Gopuram Enterprises Pvt Ltd. Vs ITO (Madras High Court)
Legal uncertainty over Sec 234E acknowledged: Delay in Appeals condoned by Madras HC
The judgment pertains to a batch appeals filed by assessee against a common order passed by the ITAT which had dismissed the appeals solely on the ground of delay in filing, without examining the merits of the case. The company approached the Madras High Court seeking condonation of delay and a direction for the ITAT to adjudicate the matter substantively. The appeals relate to the levy of interest u/s 234E, which concerns fees for delay in filing TDS returns.
The substantial questions of law admitted for consideration by the HC are whether the Tribunal was right by not :
a) condoning the delay, either it is inordinate delay or delay for few days, ignoring the settled laws.
b) condoning the delay, taking into account Sec 234 E is effective from 01/06/2015, whereas in the given case, the Assessment Year is 2013-14.
c) considered that, no prejudice to the other side will occur by condoning the delay.
The High Court categorized the appeals into two groups(1) Where delay was significant (ranging up to 2408 days) and undisputed. ( 2) Where the Department disputed the delay, but the assessee claimed a shorter delay (260 days), computed from the date of receipt of rectified statements issued u/s 154.
