Tribunal grants relief to assessee, directs deletion of late fees under Income Tax Act. The tribunal allowed the appeals filed by the assessee, directing the Assessing Officer to delete the levy of late fees under Section 234E of the Income ...
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Tribunal grants relief to assessee, directs deletion of late fees under Income Tax Act.
The tribunal allowed the appeals filed by the assessee, directing the Assessing Officer to delete the levy of late fees under Section 234E of the Income Tax Act for various assessment years. The tribunal applied the decision consistently across multiple appeals, ultimately granting relief to the assessee by setting aside the late fees levy based on legal analysis and precedents cited during the proceedings.
Issues: Appeal against common order of Commissioner of Income Tax (Appeals) under Section 154 and 250 of the Income Tax Act, 1961; Challenge of levy of late fees under Section 234E; Applicability of decision of Hon'ble Karnataka High Court; Filing of rectification petition; Interpretation of provisions under Section 246(1)(c) of the Act.
Analysis: The appeals were filed by the assessee against the common order of the Commissioner of Income Tax (Appeals) under Section 154 and 250 of the Income Tax Act, 1961. Since the appeals had common issues and facts, they were clubbed and heard together. The assessee did not appear during the hearing, and the tribunal proceeded based on the material on record and submissions of the Departmental Representative.
The grounds of appeal raised by the assessee included contentions about the incorrect legal position considered by the Commissioner of Income Tax (Appeals), citing judgments such as the one by the Karnataka High Court regarding the power to levy late fees under Section 234E. The assessee, engaged in the business of Health and Fitness equipment sales, challenged the late filing fees imposed by ACIT, CPC-TDS for Quarterly TDS Returns. The assessee relied on legal precedents to contest the levy of late fees under Section 234E, arguing that it was illegal.
The tribunal reviewed the facts of the case and found that the order under Section 200A of the Act was passed, and the assessee filed a rectification petition against it. The CPC-TDS then passed an order under Section 154 of the Act. The Commissioner of Income Tax (Appeals) dismissed the appeal, stating that the decision of the Karnataka High Court applied prospectively, and the late fees levy could not be challenged under Section 154 of the Act.
Regarding the filing of the rectification petition by the assessee, the tribunal noted that the order was appealable under Section 246(1)(c) of the Act. The tribunal analyzed the applicability of the Karnataka High Court decision in the case of Sri Fatehraj Singh & Others Vs. UOI, emphasizing the effective date of provisions under Section 200A(1)(c), (d), and (f) from 1.6.2015. The tribunal quoted relevant portions of the judgment to support its decision to set aside the late fees levy under Section 234E.
Based on the legal analysis and the precedents cited, the tribunal allowed the appeals filed by the assessee for various assessment years, directing the Assessing Officer to delete the levy of late fees under Section 234E of the Act. The tribunal applied the decision consistently across multiple appeals filed by the assessee, ultimately allowing all the appeals.
In conclusion, the tribunal granted relief to the assessee by setting aside the late fees levy under Section 234E based on the legal analysis and precedents cited during the proceedings.
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