Tribunal Cancels Section 234E Fee for AY 2013-14, Cites Amendment

The Tribunal reversed the order of the CIT(A) and canceled the fee levied under section 234E of the Income Tax Act for Assessment Year 2013-14, citing the insertion of enabling clause (c) in section 200A from 01.06.2015. The Tribunal noted that no late fee could be charged for TDS statements filed up to 31.03.2015, referencing relevant judgments. The decision was pronounced on 01.09.2022, overturning the imposition of late fees upheld by the lower authorities.

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Issues:
Challenge to the levy of fee u/s 234E of the Income Tax Act, 1961 for Assessment Year 2013-14.

Analysis:
The appeal challenged the order of the Ld. Commissioner of Income Tax (Appeals) upholding the levy of fee u/s 234E of the Income Tax Act, 1961 for the Assessment Year 2013-14. The AO imposed late fees u/s 234E of the Act, which was confirmed by the ld. CIT(A), even though the enabling clause (c) was inserted in section 200A w.e.f. 01.06.2015. The assessee contended through written submission that the demand raised by ITO (TDS) was against the law and facts of the case, wrongly confirmed by CIT(A) without appreciating the merits. The assessee relied on various judgments to support their case.

The issue was whether the late filing fee u/s 234E of the Act was rightly charged in the intimation issued u/s 200A/206CB of the Act while processing the TDS returns/statements, considering the enabling clause (c) inserted in the section w.e.f. 01.06.2015. It was argued that no late fee could be levied for TDS statements filed up to 31.03.2015. The Tribunal noted that in a similar case, the addition had been deleted by a Co-ordinated bench, citing relevant judgments.

Based on the arguments and precedents, the Tribunal reversed the order of the CIT(A) and canceled the fee levied under section 234E of the Act. The decision was pronounced in the open court on 01.09.2022.

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