Late fee u/s. 234E set aside as first three quarters TDS return filed before 4th quarter due date

Supujita Adivsory and Consultancy (OPC) Private Limited Vs DCIT (ITAT Hyderabad)

ITAT Hyderabad held that levy of late filing fee u/s. 234E of the Income Tax Act for 1^st, 2^nd, and 3^rd quarter TDS return in Form 26Q not justified since all the 3 quarter returns filed on or before due date of filing 4^th quarter return and reasonable cause shown. Accordingly, appeal allowed.

Facts- The appellant company is a one person company and engaged in the business of providing corporate advisory and consultancy services. The appellant company has deducted TDS of various payments and has filed quarterly TDS returns in Form-26Q for 1st, 2ⁿd and 3^rd quarters on 29.04.2023. The Assessing Officer-CPC [TDS] processed quarterly returns filed in Form-26Q for 1^st and 2^nd quarters on 02.05.2023 and for 3^rd quarter on 03.05.2023 and also levied late filing fee u/sec.234E of the Income Tax Act, 1961 for delay in filing quarterly returns.

The appellant company has filed appeal against the order passed by the Assessing Officer, TDS [CPC] and challenged late filing fee levied u/s. 234E of the Act. CIT(A) rejected the explanation of the appellant company and upheld the late filing fee levied by the Assessing Officer. Being aggrieved, the present appeal is filed.