Tribunal overturns late fee under section 234E, emphasizes statutory provisions in tax law

The Tribunal allowed all the appeals of the assessee, setting aside the orders of the CIT(A) and directing the deletion of the late fees levied under section 234E. The judgment emphasized the importance of statutory provisions and the retrospective application of laws in tax matters.

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Issues:
1. Delay in filing appeals before ITAT.
2. Validity of late fee levied by the AO under section 234E.

Analysis:
1. Delay in filing appeals before ITAT:
The appellant filed an appeal with a delay of 104 days, attributing it to the preoccupation of their counsel in other professional activities. Citing legal precedents, the Tribunal held that the delay was unintentional and beyond the appellant's control, thus condoning the delay to ensure substantial justice. The case proceeded to be adjudicated on its merits.

2. Validity of late fee levied by the AO under section 234E:
The appellant contested the late fee imposed by the AO under section 234E, arguing that such inclusion in the intimation under section 200A was impermissible before June 1, 2015. The appellant relied on case laws to support their contention. The CIT(A), however, upheld the late fee levy based on a judgment of the Gujarat High Court. The Tribunal, after considering the arguments and precedents, found that prior to June 1, 2015, there was no provision in the Act enabling the levy of late fees under section 234E through section 200A. Referring to a similar case, the Tribunal held that the late fee could not be levied for TDS returns filed before June 1, 2015. Consequently, the Tribunal directed the AO to delete the late fee levied under section 234E in the appeals under consideration, ruling in favor of the appellant.

In conclusion, the Tribunal allowed all the appeals of the assessee, setting aside the orders of the CIT(A) and directing the deletion of the late fees levied under section 234E. The judgment emphasized the importance of statutory provisions and the retrospective application of laws in tax matters.

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