Tribunal Rules on Late Fees for Tax Returns: Exceptions for Pre-2015, Upheld for Post-2015 Returns

The Tribunal allowed the appeals for AYs 2015-16, 2016-17, and 2017-18, directing the deletion of the late fee levied under Section 234E for periods prior to 01/06/2015. However, for AYs 2016-17 and 2017-18, where returns were filed after 01/06/2015, the Tribunal upheld the levy of late fee under Section 234E. The Tribunal delivered separate judgments for different assessment years, considering legal provisions and precedents in condoning delay, deleting late fees, and upholding late fees based on the timing of return filings.

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Issues Involved:
1. Delay in filing the appeal.
2. Levy of late filing fee under Section 234E of the Income Tax Act, 1961.
3. Application of amended provisions of Section 200A w.e.f. 01/06/2015.

Issue-wise Detailed Analysis:

1. Delay in Filing the Appeal:
The Tribunal noted a delay of 4 days in filing the appeals. The assessee explained that the delay was due to the chartered accountant being busy with tax audits. The Tribunal found this reason to be beyond the control of the assessee and not intentional. Therefore, the delay was condoned in the interest of substantial justice.

2. Levy of Late Filing Fee Under Section 234E:
The assessee argued that the CPC-TDS was incorrect in levying the late filing fee under Section 234E for the periods prior to the insertion of the enabling provision in Section 200A by the Finance Act, 2015, effective from 01/06/2015. The Tribunal referred to several judicial precedents, including the judgments of the Karnataka High Court in Fatheraj Singhvi vs. Union of India and the Kerala High Court in United Metals vs. ITO (TDS). These judgments held that the fee under Section 234E could not be levied for periods prior to 01/06/2015, even if the returns were filed or processed after this date. The Tribunal concluded that the levy of late fee under Section 234E for defaults occurring before 01/06/2015 was not sustainable in law. Consequently, the Tribunal allowed the appeals for AYs 2015-16, 2016-17, and 2017-18, directing the deletion of the late fee levied under Section 234E.

3. Application of Amended Provisions of Section 200A w.e.f. 01/06/2015:
For AYs 2016-17 and 2017-18, the Tribunal examined whether the returns filed after 01/06/2015 but pertaining to periods before this date should attract the amended provisions of Section 200A. The Tribunal observed that the enabling provision for the computation of fee under Section 234E was inserted in Section 200A only w.e.f. 01/06/2015. Therefore, the fee could not be enforced for periods prior to this date. However, in cases where the TDS statements were filed after 01/06/2015, the Tribunal upheld the levy of late fee under Section 234E, as the returns were filed beyond the stipulated time after the amendment came into effect. Consequently, the appeals for these periods were dismissed.

Separate Judgments Delivered:
The Tribunal delivered separate judgments for different assessment years, allowing the appeals for AYs 2015-16, 2016-17, and 2017-18, and dismissing the appeals for AYs 2016-17 and 2017-18 where the returns were filed after the amendment date of 01/06/2015.

Conclusion:
The Tribunal's order reflects a thorough consideration of the legal provisions and judicial precedents, leading to the condonation of delay in filing appeals, the deletion of the late fee for periods prior to 01/06/2015, and upholding the levy of late fee for returns filed after this date.

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