Case Analysis: Innovative Technology Solutions, Gurgaon vs ITO, Ward (TDS), Ghaziabad for AY 2013-14, 27Q, Qtr-4 (ITA 6751/DEL/2019)

Innovative Technology Solutions, Gurgaon vs ITO, Ward (TDS), Ghaziabad

Case Number: ITA 6751/DEL/2019

Appellant: Innovative Technology Solutions, H.No.- 651, 1st Floor, Sec-10A, Nr Meenakshi Public School, Gurgaon.

Respondent: ITO, Ward TDS, Ghaziabad.

Assessment Year: 2013-14, 27Q, Qtr-4.

Date of Order: 2020-08-31.

This case involves a dispute regarding the late filing fees assessed under section 234E of the Income Tax Act, 1961. The appellant, Innovative Technology Solutions, was penalized for the delay in filing the TDS statement for the fourth quarter of the assessment year 2013-14. The case highlights significant procedural nuances in the imposition of late filing fees, especially the interpretation and application of section 200A and 234E post the Finance Act, 2015 amendment.

The Income Tax Appellate Tribunal, Delhi Bench ‘A’, presided over by Ms. Sushma Chowla, VP and Dr. B.R.R. Kumar, AM, deliberated on the matter. The primary issue was the retrospective application of the provisions concerning the levy of late filing fees under section 234E, as amended by the Finance Act of 2015. The tribunal, referencing the decision of the Karnataka High Court in Fateh Raj Singhvi & Ors vs UOI, concluded that the amendment to section 200A, which enables the levy of late filing fees, has a prospective effect and is not applicable to returns filed before the amendment came into effect on June 1, 2015.

Despite the penalties originally imposed for late filings, the tribunal decided in favor of the appellant, setting a precedent on the non-retroactive application of amended tax provisions. This judgment underlines the principle that legislative changes concerning tax penalties should clearly delineate their effective scope to avoid retrospective punishments.

The decision is pivotal for taxpayers and practitioners in understanding the boundaries of legislative amendments and their practical implications on procedural compliance under the Income Tax Act.

Case Analysis: Innovative Technology Solutions, Gurgaon vs ITO, Ward (TDS), Ghaziabad for AY 2013-14, 27Q, Qtr-4 (ITA 6751/DEL/2019)