Case Law Details
Sumel Heights Pvt. Ltd Vs ITO (ITAT Delhi)
The machinery provision of Section 200A of the Act provides for processing of statement of tax deducted at source which has been amended by the Financial Act, 2015 w.e.f. 01.06.2015 and new clauses (c) and (d) has been inserted in Section 200A of the Act. By virtue of such amendment, while processing of TDS statement, the late fee, if any shall be computed in accordance with provisions of Section 234E of the Act. As a corollary, prior to amendment under Section 200A of the Act, levy of fee under Section 234E during processing of TDS statement is not tenable.
Since the amendment has been inserted under Section 200A of the Act w.e.f. 01.06.2015, the default committed by the assessee, if any, prior to the amendment will not attract fee under Section 234E of the Act.
FULL TEXT OF THE ORDER OF ITAT DELHI
The captioned appeals have been filed at the instance of the Assessee against the orders of the Commissioner of Income Tax (Appeals)-VIII, New Delhi [‘CIT(A)’ in short] all dated 28.08.2020 concerning levy of late fee of different amount under Section 234E of the Act vide intimation under Section 200A of the Act.
3. We have perused the first appellate order as well as the order passed under Section 234E of the Act. The Revenue has imposed late fee under Section 234E of the Act for default in furnishing TDS return within time stipulated in law.
4. The machinary provision of Section 200A of the Act provides for processing of statement of tax deducted at source which has been amended by the Financial Act, 2015 w.e.f. 01.06.2015 and new clauses (c) and (d) has been inserted in Section 200A of the Act. By virtue of such amendment, while processing of TDS statement, the late fee, if any shall be computed in accordance with provisions of Section 234E of the Act. As a corollary, prior to amendment under Section 200A of the Act, levy of fee under Section 234E during processing of TDS statement is not tenable.
5. Since the amendment has been inserted under Section 200A of the Act w.e.f. 01.06.2015, the default committed by the assessee, if any, prior to the amendment will not attract fee under Section 234E of the Act.
6. All the captioned appeals involving levy of late filing fee under Section 234E are in relation to period prior to 01.06.2015. Thus, late filing fee under Section 234E is contrary to the legislative mandate as well as plethora of decisions of the Co-ordinate Bench of Delhi Tribunal binding upon the AO. The Co-ordinate Bench of Delhi ITAT in the case of Raj Veer Singh vs. ACIT-CPC-TDS ITA No.3681/Del/2017 order dated 09.07.2021 has decided the issue in favour of the Assessee.
7. Since the demand under charging Section 234E for late filing of TDS return arising from belated TDS statements filed prior to 01.06.2015, the impugned late fee imposed requires to be deleted.
8. In the result, all the three captioned appeals of the assessee are allowed.
Order pronounced in the open Court on 15/02/2023.
