Janta Industries Vs ITO (TDS) (ITAT Raipur)
In the present case, the assessee challenged the levy of late filing fee under Section 234E of the Income-tax Act, 1961 in respect of belated filing of TDS returns in Form 26Q for the 2nd and 3rd quarters of Assessment Year 2013–14. The Assessing Officer, while processing the TDS statements under Section 200A, levied a fee of Rs. 14,694/- (for Q3) and Rs. 4,400/- (for Q2). The Ld.
CIT(A)/NFAC upheld the levy. Aggrieved, the assessee preferred appeal before the ITAT Raipur Bench. The principal contention of the assessee was that though Section 234E was inserted by the Finance Act, 2012 with effect from 01.07.2012 providing for levy of fee at the rate of Rs. 200 per day for delay in furnishing TDS statements, there was no enabling mechanism under Section 200A to compute and raise such demand while processing TDS statements prior to 01.06.2015. Therefore, any levy of fee under Section 234E through intimation under Section 200A for the period prior to 01.06.2015 was without jurisdiction and bad in law.
The Tribunal examined the statutory framework in detail. Section 234E, inserted by the Finance Act, 2012 w.e.f. 01.07.2012, provides that where a person fails to deliver a statement of tax deducted at source within the prescribed time under Section 200(3), he shall be liable to pay a fee of Rs. 200 per day for the period of default, subject to the amount of TDS. Sub-section (3) mandates that such fee shall be paid before filing the TDS statement. However, the machinery provision for processing TDS statements is contained in Section 200A.
