section 234E for late filing, were applicable.

3. Single vs. Multiple Transactions:
The assessee argued that the purchase of 96 flats should be treated as a single transaction for the purpose of filing TDS statements and levying fees under section 234E. The Tribunal found no merit in this argument, noting that the allotment letter detailed the cost of each flat separately and the assessee had computed and deposited TDS based on the cost of each individual flat. Therefore, the levy of fees under section 234E for each TDS statement filed separately was justified. The Tribunal emphasized that the use of the word "shall" in section 200A(1)(c) made it mandatory for the Assessing Officer to levy fees under section 234E for each delayed TDS statement.

Conclusion:
The Tribunal dismissed all the appeals, upholding the levy of fees under section 234E for each TDS statement filed late. The decision of the Commissioner (Appeals) was affirmed, and the Tribunal found no reason to interfere with it. The Tribunal also acknowledged that the appeal against the levy of fees under section 234E was maintainable before the Commissioner (Appeals), but this did not alter the outcome of the case. The order was pronounced in the open court on 28.06.2019.

---