2022 (4) TMI 333 - AT - Income Tax

Appeals Dismissed for Late TDS Filing; Lack of Justification for Delays

M/s. Shri Janani Homes Pvt. Ltd. Versus DCIT Centralized Processing Cell-TDS, Ghaziabad.

The ITAT upheld the CIT(A)'s decision to dismiss the appeals concerning the levy of fees under Section 234E for late filing of Quarterly TDS returns. The ... Levying fees u/s 234E for late filing of quarterly TDS return - appeal was dismissed on the ground of limitation - HELD THAT:- CIT(A) has dealt with the issue of limitation in a very exhaustive manner. To seek condonation of inordinate delay of as many as 1065 days, it was incumbent on the assessee to show sufficient cause for late filing of the appeal. This is more important when the orders, notices etc. were readily available in the digital mode on TRACES as noted by Ld. CIT(A) in para- 5.1 of the order. The assessee could not demonstrate any sufficient cause for late filing of the appeal. Similar is the position before us wherein no new material could be adduced by the assessee in support of its submissions. Therefore, the appeal has rightly been dismissed by Ld. CIT(A) and we see no reason to interfere in the same. Accordingly, the appeal stands dismissed. Issues Involved:1. Levy of Fees u/s 234E for late filing of Quarterly TDS returns.2. Dismissal of appeal due to delay in filing.Detailed Analysis:1. Levy of Fees u/s 234E for Late Filing of Quarterly TDS Returns:The primary grievance of the assessee pertains to the levy of fees under Section 234E of the Income Tax Act for the late filing of quarterly TDS returns. The assessee challenged the demand raised by the Centralized Processing Cell (CPC) for TDS, which imposed fees for the delay in filing the returns. The appeals arose from the orders passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC).2. Dismissal of Appeal Due to Delay in Filing:The appeals were dismissed by the CIT(A) primarily on the grounds of limitation. The assessee had filed the appeals after significant delays, ranging from 40 days to 1866 days. The assessee sought condonation of these delays, attributing them to a lack of awareness and communication gaps. However, the CIT(A) found these reasons insufficient and unsupported by any documentary evidence.The CIT(A) emphasized that the TDS statements and the intimation orders under Section 200A were electronically filed and readily accessible on the TRACES portal. The appellant's claim of unawareness was deemed meritless, and the delay was attributed to a lack of due diligence. The CIT(A) cited various judicial pronouncements to highlight that 'sufficient cause' must be demonstrated for condoning delays, and negligence or inaction does not constitute sufficient cause.The CIT(A) referred to several Supreme Court judgments, including Perumon Bhagvathy Devaswom vs. Bhargavi Amma and Balwant Singh vs. Jagdish Singh, which stressed the importance of 'reasonableness' in interpreting 'sufficient cause' and the need to balance the rights of both parties. The CIT(A) concluded that the appellant failed to demonstrate sufficient cause for the inordinate delay and dismissed the appeals.Conclusion:The ITAT concurred with the CIT(A)'s findings and dismissed the appeals. The ITAT noted that the assessee could not provide any new material or sufficient cause for the delay in filing the appeals. The appeals were dismissed for want of condonation of delay, as the reasons provided by the assessee were found to be inadequate and unsupported by evidence. The ITAT upheld the CIT(A)'s decision, emphasizing the importance of adhering to the prescribed period of limitation and the need for sufficient cause to be demonstrated for condoning delays.