No Section 234E late fees for delayed TDS Statement filed before 31.05.2015

Klug Avalon Mechatronics Private Limited Vs ITO (ITAT Pune)

ITAT held that a person is liable to deduct any sum under the provisions of chapter XVII of the Act, is under obligation to deliver or furnish a statement u/s 200(3) of the Act within the due date prescribed therein and in the event of default, is exposed to section 234E of the Act. Although the levy of fees u/s 234E of the Act for delay in furnishing statement has been brought into statute w.e.f. 1^st July, 2012, the enabling provision of section 200A(1)(c) authorising such levy came into force w.e.f. 1^st June, 2015 by Finance Act, 2015, consequently the fees levied for any default prior thereto being sine auctoritate hence unsustainable in the eyes of law.

So in respect of any assessment year the levy of fees under Section 234E  for delayed filing of TDS statement can only be permissible where such statement is filed after 31^st May, 2015.

Undisputedly, in the present case, the regular TDS statement was first filed much before aforestated deadline of 31^st May 2015, however the Ld. AO processed the statement and unlawfully levied the fees u/s 234E for delayed furnishing in the absence of enabling provision of section 200A(1)(c) of the Act. Such levy suffers from infirmity and bad in, ergo ITAT delete the levy.

FULL TEXT OF THE ORDER OF ITAT PUNE

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