Tribunal upholds late fee for TDS statement delay in F.Y. 2015-16

The Income Tax Appellate Tribunal upheld the late fee imposition of Rs. 32,700 on the assessee for TDS statements filed for the 3rd quarter of F.Y. 2015-16 under section 234E. The Tribunal affirmed that the late fee was valid as per sections 200A and 234E, and rejected the assessee's argument of reasonable cause for the delay in filing. The appeal was dismissed, and the late fee under section 234E was confirmed to be payable by the assessee.

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Issues:
Late filing fee under section 234E imposed on the assessee for TDS statements filed for the 3rd quarter of F.Y. 2015-16 - Validity of late fee imposition - Reasonable cause for delay in filing the e-TDS statement.

Analysis:
The appeal by the assessee challenged the order of the Commissioner of Income Tax (CIT) dated 27.09.2017 for the Assessment Year (AY) 2016-17. The assessee raised grounds against the imposition of late filing fee of Rs. 32,700 under section 234E for TDS statements related to the 3rd quarter of F.Y. 2015-16. The assessee contended that the late fee could not be recovered for statements due for F.Y. 2011-12 or 2012-13 if not collected at the time of delivering them to the department. The assessee argued that the delay in filing the TDS statement did not result in any revenue loss and was a venial breach, with no mala fide intention. Additionally, it was highlighted that the law did not make any person responsible for depositing late fee under section 234E.

The Assessing Officer (AO) determined a sum of Rs. 32,700 payable by the assessee for late filing fee under section 234E. The AO noted defaults related to non-payment or partial payment of tax, instructing the assessee to pay the default amount within the specified time frame. The CIT(A) upheld the late fee imposition, citing the provisions of section 200A and 234E, stating that the adjustment made under section 200A(1)(c) was valid. The assessee, dissatisfied with the CIT(A) order, appealed before the Income Tax Appellate Tribunal (ITAT).

During the ITAT proceedings, the assessee reiterated that there was a reasonable cause for the delay in filing the e-TDS statement, which was not considered by the CIT(A). The Revenue supported the CIT(A)'s decision, arguing that the late fee imposition under section 234E was mandatory and consequential, not subject to deletion based on reasonable cause. The ITAT analyzed the provisions of section 200A, 234E, and 200(3) concerning TDS statement filing requirements. Referring to previous decisions, the ITAT affirmed that late fee under section 234E could be levied in accordance with section 200A post-1-6-2015.

Based on the above considerations, the ITAT upheld the CIT(A)'s order confirming the late fee levied by the AO under section 200A read with 234E, as the defaults occurred after 1-6-2015. Consequently, the appeal of the assessee was dismissed, and the late fee under section 234E was directed to be confirmed.

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