MAHESH RAJU MANSHARAMANI,PUNE vs. ITO WARD 3, PUNE

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.2888/PUN/2025 िनधा�रण वष� / Assessment Year : 2015-16 Mahesh Raju Mansharamani, Vs. ITO, Ward-3, Pune. Flat No.17 Sukhwani Heights Bhawani Peth, Pune- 411042. PAN : AMPPM7987D Appellant Respondent Assessee by : Shri Bharat Shah Revenue by Shri Amit Bobde : Date of hearing 11.03.2026 : Date of pronouncement : 08.06.2026 आदेश / ORDER PER VINAY BHAMORE, JM: This appeal filed by the assessee is directed against the order dated 20.08.2025 passed by Ld. Addl./JCIT(A)-1, Visakhapatnam [‘Ld. CIT(A)’] for the assessment year 2015-16. 2. The appellant has raised the following grounds of appeal :- “1) On the facts and in the circumstances of the case and in law, the authorities below erred in levying and confirming the late filing fees under section 234E of the Income Tax Act. The late filing fees so levied be cancelled. Just and proper relief be granted to the assessee in this respect. 2) On the facts and in the circumstances of the case, and in law and also as per various judicial pronouncements, the authorities below erred in levying and confirming the late filing fees U/s 234E of the Income Tax Act, 1961, for a period prior to 01.06.2015, as the TDS return period is 1 quarter of the Financial Year 2014-15. Just and proper relief be granted to the assessee in this respect.

2 ITA No.2888/PUN/2025 3) The Appellant prays to be allowed to add, amend, modify, rectify, delete, raise any ground of appeal before or at the time of hearing.” 3. Facts of the case, in brief, are that the assessee is an individual & claims to be a NRI. The assessee purchased an immovable property i.e. a flat from Mr. Jugal Kishore Deddee, a NRI, for Rs.68,00,000/- on 23.04.2014. The assessee was required to deduct TDS @ 20.06% which was deducted and paid on 27.06.2014. However, the TDS return in Form 27Q was filed belatedly i.e. on 09.07.2021. Vide order dated 12.07.2021, the CPC (TDS) processed the TDS statement u/s 200A/206CB of the IT Act and levied late fee of Rs.5,10,200/- u/s 234E of the IT Act. 4. Being aggrieved with the levy of late fee of Rs.5,10,200/- u/s 234E of the IT Act, the assessee preferred an appeal before Ld. CIT(A). After considering the reply and submissions of the assessee, Ld. CIT(A) confirmed the imposition of late fee u/s 234E of the IT Act and dismissed the appeal filed by the assessee by relying on the judgement of Hon’ble High Court of Madras in the case of Conceria International (P.) Ltd. vs. ITO [2023] 157 taxmann.com 335 (Madras). 5. It is the above order against which the assessee is in appeal before this Tribunal.

3 ITA No.2888/PUN/2025 6. We have heard Ld. Counsels from both the sides and perused the material available on record. In this regard, we find that the assessee placed reliance on coordinate bench decision passed in the case of C. & M. Farming Ltd. vs ACIT, CPC, TDS, ITA Nos.2008/PUN/2017 to 2017/PUN/2017 order dated 06-11-2019 wherein the Tribunal deleted the late fee levied u/s 234E of the IT Act for Asstt Year 2013-14 since the TDS quarterly statement was furnished on 05-02-2014 i.e. before 01-06-2015. Apart from above decision, assessee also placed reliance on coordinate bench decision passed in the case of Shri Thomas Abraham vs. The ITO, TDS, ITA Nos.387 to 390/Bang/2022 order dated 29-07-2022 wherein the Tribunal deleted the late fee levied u/s 234E of the IT Act since the TDS returns were filed prior to 01-06-2015. 7. In the instant case in hand, the TDS statement was furnished with a delay of 2551 days & admittedly after 01-06-2015. Under the above facts & in the circumstances of the case, the case law relied on by the assessee are of no use to him since the facts are different. However, we find a coordinate bench of this Tribunal in the case of Vidhyasagar Girls High School vs. ITO TDS Ward, Nanded in ITA Nos.2207 & 2208/PUN/2025 order dated

