Late fees under Section 234E upheld for delayed TDS statement filing despite reasonable cause claims

ITAT Chandigarh upheld late fees under Section 234E for delayed TDS statement filing. The assessee claimed reasonable and bonafide cause for the delay, but the tribunal found no violation by the Assessing Officer in applying Sections 234E and 200A. The tribunal agreed with CIT(A)'s findings, declined to examine the merits of the reasonable cause claim, and dismissed the assessee's appeal at the threshold, confirming the late filing fee levy.

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Issues Involved:
1. Contravention of Section 250 of the Income Tax Act, 1961 by the CIT(A).
2. Imposition of late fees under Section 234E for late filing of TDS statement.
3. Grounds for reasonable cause for delay in filing the TDS statement.

Detailed Analysis:

Issue 1: Contravention of Section 250 of the Income Tax Act, 1961 by the CIT(A)
The appellant contended that the CIT(A) erred in passing the order dated 19.04.2023, which is in contravention of the provisions of Section 250 of the Income Tax Act, 1961. However, this issue was not elaborated upon in the judgment, and the primary focus was on the imposition of late fees under Section 234E.

Issue 2: Imposition of Late Fees under Section 234E for Late Filing of TDS Statement
The appellant argued that the CIT(A) erred in confirming the order passed by the AO under Section 200A, which imposed late fees under Section 234E due to the late filing of the TDS statement. The appellant contended that there was a reasonable and bona fide cause for the delay in filing the TDS statement, and the deduction and deposit of TDS were made on time. The CIT(A) upheld the AO's decision, stating that the levy of late fees under Section 234E is mandatory and consequential, and there is no provision for condoning the delay on account of reasonable cause.

Issue 3: Grounds for Reasonable Cause for Delay in Filing the TDS Statement
The appellant provided several reasons for the delay in filing the TDS statement:
- Lack of awareness about the requirement to file a separate TDS statement for non-resident sellers.
- The appellant's mother was suffering from a chronic disease, requiring significant attention and care.
- The nationwide lockdown due to COVID-19, which caused disruptions and delays.

The appellant argued that these factors constituted a reasonable cause for the delay and cited various judicial decisions to support their claim. However, the CIT(A) and the Tribunal found that the levy of late fees under Section 234E is mandatory and cannot be waived based on reasonable cause.

Tribunal's Findings:
The Tribunal examined the matter in detail and referred to the decision of the Coordinate Jaipur Benches in the case of Block Development Officer, Chaksu, Jaipur Vs. ACIT. The Tribunal noted that the levy of late fees under Section 234E is mandatory and the AO has no discretion to waive the fees based on reasonable cause. The Tribunal also referred to the decision of the Coordinate Chandigarh Bench in the case of Gurpreet Singh, which distinguished between technical errors and delays in filing TDS statements. In the instant case, the delay in filing the TDS statement was admitted, and there was no allegation that the AO violated any provisions of Section 234E or Section 200A. Therefore, the adjustment made by the AO on account of late filing fees under Section 234E could not be deleted based on reasonable cause.

Conclusion:
The Tribunal dismissed the appeal of the assessee, confirming the levy of late filing fees under Section 234E. The Tribunal held that the levy of late fees is mandatory and cannot be waived based on reasonable cause. The appeal was dismissed, and the order of the CIT(A) was upheld.

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