ITAT Deletes Late Fee for TDS Default since it is Committed prior to 01/06/15 [Read Order]

The Income Tax Appellate Tribunal in its recent order deleted late Fee levied on ground of TDS default since it is committed prior to 1^st June 2015.

In instant appeal assessee had filed the TDS returns belatedly which was accepted by TIN. Subsequently DCIT, Centralised Processing Cell-TDS, levied late fee of Rs.6000/- for delay of 105 days as per intimation under section 200 A of the Act and aggrieved assessee preferred appeal before DCIT and submitted that provision of section 200 A was inserted by finance act 2015 during 01/06/15 which was not retrospective in nature and hence the TDS statements filed prior to 01/06/15 could not be levied with any late fee charges under Section 234E of the Income Tax Act in an intimation issued under Section 200A of the Income Tax Act.

The sole issue dealt with is whether assessing officer could charge late fee under provisions of section 234 E of the Act, where admittedly 1st quarterly TDS returns filed by assessee were delayed.

Identical issue arose before Coordinate Bench of this Tribunal in the case of Gajanan Constructions vs. DCIT reported in (2016) 73 Taxmann.com 380 (Pune-Trib) wherein the tribunal hold that the Assessing Officer is not empowered to charge the fees under section 234E of the Act by way of intimation issued under section 200A of the Act in respect of defaults before 01.06.2015.

Admittedly the default has been committed by assessee prior to 01.06.2015, following the same, the tribunal bench including President G.D.Agrawal and Judicial Member Beena A Pillai opinioned that the Assessing Officer is not empowered to charge fees under section 234E of the Act by way of intimation issued under Section 200A of the Income Tax Act, in the case of present assessee since the default committed is prior to 01/06/15.