An in-depth review of the Income Tax Appellate Tribunal’s decision in ITA No. 1361/Del/2021 for the assessment year 2013-14 Q3, involving ICMC Projects Pvt. Ltd., Delhi and the Income Tax Department, Centralized Processing Center (CPC), Bengaluru.
The case focuses on the appeal by ICMC Projects Pvt. Ltd. against late fee levied for delayed filing of TDS statements for various quarters of the fiscal year 2013-14 and all quarters of FY 2014-15, challenging the applicability of Section 234E of the Income Tax Act, 1961.
The primary issue revolves around whether the levy of late fees under Section 234E for delays in TDS statement filings before June 1, 2015, is justifiable, especially considering retrospective or prospective application of tax law amendments.
The tribunal, referencing differing High Court judgments, sided with precedents favorable to the assessee, invoking the principle from the Supreme Court decision in the case of Vegetable Products Ltd., that in the presence of conflicting decisions, the option favoring the assessee should be adopted.
This section delves into the interpretation of Section 234E and its implications for taxpayers and the authority of the Income Tax Department in levying penalties retrospectively.
The tribunal’s decision in favor of ICMC Projects highlights the ongoing debates around the interpretation of fiscal statutes and their retrospective application. This case serves as a significant precedent for similar cases involving penalties imposed for actions taken before specific amendments to tax laws.
Order pronounced in the open court on 25/02/2022.
Analysis of ITA No. 1361/Del/2021: ICMC Projects Pvt. Ltd. vs. ITD, CPC, Bengaluru for AY 2013-14 Q3
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