4 ITA No.2888/PUN/2025 12.02.2026 following another decision of coordinate bench of this Tribunal in the case of Shrikrishna Lakshmi Narayan Thakur ITA Nos.2299 to 2307/PUN/2024 order dated 23-01-2025 has directed to computed the late fee only from 01.06.2015 till the date of filing of TDS return by observing as under :- “8. We have heard Ld. counsels from both the sides and perused the material available on record. In this regard, we find that admittedly the assessee has furnished TDS quarterly returns belatedly. However, at the same time, we are also aware that the amendment to clause (c) of section 200A of the IT Act which provides for levy of late fee in accordance with section 234E of the IT Act was brought on the Statute w.e.f. 01.06.2015 and is held to be prospective in nature by various coordinate benches of this Tribunal and therefore late fee u/s 234E of the IT Act has to be calculated from 01.06.2015 only and not for the period prior to this date. In this regard, we find support from the coordinate bench decision passed in the case of Shrikrishna Lakshmi Narayan Thakur ITA Nos.2299 to 2307/PUN/2024 order dated 23-01-2025 wherein the Tribunal directed to calculate late fee u/s 234E of the IT Act only from 01-06-2015 by observing as under :- “5. We have heard both the parties and perused the records placed before us. The solitary issue in this batch of appeals is against the levy of fee u/s.234E of the Act by CPC for delay in filing the TDS quarterly returns and Ld. CIT(A)/NFAC confirming such levy of fee u/s.234E for filing the Quarterly returns after the due date. 6. We observe that the issue of levy of fee u/s.234E is no more res integra by virtue of several decisions rendered by this Tribunal on this very issue. It shows that the late fee u/s.234E has been imposed for the delay in furnishing the statements for quarters, in the returns processed u/s.200A of the Act prior to 01.06.2015 and post 01.06.2015. As regards the fate of fees levied u/s.234E of the Act for the returns filed and processed before 01.06.2015, we find the Coordinate Benches of this Tribunal after considering the judicial pronouncements have been taking a consistent view that the amendment brought in Finance Act, 2015 w.e.f. 01.06.2015 under Section 200A (clause (c)] of the Act is prospective in nature thereby empowering the Revenue authorities to charge fee u/s.234E of the Act only after 01.06.2015. In that view of the matter, Revenue authorities are empowered to impose such late fee

5 ITA No.2888/PUN/2025 u/s.234E only for the default committed after 01.06.2015 and not prior to that. The Hon’ble Kerala High Court in Olari Little Flower Kuries Pvt. Ltd. Vs. Union of India and others (2022) 440 ITR 26 (Kerala) has affirmed the non-imposition of fee for the period prior to 01.06.2015. Similar view has been taken in Jiji Varghese VS. ITO(TDS) & Ors. (2022) 443 ITR 267 (Ker) holding that no fee u/s.234E can be imposed for the periods of the respective A.Ys. prior to 1st June, 2015. Similar view was also taken by this Tribunal in the case of Dadasaheb Vitthalrao Urhe Vs. ITO (TDS), Pune in ITA Nos.1286 to 1309/PUN/2023, dated 29.02.2024. Thus, it is seen that the issue raised in the following appeals is covered in favour of the assessee as the returns u/s.200A(c) were processed before 01.06.2015. Sl. ITA No(s). Asst. Quar Form Order date No Year ter . 1 ITA Nos.2299/PUN/2024 2013-14 Q4 26Q 20.01.2014 2 ITA No.2300/PUN/2024 2014-15 Q1 26Q 15.03.2014 3 ITA No.2301/PUN/2024 2014-15 Q2 26Q 15.03.2014 4 ITA No.2302/PUU/2024 2014-15 Q3 26Q 15.03.2014 5 ITA No.2303/PUN/2024 2014-15 Q4 26Q 11.10.2014 6 ITA No.2165/PUN/2024 2013-14 Q3 26Q 20.01.2014 7 ITA No.2166/PUN/2024 2013-14 Q2 26Q 20.01.2014 8 ITA No.1322/PUN/2024 2013-14 Q2 26Q 20.01.2014 7. Following the precedent, we overturn the impugned orders on this sole issue and allow the effective grounds of appeal raised by the assessee in all these eight appeals. 8. So far as the following appeals corresponding to respective quarter are concerned, the late fee u/s.234E has been imposed for the delay in furnishing the statements and the returns have been processed u/s.200A of the Act after 01.06.2015. In light of our observation above, it is held that penalty u/s.234E is leviable since amendment brought in Finance Act, 2015 w.e.f. 01.06.2015 under Section 200A (clause (c)] of the Act is prospective in nature and Revenue authorities are empowered to levy penalty u/s.234E. However, penalty u/s.234E has to be computed from 01.06.2015 till the processing of the return for which necessary calculation to be made at the end of the concerned Revenue authority. The

