Tribunal allows appeals, deletes section 234E fees for TDS returns pre-June 2015

The Tribunal allowed all three appeals filed by the assessee, directing the deletion of fees under section 234E. The decision was based on the analysis that there was no basis for levying fees under section 234E for TDS returns filed and processed before 1st June, 2015. The Tribunal emphasized following judgments favoring the assessee in cases of conflicting High Court decisions.

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Issues:
Whether the fee prescribed under section 234E could be levied in intimation under section 200A for the default in furnishing e-TDS statement for the period prior to 1st June, 2015.

Analysis:

Issue 1: Interpretation of Provisions
The appellant contended that prior to 1st June, 2015, there was no provision enabling the levy of fees under section 234E in intimation under section 200A. The appellant relied on the decision of the Amritsar Bench of ITAT in a previous case, which supported this argument. Additionally, reference was made to a judgment by the Hon'ble Karnataka High Court, stating that the amendment to section 200A with effect from 1-6-2015 was prospective and not applicable for assessment years before this date. The Hon'ble Gujarat High Court held a differing view, allowing the Revenue to charge fees under section 234E post-2016 when enabling provisions existed in section 200A.

Issue 2: Precedents and Legal Interpretations
Various judgments were cited to support the appellant's position, including decisions by the Pune Bench of the Tribunal and the Hon'ble Supreme Court's principle that in case of conflicting judgments, the one favoring the assessee should be followed. The appellant also highlighted specific cases from the Amritsar Bench where the levy of fee under section 234E was deemed illegal.

Issue 3: Adverse Arguments
The respondent, supported by the Hon'ble Gujarat High Court's judgment, argued in favor of the lower authorities' findings. However, the appellant contested these arguments based on the legal interpretations and precedents discussed earlier.

Judicial Findings:
In a detailed analysis of previous cases, the Tribunal found that in instances where the TDS returns were filed and processed before 1st June, 2015, there was no basis for levying fees under section 234E. The Tribunal referred to specific cases where such fees were deleted due to the absence of a continuing default post-2015. The Tribunal emphasized the importance of following the judgment in favor of the assessee in cases of conflicting High Court decisions.

Conclusion:
Based on the above analysis and legal interpretations, the Tribunal allowed all three appeals filed by the assessee, directing the deletion of fees under section 234E. The decision was made in adherence to the principle that in the absence of a jurisdictional High Court decision, the judgment favoring the assessee should be followed.

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