Tribunal cancels late fee levy pre-2015 citing officer's lack of authority. Precedent emphasizes law compliance.

The Tribunal allowed the appeals, deleting the levy of late fees u/s. 234E for the specified assessment years based on the legal interpretation that the Assessing Officer lacked the authority to impose such fees before 1.6.2015. The decision was in line with the precedent set by the Hon'ble Karnataka High Court and previous Tribunal rulings, emphasizing the prospective effect of statutory provisions and the need for compliance with the law's timelines and procedures.

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Issues:
Appeals against orders of CIT(A) for assessment years 2013-14, 2014-15 & 2015-16 - Levy of late fees u/s. 234E of the Income Tax Act, 1961.

Analysis:
The appeals by the assessee challenged the levy of late fees u/s. 234E for the mentioned assessment years. The contention was that prior to the insertion of section 200A w.e.f. 1.6.2015, the levy of late fees u/s. 234E could not be made. The assessee relied on decisions of ITAT Cuttack and ITAT Mumbai where late fees were deleted under similar circumstances. The Department did not dispute the submissions made by the assessee. The Tribunal noted that the main issue was the timing of the levy of late fees u/s. 234E, which cannot be made before 1.6.2015. Referring to previous decisions, the Tribunal found that the levy of late fees before 1.6.2015 was not valid.

The Tribunal highlighted the decision of the Hon'ble Karnataka High Court, stating that prior to 1.6.2015, the Assessing Officer did not have the authority to levy fees u/s. 234E while issuing intimation u/s. 200A. The Tribunal relied on the Karnataka High Court's judgment and quashed the intimation for fee under section 234E, setting aside the lower authorities' decisions. The Tribunal emphasized that the amendment to Section 200(3) of the IT Act was effective only from June 1, 2015, and any levy of fee u/s. 234E before this date was beyond the scope of the law. Consequently, the Tribunal deleted the levy of late fees u/s. 234E for the relevant quarters in the mentioned assessment years, in line with the judicial precedent and allowed the appeals filed by the assessee.

In conclusion, the Tribunal allowed the appeals, deleting the levy of late fees u/s. 234E for the specified assessment years based on the legal interpretation that the Assessing Officer lacked the authority to impose such fees before 1.6.2015. The decision was in line with the precedent set by the Hon'ble Karnataka High Court and previous Tribunal rulings, emphasizing the prospective effect of statutory provisions and the need for compliance with the law's timelines and procedures.

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