SUMEL HEIGHTS PVT LTD,NEW DELHI vs. ITO WARD - 77(2), NEW DELHI

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ITA 1781/DEL/2020Status: DisposedITAT Delhi15 February 2023AY 2013-142 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 prior to the amendment of Section 200A of the Act, which came into effect from June 1, 2015. Therefore, the late fee imposed for defaults prior to this date is contrary to law.

What were the facts?

The assessee filed appeals against the levy of late fee under Section 234E for default in furnishing TDS returns within the stipulated time. The assessment years under consideration were prior to June 1, 2015.

What were the issues?

Whether late fee under Section 234E can be levied for defaults in furnishing TDS returns prior to the amendment of Section 200A of the Income Tax Act, 1961.

Which sections of the Income-tax Act were involved?

Section 234E,Section 200A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “G” DELHI

Before: SHRI PRADIP KUMAR KEDIA & SHRI NARENDER KUMAR CHOUDHRY

For Respondent: Shri Jeetandra Kumar Kale, Sr.DR

The captioned appeals have been filed at the instance of the Assessee against the orders of the Commissioner of Income Tax (Appeals)-VIII, New Delhi [‘CIT(A)’ in short] all dated 28.08.2020 concerning levy of late fee of different amount under Section 234E of the Act vide intimation under Section 200A of the Act.

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 fee under Section 234E of the Act for default in furnishing TDS return within time stipulated in law.

4.

The machinary provision of Section 200A of the Act provides for 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

I.T.As No.1781, 1782 & 1783/Del/2020 2 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.

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 order dated 09.07.2021 has decided the issue in favour of the Assessee.

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.

In the result, all the three captioned appeals of the assessee are allowed. Order pronounced in the open Court on 15/02/2023.

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