TaxTMI 
TaxTMI 
2021 (3) TMI 425
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....6-17. 2. The assessee filed statement of tax deducted at source (TDS) for various quarters in Form No.24Q/26Q/ for FY 2012-13 to 2015-16 (AY 2013-14 to 2016-17). The statement was processed by the respondent. There was a delay in filing the above TDS statement and therefore the AO by intimation u/s. 200A of the Income-Tax Act, 1961 ["the Act"] levied late fee u/s. 234E of the Income-Tax Act, 1961 ["the Act"]. Under Sec.234E of the Act, if there is a delay in filing statement of TDS within the prescribed time then the person responsible for making payment and filing return of TDS is liable to pay by way of fee a sum of Rs. 200/- per day during which the failure continues. Section 234E of the Act inserted by the Finance Act, 2012 w.e.f. 1.....
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....be processed and it reads as follows:- Processing of statements of tax deducted at source. 200A. (1) Where a statement of tax deduction at source or a correction statement has been made by a person deducting any sum (hereafter referred to in this section as deductor) under section 200, such statement shall be processed in the following manner, namely:- (a) the sums deductible under this Chapter shall be computed after making the following adjustments, namely:- (i) any arithmetical error in the statement; or (ii) an incorrect claim, apparent from any information in the statement; (b) the interest, if any, shall be computed on the basis of the sums deductible as computed in the statement; ....
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.... tax deducted at source to expeditiously determine the tax payable by, or the refund due to, the deductor as required under the said sub-section." 4. Clause (c) to (f) of section 200A(1) was substituted by the Finance Act, 2015 w.e.f. 1.6.2015. The assessee contended that AO could levy fee u/s.234E of the Act while processing a return of TDS filed u/s.200(3) of the Act only by virtue of the provisions of Sec.200A(1)(c), (d) & (f) of the Act and those provisions came into force only from 1.6.2015 and therefore the authority issuing intimation u/s. 200A of the Act while processing return of TDS filed u/s.200(3) of the Act, could not levy fee u/s. 234E of the Act in respect of statement of TDS filed prior to 1.6.2015. The assessee, thus, ch....
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....ation of delay. The Assessee relied on a decision of ITAT Ahmedabad in the case of M/s.Banner International, Surat Vs. ACIT Surat in ITA No.1829 to 1831/Ahd./2010 wherein it was held that a subsequent decision by the Special Bench of the Tribunal which enlightened the Assessee to prefer appeal before appellate authority for justice, the delay in appeal was condoned as reasonable and justifiable. 6. The CIT(A) found that there was inordinate delay in filing the appeals and those details have been set out in the order of CIT(A) as follows: 7. The CIT(A) firstly observed that as per the decision rendered in the case of Fatheraj Singhvi (supra) by the Hon'ble Karnataka High Court, the Hon'ble Court has observed that if a tax deductor has ....
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....ibunal. None appeared for the Assessee. The learned DR reiterated the stand of the revenue as reflected in the order of the CIT(A). 10. We have considered the submissions of the learned DR and also the grounds of appeal filed by the Assessee. It is not in dispute that if the ratio laid down by the Hon'ble Karnataka High Court in the case of Fateeraj Singhvi (supra) is applied then the levy of interest u/s.234-E of the Act would be illegal for returns of TDS in respect of the period prior to 1.6.2015. The present appeals of the Assessee relate to TDS returns filed prior to 1.6.2015. The decision of the Hon'ble Karnataka High Court in the case of Fateeraj Singhvi (supra) was rendered on 26.8.2016. It has been held by the ITAT Hyderabad Ben....
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....he way of rendering substantive justice, we are of the view that the delay in filing the appeals deserves to be condoned. Accordingly the delay is condoned. Since the CIT(A) has not decided the issue on merits, the order of the CIT(A) is set aside and remanded to the CIT(A) with a direction to decide the appeals of the Assessee on merits in accordance with law with due opportunity to the Assessee of being heard. 12. In the result, all the appeals by the assessee are treated as allowed for statistical purpose. Pronounced in the open court on the date mentioned on the caption page. ============= Document 1 Sl.no F.Y. Quarter Form No. Date of order Date of institution of Delay in filing of appeal (days) 1.....