6 ITA No.2888/PUN/2025 details of appeals whose returns have been processed after 01.06.2015 are given below : Sl. ITA No(s). Asst. Quar Form Order date No. Year ter 1 ITA Nos.2304/PUN/2024 2015-16 Q1 26Q 27.10.2015 2 ITA No.2305/PUN/2024 2015-16 Q4 26Q 28.10.2015 3 ITA No.2306/PUN/2024 2015-16 Q3 26Q 24.10.2015 4 ITA No.2307/PUU/2024 2015-16 Q2 26Q 24.10.2015 5 ITA No.2308/PUN/2024 2016-17 Q1 26Q 25.08.2016 Accordingly, the grounds of appeal raised by the assessee in respect of the above-mentioned five appeals are partly allowed. 9. In the result, all the appeals of the assessee are disposed off as per terms indicated above.” 9. Respectfully following the above decision passed by a coordinate bench of this Tribunal in the case of Shrikrishna Lakshmi Narayan Thakur (supra), we are of the considered opinion that the late fee u/s 234E of the IT Act in the instant case has to be calculated only from 01.06.2015 till the filing of the TDS return for which necessary calculation to be made at the end of the concerned revenue authority. Accordingly, we deem it appropriate to set-aside the order passed by Ld. CIT(A) and restore the matter back to the file of the Jurisdictional TDS Officer with a direction to re-calculate late fees u/s 234E only w.e.f. 01.06.2015 till the date of filing of relevant TDS return/statement. Thus, the grounds of appeal raised by the assessee are partly allowed.” 8. Respectfully following the above decision passed by a coordinate bench of this Tribunal in the case of Vidhyasagar Girls High School (supra), we are of the considered opinion that the late fee u/s 234E of the IT Act in the instant case has to be calculated only from 01.06.2015 till the filing of the TDS return for which necessary calculation to be made at the end of the concerned

7 ITA No.2888/PUN/2025 revenue authority. Accordingly, we deem it appropriate to set- aside the order passed by Ld. CIT(A) and restore the matter back to the file of the Jurisdictional TDS Officer with a direction to re- calculate late fees u/s 234E only w.e.f. 01.06.2015 till the date of filing of relevant TDS return/statement. Thus, the grounds of appeal raised by the assessee are partly allowed for statistical purposes. 9. In the result, the appeal filed by the assessee is partly allowed for statistical purposes. Order pronounced on this 08th day of June, 2026. Sd/- Sd/- (R. K. PANDA) (VINAY BHAMORE) VICE PRESIDENT JUDICIAL MEMBER पुणे / Pune; �दनांक / Dated : 08th June, 2026. Sujeet/DOC Digitally signed by Sujeet Kumar Sujeet Kumar Sharma Sharma Date: 2026.06.09 आदेश क� �ितिलिप अ�ेिषत / Copy of the Order forwarded to : 11:28:39 +05'30' अपीलाथ� / The Appellant. 1. ��यथ� / The Respondent. 2. 3. The Addl./JCIT(A)-1, Visakhapatnam. 4. The Pr. CIT/CIT concerned. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, “B” ब�च, 5. पुणे / DR, ITAT, “B” Bench, Pune. गाड� फ़ाइल / Guard File. 6. आदेशानुसार / BY ORDER, // True Copy // Assistant Registrar आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.