Balram Corporate Services Pvt Ltd Vs ITO (ITAT Bangalore)
Introduction: In an important decision, the ITAT Bangalore adjudicated on an appeal brought by Balram Corporate Services Pvt Ltd against the orders of CIT(A) pertaining to Assessment Years 2013-14 to 2015-16. The case revolved around the issue of the levy of late fee charges under Section 234E of the Income Tax Act, 1961.
Analysis: The assessee contended that the CIT(A) erred in confirming the levy of fee/penalty/interest without taking into account the facts of the case, relevant judicial orders, and the non-retrospective applicability of the amended provision. The Central Processing Centre (CPC) had levied late fees under Section 234E of the Act due to the belated filing of the TDS statement in Form No.24Q for quarter-4. However, the ITAT observed that there was no record of the assessee receiving an intimation under Section 200A of the Act. The CIT(A) had dismissed the appeals by stating that they had been preferred against the intimation of demand, not the order under Section 200A of the Act.
Conclusion: The ITAT held that the CIT(A) should have decided the cases on merits rather than dismissing them in limine. Importantly, it was concluded that the charging of late fees under Section 234E of the Act was only applicable from 01.06.2015 and not retrospectively. Thus, the late fee charges for the assessment years 2013-14 to 2015-16 were deleted. The case serves as a crucial precedent in understanding the non-retrospective applicability of late fee charges under the Act.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
These appeals at the instance of the assessee are directed against three orders of CIT(A) (all dated 17.03 .2023), passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Years are 2013-14 to 2015-16.
2. Common issues are raised in these appeals, hence the appeals were heard together and are being disposed off by this consolidated order. Identical grounds are raised and they read as follows:
1. The impugned Order u/s. 250 of the Act dated: 17-03-2023 passed by the National Faceless Appeal Centre, Delhi is opposed to law, facts and circumstances of the case.
2. The Ld. CIT(A) has erred in confirming the levy of fee/penalty/interest without appreciating the facts and circumstances of the case.
3. The Ld. CIT(A) has erred in confirming the levy of fee/ penalty/ interest without appreciating the judicial orders of the Jurisdictional High Court/Hon ‘ble ITA T.
4. The Ld. CIT(A) has erred in confirming the levy of fee/penalty/interest without appreciating the fact that the levy not applicable since the amended provision is not applicable retrospectively.
3. Brief facts of the case are as follows:
For Assessment Years 2013-14, 2014-15 and 2015-16, assessee filed TDS statement in Form No.24Q for quarter-4 belatedly. The Central Processing Centre (CPC), while processing the TDS statement under section 200A of the Act, levied late fee under section 234E of the Act. The details of the late fees under section 234E of the Act, interest and the total amount are as follows:
