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Facts
The assessee, a unit of the Agricultural Department, Government of Kerala, filed TDS statements belatedly for AY 2022-23 and 2023-24, resulting in a late fee levy of Rs. 53,400 under Section 234E. The CIT(A) dismissed the assessee's appeal, holding the levy mandatory, prompting further appeals to the Tribunal.
Held
The Tribunal dismissed the appeals, ruling that the levy of late fee under Section 234E for delayed TDS statements is automatic and mandatory. It clarified that the provisions for reasonable cause under Section 273B do not apply to the levy of late fees under Section 234E, thus finding no merit in the assessee's contention.
Key Issues
Whether the levy of late fee under Section 234E for delayed TDS statements is automatic and mandatory, and if reasonable cause under Section 273B of the Income Tax Act applies to such levy.
Sections Cited
200A, 234E, 200(3), 273B
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO, AM & SHRI SOUNDARARAJAN K., JM
IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH
BEFORE SHRI INTURI RAMA RAO, AM AND SHRI SOUNDARARAJAN K., JM
ITA Nos. 723 & 746 to 749/Coch/2024 Assessment Years: 2022-23 & 2023-24 Krishibhavan Andhoor .......... Appellant Kannur University Campus P.O. Kannur 670567 [PAN: CHNKO3182E] Vs. The Income Tax Officer (TDS) .......... Respondent Kannothumchal, Kannur Appellant by: ------- None ------- Respondent by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 01.01.2025 Date of Pronouncement: 21.01.2025
O R D E R Per: Inturi Rama Rao, AM These appeals filed by the assessee are directed against the orders of the National Faceless Appeal Centre, Delhi [CIT(A)] all dated 26.06.2024 for Assessment Years (AYs) 2022-23 & 2023-24. Since identical facts and issues are involved, these appeals are heard together and disposed of by the common order for the purpose of convenience.
For the purpose of brevity the facts adverted in ITA No. 723/Coch/2024 for AY 2022-23 are stated herein. The appellant, a
2 ITA Nos. 723& 746 to 249/Coch/2024 Krishibhavan Andhoor unit of the Agricultural Department, Government of Kerala, filed TDS statement for the first quarter of FY 2021-22 and the same was processed on 03.10.2022 u/s. 200A of the Income Tax Act, 1961 (the Act) and levied late fee of Rs.53,400/- u/s. 2334E of the Act for delayed filing of the TDS statements. The said late fee was levied at Rs. 200 per day from the due date for filing the TDS statement to the actual date of filing the TDS.
Being aggrieved by levy of late fee charges, an appeal was filed before the CIT(A) stating that the delay had occurred on account of unawareness of the Accountant, who was handling the tax matters and also on account of mistake in updating the TAN, etc. However, the CIT(A) dismissed the appeal by holding that levy of late fee as prescribed u/s. 234E of the Act is mandatory. Accordingly, the CIT(A) dismissed the appeal.
Being aggrieved, appellant is in appeal before us in the present appeal.
When the appeal was called nobody attended despite due service of notice of hearing. Therefore after hearing the learned Sr. DR, I proceeded to dispose the same.
The only issue arises for our consideration is whether the Income Tax Officer (TDS), Kannur (hereafter “the AO”) is justified in levying late fee u/s. 234E of the Act. The provisions of section 200(3) of the Act require a person to deliver a statement of tax deducted at
3 ITA Nos. 723& 746 to 249/Coch/2024 Krishibhavan Andhoor source within the period specified therein. If the statement is not furnished within the due date, late fee on the tax deductible at source is charged as provided u/s. 234E of the Act. The levy of late fee is not saved by any reasonable cause as evident from the reading of the provisions of section 273B of the Act, which does not include the reasonable cause for levy of late fee u/s. 234E of the Act. Reasonable cause for delay cannot spare levy of late fee. In the present case no challenge was laid questioning the very levy of late fee. Therefore, on conjoinet reading of sections 234E and 273B, it would be clear that levy of late fee u/s. 234E of the Act is automatic and, therefore, we do not find any merit in the appeal filed by the appellant.
We adopt the above detailed discussion mutatis mutandis to all the other appeals. Hence, all the appeals filed by the assessee are dismissed. Order pronounced in the open court on 21st January, 2025. Sd/- Sd/- (SOUNDARARAJAN K.) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER Cochin, Dated: 21st January, 2025 n.p. Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File Assistant Registrar ITAT, Cochin