GHARANAH,GOPALAPURAM vs. DEPUTY COMMISSIONER OF INCOME TAX, CPC-TDS, GHAZIABAD

Brief facts of the case are that for the relevant assessment years 2014-15 (26Q-Q1, 26Q-Q2 & 26Q-Q3) & 2015-16 (26Q-Q1, 26Q-Q2, 26Q-Q3 & 26Q-Q4), the assessee has filed TDS Quarterly return in Form 24Q beyond due date specified under the Act. The Assessing Officer has assessed TDS quarterly returns filed by the assessee under section 200A and levied late filing fee under section 234E of the Act for the delay in filing the said statements for all the assessment years. The assessee has challenged the levy of late filing fee under section 234E before the learned CIT(A), but such appeals have been filed beyond due date specified under the Act. The assessee has filed petition for condonation of delay along with reasons before the CIT(A) and requested to condone the delay in filing appeals to advance substantial justice on the ground that the issues involved on merits regarding levy of late filing fee under section 234E of the Act is now covered in favour of the assessee by various decisions, as per which, there is no provision under the Act to levy late filing fee before amendment to section 200A by Finance Act, 2015, w.e.f. 01.06.2015. The learned CIT(A) dismissed the appeals filed by the assessee on the ground that the assessee failed to adduce any reasons which comes under reasonable cause for condoning delay in filing appeals, but merely stated that the issue on merits is covered in favour of the assessee. The learned CIT(A) further stated that unless the assessee explains the reasons for not filing appeals within time, the delay cannot be condoned merely on the ground the issue is covered in favour of the assessee. While doing so, he relied on certain -449/Chny/2021 :: 3 ::

judicial precedents of the Hon’ble High Courts, including the decision of the Hon'ble Supreme Court in the case of Mani Mandir Sewa Nyas Samiti Ramghat Ayodhya Vs. CIT ([2020]119 taxmann.com 383). Aggrieved by the orders of the CIT(A), the assessee is in appeals before us.

We have heard learned counsels for both sides and perused material available on record along with the order of learned CIT(A). We find that the learned CIT(A) has dismissed the appeals filed by the assessee without condoning the delay in filing appeals, even though the assessee has explained the reasons for delay in filing such appeals. According to the assessee, the assessee had filed appeals beyond due date for the reason that when the Department start levying late fee under section 234E, there was an ambiguity and no clear directions regarding levy of late filing fee under section 234E of the Act for belated filing of TDS returns. However, in the year 2018 various High Courts and Tribunals have taken a clear stand and held that amendment made under section 200A of the Act with effect from 01.06.2015 is held to be having prospective in nature and hence no late fee can be charged u/s.234E of the Act, while processing TDS returns filed prior to 01.06.2015. Based on subsequent judgments of various Courts and Tribunals, the assessee felt that appeal can be filed against intimation issued by the Assessing Officer levying late fee u/s.234E of the Act. We further noted that the assessee has given above explanation before the CIT(A), however, the learned CIT(A) has not given any reason to discard the reasons given by the assessee for belated filing of appeals but simply -449/Chny/2021 :: 4 ::

In the result, all these appeals filed by the assessee are treated as allowed for statistical purposes.