Case Law Details
Anjani PRS Blends Pvt. Ltd. Vs DCIT (ITAT Hyderabad)
ITAT Hyderabad held that notices issued under section 200A of the Act for computation and intimation for payment of late filing fees under section 234E of the Act relating to the period of tax deduction prior to 01/06/2015 are not maintainable.
Facts- Only issue which needs to be adjudicated in these appeals is the charging of late filing fee u/s 234E of the Income Tax Act, 1961 (‘the Act’) while issuing the intimation u/s 200A of the Act. Assessee is a private limited company, engaged in the business of manufacturing of raw material used for plastic products. Assessee is under legal obligation to deduct tax at source and deposit the same with Government within the prescribed time. Assessee, however, received noticed under section 200A of the Act levying late filing fee for the assessment year 2012-13.
Assessee appealed against such levy before the learned CIT(A), but the learned CIT(A) declined to delete the levy of fee and charging of interest stating that when the assessee files the TDS statements beyond the due date, such a levy of late fee and the interest is consequential and mandatory.
Conclusion- Hon’ble High Court of Karnataka thus explained the position of charging of late filing fees under section 234E of the Act and the mechanism for computation of fees and failure for payment of fees under section 200A of the Act in the light of amendment w.e.f. 01/06/2015, and held such amendment to be prospective in nature and, therefore, notices issued under section 200A of the Act for computation and intimation for payment of late filing fees under section 234E of the Act relating to the period of tax deduction prior to 01/06/2015 were not maintainable. The same were accordingly quashed.
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