DEBASHIS MITRA,G B NAGAR vs. DCIT,TDS, GHAZIABAD

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ITA 2963/DEL/2018Status: DisposedITAT Delhi07 March 2023AY 2015-163 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The tribunal held that the levy of late fee under Section 234E was not tenable for defaults committed prior to the amendment of Section 200A of the Act, which came into effect from June 1, 2015. Therefore, the impugned late fee required to be deleted.

What were the facts?

The assessee, a property buyer, was liable to deduct TDS under Section 194A. A technical error occurred where the buyer's and seller's names were swapped in the TDS deposit. Despite attempts to rectify and re-depositing the TDS correctly, a late filing fee under Section 234E was levied.

What were the issues?

Whether the levy of late filing fee under Section 234E is permissible for defaults occurring before the amendment of Section 200A of the Income Tax Act, 1961.

Which sections of the Income-tax Act were involved?

Section 194A,Section 200A,Section 234E

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “B” DELHI

Before: SHRI CHANDRA MOHAN GARG & SHRI PRADIP KUMAR KEDIA

For Respondent: Shri Pankaj Khanna, Sr.DR

wrongly deposited by putting name of buyer in place of seller and name of seller in place of buyer. Thus, the default committed is only technical and without any loss to the Revenue. As further noticed from the statement of facts, the assessee tried to seek rectification of form 26QB specified for payment from Assessing Officer-TDS vide application dated 15.09.2014 but however no rectification was carried out. The TDS was yet again deposited by the assessee on 14.05.2015 with correct information. Despite this, late filing fee under Section 234E @ Rs.200 per day aggregating to Rs.62,200/- was levied on the assessee.

3.

We have perused the first appellate order as well as the order passed under Section 234E of the Act. The Revenue has imposed late filing fee under Section 234E of the Act for default in furnishing TDS return within time stipulated in law.

4.

The machinery provision of Section 200A of the Act provides for processing of statement of tax deducted at source which has been amended by the Finance 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 such amendment, while processing of 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 processing of TDS statement is not tenable.

5.

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.

6.

The captioned appeal involving levy of late filing fee under Section 234E are in relation to period prior to 01.06.2015. Thus, late

I.T.As No.2962 & 2963/Del/2018 3 filing fee under Section 234E is contrary to the legislative mandate. The Co-ordinate Bench of Delhi ITAT in the case of Raj Veer Singh vs. ACIT-CPC-TDS order dated 09.07.2021 and many others have decided the issue in favour of the assessee in similar circumstances.

7.

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.

8.

This being so, we do not consider it necessary to go to other aspects of the case such as double payment made by the assessee.

9.

In the result, the appeal of the assessee is allowed. (Assessment Year 2015-16) 10. The facts are identical to ITA No.2962/Del/2018 for levy of fee of Rs.21,602/- under challenge. The observations made in ITA No.2962/Del/2018 shall apply mutatis mutandis and therefore, the late filing fee under Section 234E shall not apply in the present appeal too. The late filing fee under Section 234E is thus cancelled ex-parte.

11.

In the result, both the captioned appeals of the assessee are allowed. Order pronounced in the open Court on 07/03/2023.

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