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Income Tax Appellate Tribunal, DELHI BENCH: ‘G’, NEW DELHI
Before: SHRI SAKTIJIT DEY & DR. BRR KUMARR
ORDER PER SAKTIJIT DEY: JUDICIAL MEMBER: This is an appeal by assessee against order dated 27.04.2018 of learned Commissioner of Income-Tax(Appeals)-35, New Delhi.
Though, in a common order, learned Commissioner (Appeals) has disposed of appeals for assessment years 2013-14 to 2016-17, however, presently we are concerned with assessment year 2016- 17.
When the appeal was called for hearing, none appeared on behalf of the assessee.
Considering the nature of dispute and prevailing legal position 3. on the issue, we proceed to dispose of the appeal ex parte qua the assessee after hearing the learned Departmental Representative and based on material available on record.
The dispute in the present appeal is confined to levy of fee under Section 234E of the Income-Tax Act, 1961 for delay in furnishing TDS statement for the financial year 2015-16 corresponding to the assessment year 2016-17.
We have heard learned Departmental Representative and perused the material on record. As could be seen from the facts on record, there was delay in remittance of tax deducted at source (TDS) by the assessee resulting in delay in furnishing the TDS statements pertaining to financial years 2012-13 to 2015-16. While processing the TDS statements furnished by assessee, the assessing officer levied fee under Section 234E of the Act for delay in depositing TDS and furnishing TDS statements. Fee charged under Section 234E of the Act for financial year 2015-16 was to the tune of Rs.3,75,600.
Assessee challenged the levy of fee under Section 234E of the Act by filing appeals before learned Commissioner (Appeals). Relying upon the decision of the Hon'ble High Court of Gujarat in case of Rajesh Rajiv Kourani Vs. Union of India ( 83 Taxmann.com 137 ), learned Commissioner (Appeals) upheld the levy of fee under Section 234E of the Act, even, for the period prior to 01.06.2015, the date on which amendment to Section 200A was made enabling the assessing officer to levy fee under Section 234E of the Act. Be that as it may, in the present appeal, we are concerned with levy of fee for the financial year 2015-16. Therefore, even accepting that the amendment made to Section 200A is prospective, still, levy of fee under Section 234E of the Act is possible as the period involved is post-amendment to Section 200A of the Act. Now, it is fairly well settled that levy of fee under Section 234E of the Act is not of penal nature. This is a fee levied on the assessee for availing the facility of filing the TDS statement with delay. Further, it is fairly well settled that it is mandatory upon the assessing officer to levy fee under Section 234E of the Act while processing the TDS statements under Section 200A of the Act after the amendment to the provisions from Ist June 2015.
In the aforesaid view of the matter, we do not find any valid reason to interfere with the decision of learned Commissioner (Appeals). Ground is dismissed.
In the result, the appeal is dismissed.