Tribunal cancels fee levy for late tax statement, High Court clarifies application date for fee.

The Tribunal allowed the appeal, ruling that no fee was leviable under section 234E for the violation of section 200(3) as the statement was filed promptly after tax payment. The Karnataka High Court clarified that the levy of fee under section 200A with section 234E can only be applied from 1st June 2015 onwards, and since the statement was filed before this date, the demand was canceled.

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Issues:
Late filing fee/penalty under section 234E for the assessment year 2014-15.

Analysis:
The appeal was filed against the order imposing a late filing fee of Rs. 12,200 under section 234E. The assessee argued that the fee can only be levied if there is an enabling provision under section 200A, which came into effect from 1st June 2015. However, the CIT(A) referred to a judgment by the Bombay High Court and ruled against the assessee.

The Department relied on judgments by the Delhi High Court and the Bombay High Court, arguing that the fee under section 234E is automatic in case of a delay in filing the tax statement.

The Tribunal found a delay in filing statements for various quarters for the financial years 2012-13. Section 200 and 200A deal with the processing of tax deducted at source statements. The relevant provision of section 200A was substituted by the Finance Act 2015, which included the computation of fees under section 234E.

Section 234E imposes a fee when a statement is not filed within the prescribed time under section 200(3). The demand in this case was based on the failure to furnish the statement for tax deduction at source. The Tribunal noted that the statement should be filed after the tax payment, as per rule 31A (4A).

The Karnataka High Court clarified that the levy of fee under section 200A with section 234E can only be applied from 1st June 2015 onwards. Since the statement was filed before this date, the Tribunal ruled that no fee was leviable under section 234E. The demand was canceled, and the appeal of the assessee was allowed.

In conclusion, the Tribunal allowed the appeal of the assessee, stating that no fee was leviable under section 234E for the violation of section 200(3) as the statement was filed promptly after tax payment.

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