Detailed Analysis of ITA No. 6752/DEL/2019: Innovative Technology Solutions, Gurgaon vs ITO Ward (TDS), Ghaziabad – Challenge Against Late Filing Fees

ITA No. 6752/DEL/2019: Innovative Technology Solutions, Gurgaon vs ITO Ward (TDS), Ghaziabad

Introduction

This case involves Innovative Technology Solutions, Gurgaon, appellant, challenging the late filing fees imposed by the ITO Ward (TDS), Ghaziabad, respondent, for the assessment year 2014-15. The matter pertains to the fourth quarter of the mentioned assessment year and revolves around the interpretations and implications of sections related to TDS filing under the Income Tax Act, 1961.

Background

The appellant filed an appeal against the late filing fees imposed for delays in filing the TDS return for the fourth quarter of the assessment year 2014-15. The case was heard by the Income Tax Appellate Tribunal, Delhi Bench ‘A’, presided over by Ms. Sushma Chowla, VP, and Dr. B.R.R. Kumar, AM, via video conferencing on 26th August 2020, with a final order pronounced on 31st August 2020.

Arguments Presented

The appellant, represented by Sh. M.R. Sahu, CA, argued that the imposition of late filing fees was unwarranted and not in accordance with the provisions of the Income Tax Act. The respondent, represented by Sh. M. Barnwal, Sr. DR, defended the imposition stating it was within the legal framework provided by Section 200A(3) and related provisions of the Act.

Tribunal’s Decision

The tribunal analyzed the arguments based on legal precedents and the applicability of Section 200A(3) post the Finance Act, 2015 amendment. It was noted that the amendment introducing the clause for computation of late filing fees under Section 234E during the processing of TDS statements was not applicable retrospectively. Consequently, the tribunal ruled that the late filing fees imposed on the appellant for TDS statements filed before the amendment came into effect were invalid. The decision emphasized the need for clear legislative guidance on procedural aspects of tax law enforcement.

Conclusion

The case of ITA No. 6752/DEL/2019 highlights critical aspects of the procedural laws governing TDS filings and the implications of retrospective legislative changes. The tribunal’s decision provides clarity on the application of amendments and their effective dates, ensuring fair administrative practices.

Detailed Analysis of ITA No. 6752/DEL/2019: Innovative Technology Solutions, Gurgaon vs ITO Ward (TDS), Ghaziabad – Challenge Against Late Filing Fees