2025 (7) TMI 2023

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.... the Direct Tax Vivad Se Vishwas Scheme, 2024, in respect of the above referred appeals, it understood that the said appeals were dismissed by the Ld. CIT(A), NFAC, vide order dated 13.06.2024 and thereafter, took steps to file the instant appeals before the Hon'ble ITAT. Hence, there was a delay in filing the appeals by the assessee. After considering the Affidavits filed by the assessee and also hearing both the parties, we find that there is a reasonable cause for the assessee in not filing appeals on or before the due date prescribed under the law and thus, in the interests of justice, we condone delay in filing of appeals and admit these appeals filed by the assessee for adjudication. 3. The assessee has raised similar grounds of appeal for both the assessment years. We will take up ITA No. 32/Chny/2025 for the assessment year 2014-15 as lead case. Grounds of appeal filed in ITA No. 32/Chny/2025 for the assessment year 2014-15 are reproduced as under:- A. For that the order of the Ld. Commissioner of Income-Tax (Appeals), National Faceless Appeal Centre (NFAC) under section 250 of the Income-Tax Act, 1961 (Act) dated 13.06.2024 is erroneous, bad in la....

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.... in section 234E of the Act, for default in furnishing statements u/s 200A of the Act is not dependent on section 200A(1)(c), which section only prescribe a recovery mechanism. This view was also upheld by the Hon'ble High Court of Madras in its decision in the case of Conceria International (P.) Ltd. vs Income-tax Officer [2003] 157 taxmann.com 335 (Madras). The Hon'ble High Court of Madras relying on the opinion expressed by the Hon'ble Gujarat High Court in the case of Rajesh Kourani v. UOI [2017] 297 CTR 502 held that section 234E by itself creates a liability and the liability to pay the late fees is not dependent on section 200(A)(1)(c) which only prescribed the recovery mechanism. The Hon'ble Court also held that Section 234E gets attracted the moment there is a failure on the part a person to deliver or cause to be delivered a statement within time prescribed, inter alia, u/s 200(3) of the Act. Sub-section 4 to section 234E also makes it clear that the above provision would be effective from 01.07.2012. The Hon'ble High Court thus held that in view of the above, the submission that the section 234E would not be operable/effective unless and until section....

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....p;1002-1007/Chny/2024 dated 26.06.2024 by holding as under:- 4. We have heard ld. Counsel for the assessee and ld.DR. We have perused orders of the authorities below. We find that the issue involved in the present appeals filed by the assessee is on levy of late fee under section 234E of the Act, for belated filing of quarterly TDS returns beyond prescribed date and this issue is squarely covered by the decision of Hon'ble Jurisdictional Madras High Court in the case of M/s. True Blue Voice India Private Limited vs. CCIT & Ors (WP Nos. 2700 & 2703 of 2022) dated 09.10.2023 and held as under:- ''10. There is no dispute on the aspect of validity of the Section 234E of the Act. The only issue that has to be decided in the present case is as to whether the late fee can be imposed under Section 234E of the Act, while processing the statement of TDS under Section 200A of the Act for the subject assessment years? 11. On considering the submissions of both the learned counsel and while reading Section 234E of the Act, it appears that the Department/respondents can impose the late fee for the circumstances mentioned under Section 234E of the Act with effect f....

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....4E of the Act at the time of processing of TDS statement under section 200A of the Act. Currently, the provisions of sub-section (3) of section 200 of the Act enable the deductor to furnish TDS correction statement and consequently, section 200A of the Act allows processing of the TDS correction statement. However, currently, there does not exist any provision for allowing a collector to file correction statement in respect of TCS statement which has been furnished. It is, therefore, proposed to amend the provisions of section 206C of the Act so as to allow the collector to furnish TCS correction statement. Currently, there does not exist any provision in the Act to enable processing of the TCS statement filed by the collector as available for processing of TDS statement. As the mechanism of TCS statement is similar to TDS statement, it is proposed to insert a provision in the Act for processing of TCS statements on the line of existing provisions for processing of TDS statement contained in section 200A of the Act. The proposed provision shall also incorporate the mechanism for computation of fee payable under section 234E of the Act." 13. A reading of t....

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.... waive the late fee and only the Commissioner of Income Tax is empowered to pass the revised order by proper application of provision of Section 264C of the Act. 17. In view of the above, it is made clear that the respondent had had imposed the late fee only under Section 234E of the Act for the assessment years 2012-2013, 2013-2014, 2015-2015. However, Section 200A(1)(c) of the Act was not introduced during the said assessment years. In the absence of any provisions under Section 200A of the Act, when they have processed the application for TDS under Section 200A, no late fee can be imposed under Section 234E. Hence, in such view of the matter, this Court feels that the impugned orders are liable to be set aside'' The Co-ordinate Bench of the Tribunal also in the case of M/s. M.F. Textiles Pvt. Ltd. Vs. ACIT in ITA Nos. 578 & 579/Chny/2021 dated 24.02.2022 had considered an identical issue in light of provisions of section 234E of the Act and also amendment to section 200A by Finance Act, 2015 w.e.f. 01.06.2015 and held that in absence of enabling provision under section 200A of the Act, the Assessing Officer cannot levy late fee under section 234E of the Ac....