Tribunal: Retroactive Late Filing Fees Void Pre-2015

The Tribunal held that late filing fees under Section 234E of the Income Tax Act could not be enforced for periods before 01/06/2015. The amended provisions for fee computation under Section 200A were deemed applicable only for returns after 01/06/2015. Appeals for AYs 2013-14 to 2015-16 were allowed, and late fees were deleted. However, for AY 2016-17, the late fee levy was upheld as returns were filed post the provision's insertion.

---

---

Issues Involved:
1. Levy of late filing fee under Section 234E of the Income Tax Act, 1961.
2. Applicability of Section 200A for computation of fee prior to 01/06/2015.
3. Condonation of delay in filing appeals.

Summary:

Issue 1: Levy of Late Filing Fee Under Section 234E
The assessee contested the levy of late filing fee under Section 234E of the Income Tax Act, 1961, arguing that the enabling provision for computation of fee while processing the statements was inserted in Section 200A only w.e.f 1/6/2015. The Tribunal held that the charging section i.e., Section 234E cannot be enforced for periods prior to 1/6/2015. The Tribunal relied on the judgments of the Hon'ble Karnataka High Court in Fatheraj Singhvi vs. Union of India, the Hon'ble Kerala High Court in United Metals vs. ITO (TDS), and the Pune Bench of the Tribunal in Medical Superintendent Rural Hospital, Nashik vs. DCIT, CPC (TDS). The Tribunal directed the deletion of the fee levied under Section 234E for the periods prior to 1/6/2015.

Issue 2: Applicability of Section 200A for Computation of Fee Prior to 01/06/2015
The Tribunal observed that the amended provision for computation of fee under Section 200A applies only for returns pertaining to the period after 1/6/2015. Therefore, returns for periods prior to 1/6/2015, even if filed or processed after 1/6/2015, do not attract the amended provisions. This interpretation was supported by the Hon'ble Karnataka High Court and the Hon'ble Kerala High Court, which held that the amendment in Section 200A is prospective in nature.

Issue 3: Condonation of Delay in Filing Appeals
The Ld. CIT(A)-NFAC dismissed the appeals due to an inordinate delay of 976 days in filing without sufficient cause. The Tribunal, however, focused on the merits of the case and concluded that the late fee under Section 234E should not have been levied for periods prior to 1/6/2015, thus allowing the appeals for AYs 2013-14 to 2015-16.

AY 2016-17:
For AY 2016-17, the Tribunal upheld the levy of late fee under Section 234E since the returns were filed after the insertion of the specific provision for levy of late fee on 01/06/2015. The appeals for AY 2016-17 were dismissed as the levy was in accordance with the law.

Conclusion:
The appeals for AYs 2013-14 to 2015-16 were allowed, and the late fee levied under Section 234E was directed to be deleted. The appeals for AY 2016-17 were dismissed, upholding the levy of late fee as per the amended provisions.

---