Case Number: ITA 1782/DEL/2020
Appellant: Sumel Heights Pvt Ltd, New Delhi
Respondent: ITO Ward-77(2), New Delhi
Assessment Year: 2014-15
Case Filed On: 2020-10-27
Order Type: Final Tribunal Order
Date of Order: 2023-02-15
Pronounced On: 2023-02-15
This document presents a detailed analysis of the tribunal’s decision regarding the appeal filed by Sumel Heights Pvt Ltd against the orders of the Commissioner of Income Tax (Appeals)-VIII, New Delhi. These appeals concern the levy of late fees under Section 234E of the Income Tax Act, 1961, as communicated through intimations under Section 200A of the Act for the assessment year 2014-15.
The appeal was prompted by the levy of late fees for the appellant’s delay in furnishing TDS returns within the prescribed time. Notably, the amendments to Section 200A, which include provisions for calculating such late fees, came into effect on June 1, 2015, through the Financial Act of 2015.
The tribunal’s decision focused on the applicability of Section 234E’s amendment prior to its enactment date. It was noted that any defaults occurring before June 1, 2015, should not attract the late filing fee under Section 234E as per the legislative mandate. This position is supported by various decisions of the Co-ordinate Bench of the Delhi Tribunal, which are binding.
The tribunal concluded that the late fees imposed for the periods prior to the amendment of Section 200A were untenable and were thus deleted. This outcome aligns with the tribunal’s adherence to legislative intent and precedential decisions.
The ruling underscores the importance of temporal applicability in the imposition of statutory penalties and affirms the necessity for tax authorities to adhere strictly to legislative changes when assessing penalties and fees.
Late Fee Appeal: Sumel Heights Pvt Ltd vs ITO Ward-77(2), New Delhi for AY 2014-15
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