Levy of late filing fee u/s 234E of the Income Tax Act, 1961

This ruling addresses the levy of a late filing fee under Section 234E of the Income Tax Act, 1961. The assessee, a local body, filed its TDS statement late for the first quarter of FY 2014-15. The Income Tax Appellate Tribunal considered whether the fee was applicable, referencing a Karnataka High Court decision that amendments to Section 200A, which enable such fees, are prospective. Therefore, the late filing fee was not maintainable for periods prior to June 1, 2015.

IN THE INCOME TAX APPELLATE TRIBUNAL
(DELHI BENCH ‘G’ : NEW DELHI)
(THROUGH VIDEO CONFERENCE)
BEFORE SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER
And
SHRI KULDIP SINGH, JUDICIAL MEMBER
ITA No.5921/Del./2016
ASSESSMENT YEAR : 2015-16

Sub Divisional office,
Civil Panipat, 
Secretariat, Panipat

PAN : TRKSO7590C

APPELLIANT

Vs.

ITO,

TDS

Karnal

RESPONDENT

ASSESSEE BY : None
REVENUE BY : Shri Prakash Dubey, Sr. DR
Date of Hearing : 14.07.2021
Date of Order : 26.07.2021
O R D E R
 

Appellant, Sub Divisional Office Civil Panipat (hereinafter referred to as ‘the assessee’) by filing the present appeal sought to set aside the impugned order dated 02.09.2016 passed by the Commissioner of Income-tax (Appeals)-Karnal qua the assessment year 2015-16.

2. Briefly stated the facts necessary for adjudication of the controversy at hand are : assessee is a local body in the name and style of Sub Divisional Office Civil Panipat and was required to deduct and deposit TDS as per the provisions of Income Tax Act. Assessee has duly deducted and deposited TDS of Rs. 72,200/- for 1st Quarter of FY 2014-15 on salary to the credit of government and filed the TDS statement on 14.11.2015. Assessing Officer after processing the TDS statement raised a demand of Rs. 72,200/- by way of intimation u/s 200A of the Act vide order dated
TDS/1415/24Q/D/100017191410, 27.11.2015 for delay in filing the TDS statement.

3.We examine the contentions raised by the ld. AR for the assessee before Ld. CIT(A) in the light of the provisions
contained u/s 200A (1)(c) of the Act brought into Statute by the ITA No.5921/Del./2016
 Finance Act, 2015 w.e.f. 01.06.2015, there was no enabling/machinery provision for making such addition while
processing the TDS statement / return u/s 200A of the Act.

4. Because Hon’ble Karnataka High Court in case of Fatehraj Singhvi & Ors. vs. UOI & Ors. 2016 (9) TMI 964
(Karnataka High Court) is in favour of the assessee holding that the amendments brought in statute w.e.f. 01.06.2015 are prospective in nature and as such, notices issued u/s 200A of the Act for computation and intimation of payment of late filing fee u/s 234E of the Act relating to the period of tax deduction prior to
01.06.2015 was not maintainable.

5. Order pronounced in open court on this 26TH day of July, 2021.