Vivimed Labs Limited Vs DCIT (ITAT Hyderabad)
The appeals were filed by the assessee company against the orders of the Commissioner of Income Tax (Appeals)-11, Hyderabad dated 31 May 2025. These orders arose from orders passed by the Income Tax Officer (TDS), CPC, Ghaziabad under sections 200A/206CB read with section 154 of the Income-tax Act, 1961 for different quarters relating to Assessment Years (AY) 2021–22 and 2022–23. As the issues involved were common, the Tribunal disposed of the appeals through a consolidated order, first examining the appeal for AY 2021–22, with the findings applying mutatis mutandis to the other appeal.
The dispute originated from the filing of quarterly TDS/TCS statements for Financial Year 2020–21. The ITO (TDS), CPC processed the statements and passed orders raising demands for interest under section 201(1A), late filing fee under section 234E, and interest under section 220(2). Additionally, a demand of Rs.13,660 was raised for short payment and short deduction/collection of tax in respect of Form 26Q for the third quarter through an order passed under section 154 dated 19 April 2022.
The assessee challenged these demands before the CIT(A). It contended that the delay in filing TDS statements occurred because the accountant responsible for TDS compliance had fallen ill and was unable to attend office during the COVID-19 lockdown. The assessee also argued that business operations were disrupted due to pandemic restrictions, resulting in delays that were beyond its control. It therefore claimed that the levy of interest under section 201(1A), late filing fee under section 234E, and interest under section 220(2) was unjustified. The assessee further contended that the Supreme Court had extended limitation periods due to COVID-19, and therefore penal consequences for delayed filing should not apply.
