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Facts
The assessee filed appeals against orders levying late fees for belated filing of TDS returns for assessment year 2013-14. The appeals were filed with a delay, which was condoned. The issue involved the levy of late fees under section 234E of the Income Tax Act.
Held
The Tribunal followed the decision of the Madras High Court in the case of True Blue Voice India (P.) Ltd. v. CCIT(TDS), which held that there was no mechanism for determining late fees under section 234E before the amendment to section 200A of the Act, and that the amendment was not retrospective. Therefore, the late fees levied were deleted.
Key Issues
Whether the late fees levied under section 234E of the Income Tax Act for belated filing of TDS returns are valid, considering the provisions and amendments thereof.
Sections Cited
154, 200A, 206CB, 234E
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Before: Shri S.S. Viswanethra Ravi & Shri S.R. Raghunatha
O R D E R
PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER:
Both the appeals filed by the assessee are directed against separate orders both dated 15.09.2025 passed by the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [NFAC], Delhi for the assessment year 2013-14 [26Q – Q3 & 26Q – Q4].
Since issues raised in these the appeals of the assessee are similar based on the same identical facts, with the consent of both the parties, we proceed to hear the appeals together and pass consolidated order for the sake of convenience.
First, we shall take appeal in [26Q for Q3] AY 2013-14 for adjudication.
We find that this appeal is filed with a delay of 10 days. The assessee filed an affidavit for condonation of delay stating the reasons. Upon hearing both the parties and on examination of the said affidavit, we find the reasons stated by the assessee are bonafide, which really prevented in filing the appeal in time. Thus, the delay is condoned and admits the appeal for adjudication.
At the outset, we note that the Assessing Officer levied late fees of ₹.2,66,040/- for 26Q – quarter-3 vide his order dated 21.02.2025 under section 154 r.w.s. 200A/206CB of the Income Tax Act, 1961 [“Act” in short], which were challenged before the ld. CIT(A), wherein, by passing exparte order, he confirmed the order of the Assessing Officer.
Having heard both the parties, we note that the Assessing Officer levied late fees of ₹.2,66,040/- vide his order dated 21.02.2025 under section 154 r.w.s. 200A/206CB of the Act for 26Q – quarter-3 at ₹.2,66,040/- for belated filing of Form 26Q – Quarter-3. The ld. CIT(A) confirmed the same. We have perused the case law relied on by the ld. AR in the case of True Blue Voice India (P.) Ltd. v. CCIT(TDS) 472 ITR 480 (Mad), wherein, substantial question of law on similar facts has been raised. The Hon’ble High of Madras was pleased to hold that there was no mechanism available for determination of late fee payable under section 234E of the Act at the time of processing TDS statements and thus, amendment was inserted under sub-section (1)(c) of section 200A of the Act w.e.f. 01.06.2015 for computation of fee payable under section 234E of the Act at the time of processing of TDS statement under section 200A of the Act. The Hon’ble High Court further held that the said amendment under sub-section (1)(c) of section 200A of the Act is not retrospective. Respectfully following the above decision of the Hon’ble High Court of Madras in the case of True Blue Voice India (P.) Ltd. v. CCIT(TDS) (supra), the late fee levied by the CPC for 26Q – Q-3 under section 234E of the Act for the FY 2012-13 relevant to AY 2013-14 and confirmed by the ld. CIT(A) stands deleted. Thus, the grounds raised by the assessee are allowed.
– AY 2013-14 [26Q -Q4] 7. We find that this appeal is filed with a delay of 10 days. The assessee filed an affidavit for condonation of delay stating the reasons. Upon hearing both the parties and on examination of the said affidavit, we find the reasons stated by the assessee are bonafide, which really prevented in filing the appeal in time. Thus, the delay is condoned and admits the appeal for adjudication.
We find that the facts relating to levy of late fee for belated filing of TDS returns in Form 26Q for the quarter-4 is similar to the TDS returns in Form 24Q for the quarter-4 in wherein, the late fee levied under section 234E of the Act is deleted by following the decision of the Hon’ble High Court of Madras in the case of True Blue Voice India (P.) Ltd. v. CCIT (supra) in the above mentioned paragraphs and the same finding is applicable equally to the case in hand in [26Q for Q4]. Thus, the grounds raised by the assessee are allowed.