Hi Techno Control System Pvt. Ltd. Vs DCIT (ITAT Mumbai)
TDS Delay After 01.06.2015 Attracts Mandatory 234E Late Fee- Default for Q3 FY 2015–16 After Amendment is Valid- ITAT Mumbai
Mumbai ITAT has upheld levy of late fee u/s 234E r.w.s. 200A on delayed filing of TDS statements, holding that since the default pertained to a period after 01.06.2015, the provisions were applicable & levy was valid.
Late fee had been levied through intimations u/s 154 & u/s 200A/206CB dated 30.03.2017, amounting to ₹85,200 for delay in filing TDS statement for Q3 of FY 2015–16 (AY 2016–17).
When the matter came before Tribunal, it was noticed that the default related to the quarter 01.10.2015 to 31.12.2015. Tribunal observed that the enabling provision u/s 200A(1)(c), which allowed adjustment of late fee while processing TDS statements, came into force w.e.f. 01.06.2015. Therefore, levy of late fee on defaults after this date was within the ambit of law.
Assessee relied upon rulings of ITAT Delhi in Bathline India Pvt. Ltd. & Karnataka High Court in Fatehraj Singhvi & Ors. vs. UOI, which had held that late fee u/s 234E was not leviable for periods prior to 01.06.2015. Tribunal distinguished these precedents, noting that they applied only to defaults prior to 01.06.2015, whereas in the present case, the default arose post-amendment.
