Deletion of the addition made under section 234B of the ITA Act

Last updated: 27 March 2021

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This judgement concerns appeals filed by M/s Transpose Solutions (India) against late fees levied under section 234E of the Income Tax Act for delayed submission of Tax Deducted at Source (TDS) statements. The assessee argued that the relevant assessment years predated the amendment that incorporated the section 234E fee into section 200A of the Act, making the levy inapplicable. The appeals were filed against a common order from the CIT(A)-9, Bangalore.

Court :
ITAT Bangalore

Brief :
Present appeals has been filed by assessee againstcommon order dated 25/07/2019 passed by Ld.CIT(A)-9, Bangalore for assessment years 2013-14 to 2015-16. The issue that arises out of the present appeal is challenging the late fee levied under section 234E of the Act, for delay in furnishing the tax deducted at source statement.

Citation :
ITA 2200/BANG/2019

IN THE INCOME TAX APPELLATE TRIBUNAL
‘A’ BENCH : BANGALORE

BEFORE SHRI. B.R BASKARAN, ACCOUNTANT MEMBER
AND
SMT. BEENA PILLAI, JUDICIAL MEMBER
ITA Nos.2200 to 2202/Bang/2019
Assessment Year : 2013-14 to 2015-16

M/s Transpose Solutions
(India),
No.22, 2nd Floor, Central
Street, 5th Block,
Kumara Park West,
Benga,luru-560 020.
PAN – AADCT 7981 K

Vs.

The Addl. Commissioner of
Income-Tax,
CPC, TDS,
Bengaluru.
APPELLANT RESPONDENT

Assessee by : Smt. Preethi Patel, Advocate
Revenue by : Shri Kannan Narayanan, JCIT
(DR)

Date of Hearing : 15-02-2021
Date of Pronouncement : 08-03-2021

ORDER

PER BEENA PILLAI, JUDICIAL MEMBER

Present appeals has been filed by assessee againstcommon order dated 25/07/2019 passed by Ld.CIT(A)-9, Bangalore for assessment years 2013-14 to 2015-16. The issue that arises out of the present appeal is challenging the late fee levied under section 234E of the Act, for delay in furnishing the tax deducted at source statement.

2. The Ld.AR submitted that there was various issues that assessee had to face thereby causing financial distress. Assessee therefore delayed in clearing the dues. It was submitted thatassessee was not having sufficient income to sustain its businessduring the relevant period due to cash crisis. It has beensubmitted that section 200A was amended incorporating levy offee under section 234E in clause ( c) read with section 200 A (1)of the Act vide Finance Act No.2, 2015 ,w.e.f. 01/06/2015. It wassubmitted that, the relevant assessment years are prior to the date of amendment in section 234E of the Act read with section 200A(1) is not applicable.

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FAQ :

The main issue is the challenge against the late fee levied under section 234E of the Income Tax Act for the delay in furnishing the Tax Deducted at Source (TDS) statement.

The assessee argued that the levy of a fee under section 234E was incorporated into section 200A of the Act via an amendment effective from 01/06/2015. Since the relevant assessment years were prior to this amendment, they contended that the fee was not applicable.

The appeals cover the assessment years 2013-14 to 2015-16.

The appellant is M/s Transpose Solutions (India), and the respondent is The Addl. Commissioner of Income-Tax, CPC, TDS, Bengaluru.