2020 (11) TMI 48 - AT - Income Tax

Tribunal Admits Belated Appeals, Condoning Delay - Fee Imposition Clarified

The tribunal admitted the belated appeals for adjudication on merits, condoning the 255-day delay attributed to a reasonable cause. Regarding the fee ... Levy of fee under section 234E for late filing of TDS statements - Processing of TDS statements under section 200A - Amendment by Finance Act 2015 introducing clause (1)(c) to section 200A w.e.f. 01.06.2015 - Clarificatory amendment doctrine - Pre-01.06.2015 applicability of section 234ELevy of fee under section 234E for late filing of TDS statements - Processing of TDS statements under section 200A - Pre-01.06.2015 applicability of section 234E - Whether fee under section 234E can be levied while processing TDS statements under section 200A for periods prior to 01.06.2015. - HELD THAT: - The Tribunal found that although section 234E was introduced w.e.f. 10.07.2012, no corresponding enabling provision in section 200A authorised levy of the fee while processing TDS statements until clause (1)(c) was inserted by the Finance Act, 2015 effective 01.06.2015. In absence of that specific empowerment under section 200A prior to 01.06.2015, the levying authority had no statutory power to impose the fee under section 234E during processing of TDS statements for periods before 01.06.2015. The Tribunal noted consistent decisions of different benches of the Tribunal and the Karnataka High Court adopting the same view, and applied the established principle that where courts differ, the view favourable to the assessee should be followed. Consequently, the Tribunal held that fee under section 234E cannot be charged in respect of TDS statements pertaining to periods prior to 01.06.2015 and set aside the contrary levy. [Paras 6]Levy under section 234E cannot be made while processing TDS statements under section 200A for any period prior to 01.06.2015; appeals allowed on this ground.Processing of TDS statements under section 200A - Verification of facts before giving effect to appellate direction - Whether the Assessing Officer should be directed to verify facts and refrain from charging fee under section 234E for periods prior to 01.06.2015. - HELD THAT: - Having concluded that no statutory power existed to levy section 234E fees prior to 01.06.2015, the Tribunal directed the Assessing Officer to verify the relevant facts of the assessee's TDS filings and to ensure that no fee under section 234E is charged for any period earlier than 01.06.2015. This direction is a limited verification remand to give effect to the legal conclusion reached, not a re-adjudication of the legal issue on merits. [Paras 6, 7]Assessing Officer to verify relevant facts and shall not charge fee under section 234E for periods prior to 01.06.2015.Final Conclusion: The appeals are allowed: the Tribunal held that section 234E could not be levied while processing TDS statements under section 200A for any period prior to 01.06.2015, and directed the Assessing Officer to verify facts and not to impose such fee for Financial Years 2012-13, 2013-14 and 2014-15. Issues:Delay in filing appeals, fee levied under section 234E of the ActDelay in filing appeals:The appeals were filed belatedly with a delay of 255 days. The assessee sought condonation of delay, attributing it to reasonable cause. After reviewing the application and affidavit, the tribunal found the delay justified and admitted the appeals for adjudication on merits.Fee levied under section 234E of the Act:The common issue in all appeals pertained to the fee charged under section 234E of the Act while processing TDS statements under section 200A for various quarters of Financial Year 2012-13, 2013-14, and 2014-15. The Assessing Officer imposed fees for late filing of TDS statements under section 200A. The assessee challenged this levy, citing judicial precedents to support the claim that the fee under section 234E cannot be charged for periods before 01.06.2015. Despite the submissions, the CIT(A) upheld the levy, deeming the amendment to section 200A as clarificatory.Detailed Analysis:The tribunal noted that section 234E, allowing a fee for late TDS statement filing, was introduced in 2012, but no corresponding amendment empowered fee levy under section 200A until 2015. Prior to 01.06.2015, section 200A did not provide for the imposition of fees under section 234E. Various tribunal benches consistently held that pre-2015, section 200A did not allow fee imposition under section 234E. The Karnataka High Court and tribunal decisions supported this stance. In the absence of a jurisdictional High Court decision, the tribunal followed the Karnataka High Court's view and directed the AO not to charge fees under section 234E for periods preceding 01.06.2015.This comprehensive analysis of the judgment addresses the issues of delay in filing appeals and the fee levied under section 234E of the Act, providing a detailed breakdown of the tribunal's reasoning and decision-making process.