2020 (9) TMI 328 - AT - Income Tax

Tribunal grants relief on late appeals, limits Income Tax Act fees retroactively

The Tribunal condoned the delay in filing appeals due to valid reasons and admitted them for adjudication. Regarding the justification of levying fees ... Levying fee u/s 234E - statement processed u/s 200A - Scope of amendment - HELD THAT:- As regards the fate of fees levied u/s 234E of the Act for the returns filed and processed before 1.6.15 we after considering the judicial pronouncements have taken a consistent view that the amendment brought in Finance Act, 2015 w.e.f. 1.6.2015 under Section 200A (clause (c )] of the Act is prospective in nature thereby empowering the revenue authorities to charge fee u/s 234E of the Act only after 1.6.2015. Various judgments referred and relied by Ld. Counsel for the assessee also lays down common ratio that since the amendment brought in by Finance Act 2015 u/s 200A(c ) of the Act w.e.f. 1.6.2015 is prospective in nature, therefore revenue authorities are not empowered to levy the fees u/s 234E in the processing completed before 1.6.2015. In the instant case both the date of filing the quarterly return as well as the date of processing by CPC is after 1.6.2015, so in these given facts whether the revenue authorities were justified in levying fee u/s 234E of the Act. Assessee is eligible for partial relief to the extent of deletion of fee levied u/s 234E of the Act for the delay up to 1.6.2015 and the remaining amount i.e. the fees levied for default committed after 1.6.2015 needs to be confirmed. - Decided partly in favour of assessee. Issues Involved:1. Delay in filing appeals before the Tribunal.2. Justification of levy of fees under section 234E of the Income Tax Act.Issue 1: Delay in filing appeals before the TribunalThe appeals filed by the assessee were delayed by 49 days. The Tribunal, after considering the reasons for the delay, condoned the delay in the interest of justice and admitted the appeals for adjudication.Issue 2: Justification of levy of fees under section 234E of the Income Tax ActThe main issue in the appeals was whether the Revenue authorities were justified in levying fees under section 234E of the Act for the delay in filing TDS quarterly returns. The assessee argued that prior to June 1, 2015, there was no provision in section 200A for raising demands related to fees under section 234E. The amendment made in section 200A of the Act from June 1, 2015, was considered prospective, empowering the Revenue authorities to charge fees under section 234E only after this date.The Tribunal referred to various judicial precedents and held that the amendment introduced by the Finance Act, 2015, was prospective. Therefore, the Revenue authorities were not authorized to levy fees under section 234E for returns filed and processed before June 1, 2015. The Tribunal considered similar cases and upheld the levy of fees under section 234E for the period after June 1, 2015, while directing the deletion of fees for delays before this date.Based on the above decisions, the Tribunal granted partial relief to the assessee by deleting the fees levied under section 234E for delays up to June 1, 2015, and confirming the fees for defaults committed after this date. The Revenue authorities were directed to verify and adjust the fees accordingly.This detailed analysis of the legal judgment highlights the issues of delay in filing appeals and the justification of levying fees under section 234E of the Income Tax Act, providing a comprehensive understanding of the Tribunal's decision.