SWARUP HOSPITALS PRIVATE LIMITED,HYDERABAD vs. ADDL. COMMISSIONER OF INCOME TAX, TDS RANGE-2, HYDERABAD

All these appeals are filed against the order of the CIT (A) confirming the late fee levied by the AO u/s 234E of the I.T. Act. The learned CIT (A) dismissed the appeals on the ground that the appeals were time barred. The assessee has now filed the appeals before us raising the following grounds: “1. The learned CIT (A) has erred in facts and law while disposing off the appeal. 2. The learned CIT (A) has erred in facts and law while rejecting the reasons for condoning the delay in filing of an appeal and ignoring that the intimation passed

Having heard both the parties and having considered the material on record, we find that the CIT (A) has refused to condone the delay even though the assessee’s case is covered in favour of the assessee on merits. We find that the machinery provision u/s 200A has come into force w.e.f. 1.6.2015 and in a number of cases, the Coordinate Bench of this Tribunal has held that the said machinery provisions have come into effect only after 1.6.2015 and therefore, they cannot be applied to the earlier A.Ys. For the sake of ready reference, the relevant paras in the case of Terra Infra Development Ltd vs. ITO (TDS) Ward 2(3) Hyderabad in ITA Nos.1876 & 1875/Hyd/2017, dated 03.10.2018 ae as under: “We find that though the provisions for levy of fee in certain cases has been brought into the statute book w.e.f. 1.7.2012, it has been brought under the purview of section 200A only w.e.f. 1.6.2015. Therefore, as rightly held by the Coordinate Bench in the case of M/s. Sonalac Paintings & Coatings Ltd (cited Supra), we hold that the interest u/s 234E cannot be levied in respect of TDS returns filed prior to 1.6.2015. Respectfully following the same, assessee’s appeals for both the A.Ys are allowed”.

Respectfully following the same, we hold that the late fee is not leviable in the period prior to 1.6.2015 and therefore,

In the result, assessee’s appeals are allowed.