Chronicle Publication Pvt. Ltd. vs ACIT (CPC)-TDS, New Delhi – Dispute on Late Filing Fee Under Section 234E for ITA 6315/DEL/2019

Case Summary

This case involves Chronicle Publication Pvt. Ltd., based in New Delhi, which was assessed by the ACIT (CPC)-TDS, New Delhi, concerning late filing fees under section 234E for the quarter 24 (Q-3) of the assessment year 2014-15. The case was filed on 2019-07-26 and the final tribunal order was pronounced on 2020-08-31.

Background

The appellant, Chronicle Publication Pvt. Ltd., was disputed by the ACIT (CPC)-TDS, New Delhi, for the levy of late filing fees under the Income Tax Act’s section 234E. The case focuses on the assessment year 2014-15, specifically the third quarter. Despite filing late, the appellant contended that the levy was incorrect and challenged the computational basis used by the tax authorities.

Legal Proceedings

The proceedings took place at the Income Tax Appellate Tribunal Delhi Bench ‘A’, with the hearing conducted through video conferencing on 2020-08-25, leading to a decision on 2020-08-31. The key legal question was whether the late filing fee under section 234E could be applied given the specifics of when the filings were completed relative to legislative changes affecting such fees.

Decision

The tribunal, led by Sushma Chowla, VP, and Dr. B.R.R. Kumar, AM, concluded that the imposition of the late filing fees for the specified quarters under section 234E was not valid prior to the amendment of section 200A(1)(c) via the Finance Act, 2015 effective from 2015-06-01. Hence, any intimation issued under section 200A of the Act prior to this date was deemed incorrect.

Conclusion

The tribunal’s decision highlighted the importance of adhering to the specific timelines and legislative context under which tax filings are processed. The ruling favored the appellant, relieving them of the late filing fees initially imposed for the assessment year 2014-15.

Chronicle Publication Pvt. Ltd. vs ACIT (CPC)-TDS, New Delhi – Dispute on Late Filing Fee Under Section 234E for ITA 6315/DEL/2019