The case number ITA 734/DEL/2019 involves the appellant, Harjeet Singh from Sirsa, Haryana, and the respondent, ACIT, CPC-(TDS), Ghaziabad. This case pertains to the assessment year 2013-14, with the final tribunal order pronounced on February 27, 2023. The appeal was filed on February 1, 2019.
Harjeet Singh, the appellant, filed an appeal against the order dated June 28, 2018, passed by the CIT(A)-2, Gurgaon. The sole issue in this appeal pertains to the levy of a late fee under Section 234E of the Income Tax Act, 1961, for the default in furnishing TDS returns within the time stipulated by law. The ACIT, CPC (TDS), Ghaziabad, had raised a demand for the fee under Section 234E through intimation under Section 200A of the Act.
The primary issue in this case was whether the levy of a late fee under Section 234E was tenable for defaults committed before the amendment to Section 200A of the Act, which came into effect on June 1, 2015. The appellant contended that the imposition of such a fee was not permissible for periods prior to this amendment.
The tribunal examined the first appellate order as well as the order passed under Section 234E of the Act. It was noted that the machinery provision of Section 200A, which provides for the processing of TDS statements, was amended by the Finance Act, 2015, effective from June 1, 2015. The new clauses (c) and (d) inserted into Section 200A allowed for the computation of a late fee under Section 234E while processing TDS statements.
The tribunal observed that prior to this amendment, the levy of a late fee under Section 234E during the processing of TDS statements was not tenable. Therefore, any default committed by the appellant before June 1, 2015, could not attract a fee under Section 234E.
The tribunal referred to several decisions of the Delhi ITAT, which had consistently held that the levy of a late fee under Section 234E for periods prior to the amendment of Section 200A was not permissible. Notably, the tribunal cited the case of Raj Veer Singh vs. ACIT-CPC-TDS (ITA No.3681/Del/2017), decided on July 9, 2021, which supported the appellant’s position.
Given that the demand for the late fee under Section 234E arose from TDS statements filed before June 1, 2015, the tribunal concluded that the imposition of the fee was contrary to the legislative mandate and established judicial precedents. Consequently, the tribunal ruled that the late fee imposed under Section 234E should be deleted.
In the result, the appeal of Harjeet Singh was allowed. The order was pronounced in the open court on February 27, 2023.
(Pradip Kumar Kedia) ACCOUNTANT MEMBER (C.M. GARG) JUDICIAL MEMBER
Dated: 27th February, 2023.
Copy forwarded to:
Asstt. Registrar, ITAT, New Delhi
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