Impugned statutory provision very much applies for the relevant previous year, says ITAT

Last updated: 24 February 2021

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The Income Tax Appellate Tribunal (ITAT) in Hyderabad has ruled that the statutory provision for levying late fees under Section 234E of the Income Tax Act, 1961, is applicable for the relevant previous year. This decision addresses appeals concerning late fees imposed under Section 200A of the Act for assessment years 2017-18 and 2018-19. The tribunal's order clarifies the applicability of this provision, particularly in relation to its effective date.

Court :
ITAT Hyderabad

Brief :
These two assessee’s appeals for AYs.2017-18 & 2018-19are directed against the CIT(A)–8, Hyderabad’s order dated 22-05-2019 passed in appeal Nos.10147 & 10148/CIT(A)-8/Hyd/2018-19, involving proceedings u/s.200A of the Income Tax Act, 1961 [in short, ‘the Act’]

Citation :
ITA 1199/Hyd/2019

IN THE INCOME TAX APPELLATE TRIBUNAL
HYDERABAD BENCHES “A” : HYDERABAD
(THROUGH VIDEO CONFERENCE)

BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER
AND
SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER

For Assessee : Shri S.Rama Rao, AR
For Revenue : Shri Sunil Kumar Pandey, DR

Date of Hearing : 19-01-2021
Date of Pronouncement : 03-02-2021

O R D E R

PER BENCH :

These two assessee’s appeals for AYs.2017-18 & 2018-19are directed against the CIT(A)–8, Hyderabad’s order dated 22-05-2019 passed in appeal Nos.10147 & 10148/CIT(A)-8/Hyd/2018-19, involving proceedings u/s.200A of the Income Tax Act, 1961 [in short, ‘the Act’]

2. The assessee’s sole substantive grievance raised in the instant appeals seeks to reverse both the lower authorities’ action in levying late fee of Rs.7,600/- and Rs.13,800/-u/s.234E of the Act; respectively. The CIT(A)’s lower appellatediscussion to this effect, reads as under (extracted from AY.2017-18):

“4. In the appeal, the main contention of the AR is that the provision to include late fee u/s.234E in the intimation u/s. 200A of the Actcame into effect only through the Finance Act, 2015 w.e.f.1.6.2015. Section 200A enabling the AO to determine the late fee u/s. 234E brought about w.e.f. 1.6.2015 is prospective in nature and the AO was not empowered to charge late fee u/s.234E for the period prior to 1.6.2015.

To know more in details find the attachment file

FAQ :

The main issue concerns the applicability of the late fee provision under Section 234E of the Income Tax Act, 1961, for the relevant previous year, and whether it was correctly applied by the lower authorities.

The sections involved are Section 234E (levying late fee) and Section 200A (determining late fee in intimation) of the Income Tax Act, 1961.

The assessee argued that the provision to include late fees under Section 234E in an intimation under Section 200A came into effect only from 1st June 2015, and therefore, the authorities were not empowered to charge this fee for periods prior to that date.

The appeals are directed against the orders levying late fees of Rs. 7,600/- and Rs. 13,800/- respectively for the assessment years 2017-18 and 2018-19.