Vivek J Thar Vs Income Tax Officer (ITAT Mumbai)
ITAT Mumbai held that levy of late filing fees u/s 234 of the Income Tax Act for any period prior to 01/06/2015 would not be sustainable in the eyes of law.
Facts-
The assessee requested for waiver of late filing fees charged u/s 234E of the Act since the same was chargeable only for returns processed on or after 1.6.2015 for the returns filed pertaining to the period after 1.6.2015. However, the ld. AO did not waive the late filing fees u/s 234E of the Act and passed the rectification order u/s 154 of the Act . Further interest u/s 220(2) of the Act was also
levied for delayed payment of interest on late payment and interest u/s 234E of the Act.
Now the short point that arises for our consideration is that whether late filing fee u/s 234E of the Act could be levied for TDS returns filed for the period pertaining to the period prior to 1.6.2015.
Conclusion-
We find that the issue in dispute is no longer res integra in view of the decision of Co-ordinate Bench of this Tribunal in the case of Lawmen Concepts Pvt Ltd vs DCIT CPC – TDS in ITA No. 5140 to 5143/Mum/2018 dated 10.01.2020 for Asst Year 2014-15, wherein the all the judgements on the subject has been considered. It was held that levy of fees u/s 234 for any period prior to 01/06/2015 would not be sustainable in the eyes of law.
Respectfully following the decision of Hon’ble Supreme Court in the case of CIT vs Vegetable Products Ltd reported in 88 ITR 192(SC), we prefer to follow the decision of Hon’ble Karnataka High Court in the case of Fatehraj Singhvi vs Union of India reported in 73 taxmann.com 252 and cancel the levy of late filing fees u/s 234E of the Act for both the quarters for both Form 24Q and 26Q TDS statements.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
These appeals in ITA No.1476/Mum/2022 to 1479/Mum/2022 for A.Y.2013-14 arise out of the order by the ld. Commissioner of Income Tax (Appeals) National Faceless Appeal Centre (NFAC) in appeal No.NFAC/2012-13/10047066, NFAC/2012-13/10047067 NFAC/2012-13/10047068 & NFAC/2012-13/10047069 dated 13/05/2022 (ld. CIT(A) in short) against the order of assessment passed u/s.154 of the Income Tax Act, 1961 (hereinafter referred to as Act) dated 23/04/2021 by the ld. Income Tax Officer, TDS, TDS Ward, Kalyan (hereinafter referred to as ld. AO).
Identical issues are involved in all these appeals and hence they are taken up together and disposed of by this common order for the sake of convenience.
2. The only identical issue to be decided in this appeal is as to whether the ld. CIT(A), NFAC was justified in confirming the rectification order passed by the ld. AO u/s 154 of the Act by levying fees u/s 234E of the Act and consequentially interest u/s 220(2) of the Act in the facts and circumstances of the case.
3. We have heard the rival submissions and perused the materials available on record. We find that assessee was a practicing chartered accountant of a proprietory concern M/s Thar and Co. The assessee was required to file his quarterly TDS returns for quarters 2 and 3 in Form 24Q and Form 26Q for the financial year 2012-13 as under:-
