Tanisujan Infra Private Limited Vs ACIT (ITAT Bangalore)
Assessee filed quarterly TDS statements in Form 26Q for Q2, Q3 & Q4 of FY 2012-13 belatedly. CPC issued intimation u/s 200A levying late fee of ₹1,58,800 u/s 234E. On appeal, CIT(A) upheld levy relying on Madras HC ruling that 234E itself created liability from 01.07.2012 & section 200A(1)(c) was only a recovery mechanism.
Before Tribunal, Assessee relied on Karnataka High Court decision in Fatheraj Singhvi v. UOI (289 CTR 602), which held that in absence of machinery provision prior to 01.06.2015, late fee u/s 234E could not be levied.
Tribunal observed that though section 234E was introduced by Finance Act, 2012, it became operational only w.e.f. 01.06.2015 when section 200A(1)(c) was amended to include computation of late fee while processing TDS statements. Prior to this, there was no enabling mechanism, hence levy was invalid. By respectfully following jurisdictional HC in Fatheraj Singhvi & SC in B.C. Srinivasa Shetty (21 CTR 138), Tribunal held that levy of 234E fee before 01.06.2015 was without authority of law. Levy of late fee u/s 234E prior to 01.06.2015 is unsustainable.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
This appeal at the instance of the assessee is directed against the order of ld. CIT(A)/NFAC dated 21.3.2025 vide DIN & Order No. ITBA/NFAC/S/250/2024-25/1074814958(1) for the assessment year 2012-13 passed u/s 250 of the Income Tax Act, 1961 (in short “The Act”.)
