2022 (11) TMI 527 - AT - Income Tax

Appeals Allowed: Late Filing Fees Invalid pre-2015

The tribunal allowed the assessees' appeals, ruling that the late filing fees charged under section 234E before 01.06.2015 were invalid. The tribunal ... Levying late fees u/s 234E - delay in filing of TDS statement(s) - HELD THAT:- As levying late fees u/s 234E of the Act; involving varying sums, for delay in filing of TDS statement(s), there is hardly any dispute between the parties that this statutory provision itself carries prospective effect from 01.06.2015 whereas all these quarters / assessment years; as the case may be, in issue before us are well before the said date. Revenue could not file any case law to the contrary except Rajesh Kourani Vs. Union of India [2017 (7) TMI 458 - GUJARAT HIGH COURT] which already stands considered in the foregoing discussion. We, accordingly, accept the assessee’s identical sole substantive ground in all these appeals. The impugned late filing fees sum(s) stands deleted. Issues Involved:1. Levy of late fees under section 234E of the Income Tax Act, 1961.2. Validity of rectification applications under section 154 of the Income Tax Act, 1961.3. Timeliness and condonation of delay in filing appeals.Detailed Analysis:1. Levy of Late Fees under Section 234E of the Income Tax Act, 1961:The primary issue was the levy of late fees under section 234E for delays in filing TDS statements. The tribunal noted that section 234E has a prospective effect from 01.06.2015. Since the quarters/assessment years in question were before this date, the tribunal found the issue to be 'hardly res integra' based on its previous decisions, particularly the consolidated order dated 25.10.2018 in ITA Nos.651/PUN/2018 to 661/PUN/2018 and ITA Nos.1018/PUN/2018 to 1028/PUN/2018. The tribunal cited several precedents, including the Hon'ble High Court of Karnataka's decision in Fatheraj Singhvi Vs. Union of India, which held that the amendment to section 200A(1) is procedural and prospective, thus the Assessing Officer was not empowered to charge fees under section 234E for periods before 01.06.2015. Consequently, the tribunal ruled that the demands raised by charging fees under section 234E were invalid and deleted them.2. Validity of Rectification Applications under Section 154 of the Income Tax Act, 1961:The tribunal addressed the assessees' appeals against the orders passed under section 154, rejecting their rectification applications. The tribunal referred to its previous decisions, emphasizing that the rectification applications were filed in response to intimation issued under section 200A, and thus the time period for appeals should be computed from the date of the order under section 154, not from the date of intimation. The tribunal found no merit in the CIT(A)'s dismissal of the appeals based on delay, as the appeals were timely filed against the section 154 orders.3. Timeliness and Condonation of Delay in Filing Appeals:The tribunal addressed the Revenue's objection regarding the maintainability of the assessees' section 154 rectification applications, arguing they were time-barred. The tribunal found no merit in this objection, noting that the assessees had sought rectification within the prescribed time limits. Additionally, the tribunal condoned a delay of 16 days in filing appeals (ITA Nos.568 to 579/PUN/2021), recognizing the period fell within the Covid-19 pandemic outbreak.Conclusion:The tribunal allowed the assessees' appeals, deleting the late filing fees charged under section 234E for the periods before 01.06.2015 and dismissing the Revenue's technical objections regarding the timeliness of the rectification applications. The tribunal's decision was pronounced in the open court on 20th October 2022.