SRI VASAVI EDUCATIONAL SOCIETY,MACHILIPATNAM vs. THE INCOME TAX OFFICER, TDS WARD-1, VIJAYAWADA

ITA 285/VIZ/2026Status: DisposedITAT Visakhapatnam19 August 2026AY 2013-1414 pages
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What did the Tribunal hold?

The Tribunal held that the levy of late filing fee under Section 234E for TDS returns pertaining to periods prior to June 1, 2015, is not sustainable. The reasoning was that the enabling provision for computing such fees, by way of amendment to Section 200A(1)(c), was introduced only effective June 1, 2015. Therefore, the charging section, Section 234E, could not be enforced for periods prior to this date, irrespective of when the returns were filed or processed. The Tribunal followed the judgments of the Hon'ble Karnataka High Court in Fatheraj Singhvi vs. Union of India, the Hon'ble Kerala High Court in United Metals vs. ITO, and its own coordinate bench decisions. Consequently, the Assessing Officer was directed to delete the late filing fee levied under Section 234E. Regarding the interest under Section 201(1A), the assessee did not press the ground, and it was dismissed as not pressed. The ratio decidendi is that the mechanism for levying late fees under Section 234E, as incorporated into Section 200A, has prospective effect from June 1, 2015, and cannot be applied retrospectively to defaults occurring before that date.

What were the facts?

The assessee, Sri Vasavi Educational Society, filed TDS returns (Forms 24Q and 26Q) for Assessment Years 2013-2014 and 2014-2015 beyond the statutory due dates. The CPC processed these returns and levied late filing fees under Section 234E and interest under Section 201(1A) of the Income Tax Act, 1961. The assessee challenged these levies before the CIT(A), arguing that Section 200A was amended effective June 1, 2015, and prior to this amendment, there was no enabling provision to compute and levy late filing fees. The CIT(A) rejected this argument, upholding the Assessing Officer's action. The assessee then appealed to the ITAT Visakhapatnam.

What were the issues?

1. Whether the Assessing Officer can levy late filing fee under Section 234E of the Income Tax Act, 1961, for TDS returns pertaining to periods prior to June 1, 2015, even if filed or processed after that date? (Question of law turning on Section 234E and Section 200A). Assessee's Contention: The assessee argued that Section 200A was amended on June 1, 2015, and prior to this amendment, there was no enabling provision for computing interest and levying late filing fees under Section 234E. They relied on the ITAT Visakhapatnam's decision in Government Polytechnic, Visakhapatnam vs. ITO and the Karnataka High Court's judgment in Fatheraj Singhvi vs. Union of India. Revenue's Contention: The revenue contended that Section 234E mandates a late filing fee of Rs. 200/- per day for delayed TDS returns, and the Assessing Officer correctly computed this fee, which was upheld by the CIT(A). The revenue relied on the orders of the authorities below. 2. Whether the levy of interest under Section 201(1A) of the Income Tax Act, 1961, is sustainable? (Question of law). Assessee's Contention: The assessee stated they did not wish to press this ground and requested it be decided as per law. Revenue's Contention: Not recorded.

Which sections of the Income-tax Act were involved?

Section 234E,Section 201(1A),Section 200A,Section 195,Section 154

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, VISAKHAPATNAM DB BENCH VISAKHAPATNAM

Before: SHRI VIJAY PAL RAO & SHRI MANJUNATHA G.

Hearing: 13.08.2026Pronounced: 19.08.2026

PER MANJUNATHA G. A.M. : The above two appeals are filed by the assessee against the separate orders both dated 21.01.2026 of the learned Addl./JCIT(A)-4, Delhi, for the assessment years 2013-

2 ITA.Nos.285 & 286/Viz./2026 2014 and 2014-2015. Since common issues are involved in both these appeals, these appeals were heard and are disposed of by this single consolidated order for the sake of convenience and brevity.

2.

Brief facts of the case are that the assessee filed quarterly TDS returns in Forms-24Q and 26Q beyond the

The order continues below.

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