Case Number: ITA 6321/DEL/2019
Appellant: Chronicle Publication Pvt Ltd, New Delhi
Respondent: ACIT (CPC)-TDS, New Delhi
Assessment Year: 2014-15, 26(Q-2)
Order Date: 31st August 2020
Pronounced On: 31st August 2020
In this case, Chronicle Publication Pvt Ltd, New Delhi, filed an appeal against the ACIT (CPC)-TDS regarding the imposition of late filing fees under Section 234E of the Income Tax Act, 1961, for the Assessment Year 2014-15, specifically for Form 26Q (Quarter 2). The case was filed on 26th July 2019 and was brought before the Income Tax Appellate Tribunal (ITAT), Delhi Bench ‘A’, New Delhi.
The primary issue before the tribunal was whether late filing fees under Section 234E could be levied for TDS statements filed for the period prior to the amendment of Section 200A(1)(c) of the Income Tax Act, which came into effect from 1st June 2015. The appellant contended that the late filing fees under Section 234E could not be levied for the period before this amendment.
The appellant, Chronicle Publication Pvt Ltd, argued that the amendment to Section 200A(1)(c) was prospective in nature, and therefore, late filing fees under Section 234E could not be charged for any TDS statements filed for periods prior to 1st June 2015. The appellant’s representative cited various judicial precedents to support their argument, emphasizing that the legislature did not intend for the amendment to have retrospective effect.
The respondent, ACIT (CPC)-TDS, New Delhi, opposed the appellant’s contentions, arguing that the late filing fees under Section 234E were compensatory in nature and could be imposed for periods prior to the amendment. The respondent relied on the provisions of Section 234E, arguing that the fee was automatically applicable upon default and did not require specific legislative empowerment under Section 200A(1)(c) for periods prior to 1st June 2015.
The tribunal, after considering the submissions of both parties, referred to the judgment of the Karnataka High Court in the case of Fatheraj Singhvi & Ors. vs Union of India, which held that the amendment to Section 200A(1)(c) was prospective and not applicable to periods prior to 1st June 2015. The tribunal observed that the Income Tax Act’s provisions must be interpreted in a manner that does not impose a burden retrospectively, unless explicitly stated by the legislature.
The tribunal noted that various benches of the ITAT, including the Delhi Bench, had consistently held that late filing fees under Section 234E could not be imposed for TDS statements filed for periods prior to 1st June 2015. The tribunal held that the amendment to Section 200A(1)(c) did not confer retrospective power to levy fees under Section 234E and that any intimation issued under Section 200A for periods before the amendment was invalid.
The tribunal allowed the appeal filed by Chronicle Publication Pvt Ltd and quashed the levy of late filing fees under Section 234E for the Assessment Year 2014-15, Quarter 2. The tribunal’s decision reaffirms the principle that amendments to tax laws, especially those imposing penalties or fees, should not be applied retrospectively unless clearly intended by the legislature.
The final judgment in this case underscores the importance of adhering to the legislative intent behind amendments to tax statutes and provides clarity on the non-applicability of late filing fees under Section 234E for periods prior to the amendment of Section 200A(1)(c) in June 2015.
Judgment: The appeal by Chronicle Publication Pvt Ltd is allowed, and the levy of late filing fees under Section 234E for the Assessment Year 2014-15, Quarter 2, is quashed.
Manage the increasing number of hearings effortlessly by leveraging the legal AI revolution We are India's Leading revolutionary AI-powered legal platform where you can get enough insights into top cases and judgements.
Research Platform