Utkarsh Balaso Patil Vs ITO (ITAT Pune)
Substance Over Penalty: 234E Fee Not Sustainable for Returns Processed Before 01.06.2015
Background
- Appeals: 14 appeals covering quarters of FYs 2013-14 & 2014-15 (Forms 24Q/26Q).
- Dispute: Levy of late fee u/s 234E for delayed filing of TDS statements.
- CPC: While processing returns u/s 200A, levied late fee u/s 234E.
- CIT(A)/NFAC (10.06.2025): Dismissed appeals, confirmed levy.
Assessee’s Arguments
- Fee u/s 234E not applicable prior to 01.06.2015, since enabling provision in sec. 200A(c) inserted prospectively by Finance Act, 2015.
- Relied on multiple ITAT rulings & Kerala HC (Olari Little Flower Kuries Pvt. Ltd. 440 ITR 26, Jiji Varghese 443 ITR 267).
Revenue’s Stand
- Supported levy of fee; argued defaults occurred & provisions applied.
Tribunal’s Findings/ Decision
- Noted consistent judicial precedents of ITAT Pune in
Dadasaheb Vitthalrao Urhe (ITA Nos.1286–1309/PUN/2023, order dated 29.02.2024).
Ram Refrigeration & Electronics Pvt. Ltd. (ITA Nos.884–887/PUN/2025, order dated 23.05.2025).
Vidya Sunil Mane (ITA Nos.128–131/PUN/2024, order dated 28.03.2024).
- Amendment to sec. 200A enabling levy of fee u/s 234E is prospective from 01.06.2015.
- Hence, no fee can be levied for returns processed prior to 01.06.2015, even if delay occurred earlier.
- NFAC orders confirming levy were contrary to settled law.
- Tribunal reversed NFAC orders.
- Directed Revenue to delete late fee u/s 234E in all 14 cases.
Late fee u/s 234E cannot be charged for TDS statements processed before 01.06.2015. The amendment to sec. 200A is prospective, and NFAC orders confirming levy for earlier periods were quashed.
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