ITAT Mumbai cancels late filing fees under Sec.234E pre-2015, allows appeal delay with valid reasons.

The ITAT Mumbai set aside the CIT(A)'s order and deleted the late filing fees imposed under Sec.234E, based on the legal position that such fees for periods before 01.06.2015 were not valid. The ITAT also condoned the delay in filing the appeal, considering the valid reasons presented by the assessee for the delay.

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Issues:
1. Delay in filing of statements of tax deduction at source for the third quarter for A.Y. 2013-14.
2. Imposition of late filing fees under Sec.234E.
3. Assessment of the delay in filing the appeal.
4. Merits of the case regarding the late filing fee under Sec.234E for the period prior to 01.06.2015.

1. Delay in filing of statements of tax deduction at source:
The appeal was filed against the order passed by CIT(A)-9, Mumbai, arising from an intimation received under Sec.200A of the Income Tax Act, 1961. The delay in filing the TDS statements for the third quarter of A.Y. 2013-14 resulted in the imposition of late filing fees under Sec.234E by the ACIT, Central Processing Cell-TDS.

2. Imposition of late filing fees under Sec.234E:
The CIT(A) upheld the imposition of late filing fees under Sec.234E, dismissing the appeal of the assessee. The delay was calculated to be 3 years and 2 months, contrary to the assessee's claim of a 12-day delay. The CIT(A) found no sufficient cause for the substantial delay and declined to condone it.

3. Assessment of the delay in filing the appeal:
The ITAT Mumbai disagreed with the CIT(A) regarding the delay calculation, determining the delay to be only 12 days. The Tribunal accepted the assessee's explanation for the delay, citing valid reasons. The ITAT set aside the CIT(A)'s decision on condoning the delay, considering the justifiable cause presented by the assessee.

4. Merits of the case regarding late filing fee under Sec.234E:
The ITAT referred to legal precedents, including the High Court of Karnataka and ITAT decisions, stating that late fees under Sec.234E for periods before 01.06.2015 were not valid. Following these precedents, the ITAT concluded that the late filing fee under Sec.234E of Rs. 4,600 was not sustainable for the period prior to 01.06.2015. Therefore, the late filing fee was deleted, and the appeal of the assessee was allowed.

In conclusion, the ITAT Mumbai set aside the CIT(A)'s order and deleted the late filing fees imposed under Sec.234E, based on the legal position that such fees for periods before 01.06.2015 were not valid. The ITAT also condoned the delay in filing the appeal, considering the valid reasons presented by the assessee for the delay.

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