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of <h1>Tribunal allows appeals on late fees under Income-tax Act, 1961, clarifies legal provisions</h1> <h3>Eagle Flask Industries Pvt. Ltd. Versus Dy. CIT, Circle-8, Pune</h3> Eagle Flask Industries Pvt. Ltd. Versus Dy. CIT, Circle-8, Pune - TMI Issues involved:The judgment deals with the condonation of delay in filing appeals due to late fees imposed under section 234E of the Income-tax Act, 1961 for belated filing of TDS returns.Condonation of Delay:The appeals arose from orders passed by the CIT(A) in National Faceless Appeal Centre (NFAC), Delhi, dismissing them on account of delays ranging from 1973 days to 2881 days. The issue was whether such a long delay deserves condonation. Citing the judgment of the Hon'ble High Court of Bombay, it was noted that delay due to improper legal advice can be condoned. The Tribunal found that the legal issue raised by the assessee was already decided in their favor by the jurisdictional High Court and other authorities, thus condoning the delay.Charging of Interest u/s.234E:The appeals raised the issue of charging interest under section 234E for quarters of the assessment years. The assessee, engaged in the business of manufacture and sale of Thermowares, filed TDS returns belatedly, leading to the imposition of late fees by the Assessing Officer. The appeals against the waiver of such fees were dismissed by the CIT(A) due to being time-barred.Legal Analysis:The Tribunal examined that the fee under section 234E was imposed for delays in furnishing statements for quarters before 01-06-2015. Section 200A(1)(c) inserted by the Finance Act, 2015 allowed the levy of fee under section 234E only for defaults after 01-06-2015. Referring to judgments like Olari Little Flower Kuries Pvt. Ltd. Vs. Union of India and Jiji Varghese VS. ITO (TDS) & Ors., it was held that no interest under section 234E can be imposed for periods before June 1, 2015. Consequently, the NFAC's order confirming the levy of fee under section 234E was set aside, and the appeals were allowed.Conclusion:In conclusion, the Tribunal allowed all the appeals, emphasizing the correct application of legal provisions regarding the condonation of delay and the charging of interest under section 234E. The judgment provides clarity on the timelines and conditions for imposing fees under the Income-tax Act, ensuring fair treatment for taxpayers.
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