The Income Tax Appellate Tribunal ( ITAT ), Delhi Bench, has recently, in an appeal filed before it, held that late fee u/s 234E, is not leviable for belated filing of TDS statements, filed prior to 01.06.2015.
The aforesaid observation was made by the Delhi ITAT, when appeals were filed before it by the Assessee, as against the orders of the Commissioner of Income Tax (Appeals), New Delhi [CIT(A)], all dated 28.08.2020 concerning the levy of late fee of different amount under Section 234E of the Income Tax Act, vide intimation under Section 200A of the Income Tax Act.
Hearing the contentions of Shri Jeetandra Kumar Kale, the Sr. DR, on behalf of the Revenue, with no appearance on the assessee’s behalf, the Delhi ITAT commented:
“We have perused the first appellate order as well as the order passed under Section 234E of the Act. The Revenue has imposed a late fee under Section 234E of the Act for default in furnishing TDS returns within the time stipulated in the law. The machinery provision of Section 200A of the Act provides for the processing of statement of tax deducted at source which has been amended by the Financial Act, 2015 w.e.f. 01.06.2015 and new clauses (c) and (d) has been inserted in Section 200A of the Act. By virtue of the such amendment, while processing of the TDS statement, the late fee, if any shall be computed in accordance with provisions of Section 234E of the Act. As a corollary, prior to amendment under Section 200A of the Act, levy of fee under Section 234E during the processing of TDS statement is not tenable.”
“Since the amendment has been inserted under Section 200A of the Act w.e.f. 01.06.2015, the default committed by the assessee, if any, prior to the amendment will not attract fee under Section 234E of the Act.”, the ITAT added.
Further adding, the Bench consisting of Narender Kumar Choudhry, the Judicial Member, along with Pradip Kumar Kedia, the Accountant Member observed:
“All the captioned appeals involving levy of late filing fee under Section 234E are in relation to period prior to 01.06.2015. Thus, late filing fee under Section 234E is contrary to the legislative mandate as well as plethora of decisions of the Co-ordinate Bench of Delhi Tribunal binding upon the AO. The Co-ordinate Bench of Delhi ITAT in the case of Raj Veer Singh vs. ACIT-CPC-TDS ITA No.3681/Del/2017 order dated 09.07.2021 has decided the issue in favour of the Assessee.”
Thus, allowing the assessee’s appeals, the Delhi ITAT held:
“Since the demand under charging Section 234E for late filing of TDS return arising from belated TDS statements filed prior to 01.06.2015, the impugned late fee imposed requires to be deleted. In the result, all the three captioned appeals of the assessee are allowed.”
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