TaxTMI 
TaxTMI 
2025 (4) TMI 1787
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....e the issue involved is common, all these appeals were heard together and decided by the common order. We treat Appeal in ITA No. 136/PUN/2025 as lead case. The assessee has raised the following grounds of appeal : "1. The Ld. ACIT, CPC-TDS is not justified in law and in facts and circumstances of the case in levy of late filing fee u/s 234E of the Income Tax Act, 1961. The statutory provision of sec. 200A was inserted by Finance Act 2015 w.e.f 01/06/2015 with prospective effect. Accordingly, the amendment to section 200A (1) of the Act is procedural in nature. Thus, for the period prior to 01.06.2015, the Assessing officer was not empowered to charge fees under section 234E of the Act. Hence, the levy of the late filing fees in th....
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.... Department has levied 234E late fee for the F.Y. 2012-13 which is not sustainable as held by ITAT Pune. However, ld. CIT(A) has not condoned the delay. Ld.AR submitted that on merits, Assessee should get relief. Submission of ld. DR : 4. Ld.DR for the Revenue relied on the order of the ld. CIT(A). The ld. DR relied on the order of Hon'ble Gujarat High Court in the case of Rajesh Kourani Vs. Union of India 297 CTR 502 (Gujarat), wherein Hon'ble Gujarat High Court has held as under : "Even in absence of section 200A of the Act with introduction of section 234E, it was always open for the Revenue to demand and collect the fee for late filing of the statements. Section 200A would merely regulate the manner in which the computati....
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........In view of the reasons recorded by us hereinabove, when the amendment made under Section 200A of the Act which has come into effect on 1.6.2015 is held to be having prospective effect, no computation of fee for the demand or the intimation for the fee under Section 234E could be made for the TDS deducted for the respective assessment year prior to 1.6.2015. Hence, the demand notices under Section 200A by the respondent-authority for intimation for payment of fee under Section 234E can be said as without any authority of law and the same are quashed and set aside to that extent." 5.3 The decision of the Hon'ble Karnataka High Court was followed by the Hon'ble Kerala High Court in the case of Olari Little Flower Kuries (P.) Ltd., vs. U....
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....t the objections of the respondents are without any basis." 5.6 Thus, Hon'ble Kerala High Court held that when there is no jurisdiction to levy late fee, the delay in filing appeal shall not be the ground for denying relief to the assessee. In the case under consideration, though there has been delay in filing appeal before ld. CIT(A), however, ld. CIT(A) was duty bound to condone the delay and decide the issue on merits as held by Hon'ble Kerala High Court. The substantial justice is more important than procedural delay. 5.7 We are aware that Hon'ble Gujarat High Court in the case of Rajesh Kourani Vs. Union of India(supra) has decided the issue in favour of the Revenue. 5.8 No direct decision on the impugned issue of the Hon'ble ....