2023 (7) TMI 16 - AT - Income Tax

Tribunal removes late filing fees for businesswoman citing Covid-19 challenges

The Tribunal allowed the appeal, deleting the late filing fees imposed under section 234E of the Income Tax Act. The appellant, a businesswoman, ... Levy of late filing fees levied u/s 234E - delay in filing of TCS return as concerned chartered accountant of the assessee to the effect as his office was not properly working due to outbreak of Covid-19 pandemic - HELD THAT:- A small period of delay in filing of TCS return, we are of the view that the assessee was prevented by sufficient cause for not filing the TCS return in time which was beyond the control of the assessee. Therefore, the late filing fees imposed by the AO u/s 234E of the Act is ordered to be deleted. Appeal of the assessee stands allowed. Appeal against levy of late filing fees under section 234E of the Income Tax Act arising from delayed TCS return upheld. Appellant, a businesswoman, asserted dependence on her chartered accountant and alleged that pandemic-related office closure and operational disruption caused delay in filing the third-quarter TCS return, despite timely transmission of required data and deposit of TCS with interest. Return due date had been extended to 31.01.2021 but was filed on 14.05.2021; a certificate from the chartered accountant corroborated non-functioning of his office from 20.03.2020 to 31.05.2021. Tribunal found the delay constituted circumstances 'beyond the control of the assessee' and held that 'the assessee was prevented by sufficient cause for not filing the TCS return in time.' Consequently, the late filing fees imposed by the Assessing Officer u/s 234E 'is ordered to be deleted,' and the appeal was allowed.