This article examines the case of ITA No. 1362/Del/2021 between ICMC Projects Pvt. Ltd., Delhi and the Income Tax Department, Central Processing Center (CPC), Bengaluru for the assessment year 2013-14 Q4, which addressed the applicability of late fee levies under Section 234E of the Income Tax Act.
The case involves an appeal by ICMC Projects Pvt. Ltd. regarding the late fee levied for the delayed filing of the TDS statement for the fourth quarter of the fiscal year 2013-14. The case was adjudicated under a consolidated order that also covered similar issues for other quarters and fiscal years.
The tribunal examined whether the late fees under Section 234E for TDS statement delays could be retrospectively applied prior to June 1, 2015, when specific amendments under the Finance Act 2015 came into force.
The tribunal reviewed conflicting High Court decisions regarding the retrospective application of amendments. It sided with the precedents that favored the assessee, following the principle that in the presence of conflicting decisions, the interpretation that favors the taxpayer should prevail.
The decision to delete the late fee levied on ICMC Projects Pvt. Ltd. signifies a critical examination of procedural fairness and the retrospective application of tax laws. This case sets a precedent for how similar cases should be handled, especially concerning the timing of legislative changes and their enforcement.
The tribunal’s order was pronounced in the open court on February 25, 2022.
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