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Facts
The assessee's appeals arise from orders levying late fee under section 234E of the Income Tax Act, 1961 for periods prior to June 1, 2015. The assessee contended that the levy was unjustified. The Revenue argued for the retrospective applicability of the provision.
Held
The Tribunal noted that various judicial precedents, including decisions of other tribunals, have held that section 234E of the Act is not applicable to assessment years prior to June 1, 2015. The Tribunal followed these precedents and found no valuable guidance from the jurisdictional High Court to the contrary.
Key Issues
Whether the levy of late fee under Section 234E of the Income Tax Act, 1961 is applicable for periods prior to 01.06.2015.
Sections Cited
200A, 234E
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Income Tax Appellate Tribunal, DELHI BENCH: ‘E’ NEW DELHI
Before: SHRI SATBEER SINGH GODARA
ORDER PER BENCH: These assessee’s five appeals 3299, 3300, 3301 & 3302/Del/2025, for assessment years 2015-16, 2013-14, 2013- 14, 2014-15, 2014-15 & 2014-15, arise against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s orders, all dated 21.03.2025, having DINs and orders no. ITBA/NFAC/S/250/2024-25/1074831584(1), ITBA/NFAC/S/250/2024-25/1074830299(1), ITBA/NFAC/S/250 /2024-25/1074829433(1), ITBA/NFAC/S/250/2024-25/ 1074830787(1) and ITBA/NFAC/S/250/2024-25/1074831139(1), involving proceedings under section 200A of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’), respectively. Cases called twice. None appears at the assessee’s/appellant behest. It is accordingly proceeded ex-parte.
We next note with the able assistance coming from the Revenue side that the assessee’s “lead” appeal raises the following substantive grounds: 1. That on the facts and circumstances in law, the Ld. AO is not justified in levying the late fee under section 234E of the Income Tax Act, 1961 for the period prior to 01.06.2015.
2. That on the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in dismissing the appeal.
Learned departmental representative vehemently argues that in light of the CIT(A)’s detailed discussion placing reliance upon the case law Conceria International Pvt. Ltd. v. ITO (2024) 464 ITR 92 (Mad.) that both the lower authorities herein have rightly levied section 234E late filing fee in the assessee’s/deductor’s cases. And that the impugned statutory provision has already been held applicable in all preceding period before 01.06.2015 as well in their lordships’ decision.
We have given our thoughtful consideration to the assessee’s and the Revenue’s respective pleadings. We note that in various other judicial precedents i.e. Lingeswara Creations vs. Principal Chief Commissioner of Income Tax. (2024) 168 taxmann.com 383 (Mad.), Nila Bakers and Confectionaries (I) Pvt. Ltd. Vs. ITO (2022) 139 taxmann.com 535 (Ker) as well as this tribunal’s in Vkare Bio Sciences (P.) Ltd. vs. DCIT [2022] 134 taxmann.com 7 (Delhi - Trib.) have adjudicated the very issue in the assessee’s favour thereby holding that the above filing fee provision in section 234E of the Act does not cover any assessment year prior to 01.06.2015. No valuable guidance has admittedly come from hon’ble jurisdictional
3 | P a g e high court. That being the case, we hereby quote Commissioner of Income-Tax Vs. Vegetable Products Ltd. [1971] 80 ITR 14 (Kol.) to decide the instant issue of retrospective applicability of section 234E of the Act in assessee’s favour in very terms to delete the impugned late filing fee levied by both the learned lower authorities. This appeal is allowed. Same order to follow in the assessee’s remaining four appeals 3300, 3301 & 3302/Del/2025.