This document provides a detailed analysis of the Income Tax Appellate Tribunal’s final decision on the case between Motor Magic Auto Zone, Ghaziabad and ITO, Ward-2(2)(2), Ghaziabad, concerning the assessment year 2013-14 (Q-2). The case number is ITA 2637/DEL/2022, presided over by Judicial Member Shri Chandra Mohan Garg and Accountant Member Shri M. Balaganesh.
The appeal filed by the assessee, Motor Magic Auto Zone, was directed against the order dated 05.08.2022 passed by the National Faceless Appeal Centre (NFAC), New Delhi, relating to Assessment Years 2013-14 and 2014-15. The primary issue in this case was the levy of late filing fees under section 234E of the Income Tax Act, 1961, for defaults occurring before 01.06.2015.
During the hearing on 17.05.2023, the assessee did not appear, nor was any adjournment application filed despite due service of notice. The Tribunal decided to adjudicate the appeals ex parte after hearing the arguments of the Senior DR, Shri Sumit Kumar Verma.
The assessee sought condonation of a 29-day delay in filing the appeals, attributing the delay to the advocate’s lapses. The Tribunal, considering the cause reasonable and beyond the assessee’s control, condoned the delay and admitted the appeals for adjudication.
The primary ground of appeal raised by the assessee was the challenge to the levy of late filing fees under section 234E for defaults prior to 01.06.2015.
The assessee argued that the CIT(A) had allowed the appeal for AY 2015-16 under similar facts and circumstances but dismissed the appeals for AY 2013-14 and 2014-15 despite noting identical facts. The assessee requested that the late filing fees under section 234E be deleted for the earlier assessment years as well.
The Tribunal noted that the CIT(A) had indeed acknowledged similar facts in the earlier assessment years but had inconsistently dismissed the appeals for AY 2013-14 and 2014-15. The Tribunal observed that late filing fees under section 234E for periods prior to 01.06.2015 were not leviable based on various judicial precedents.
The Tribunal directed the AO to delete the late filing fees under section 234E for AY 2013-14 and 2014-15, allowing the appeals of the assessee.
Order pronounced in the open court on 22nd May, 2023.
(M. BALAGANESH)
ACCOUNTANT MEMBER
(CHANDRA MOHAN GARG)
JUDICIAL MEMBER
This case underscores the importance of consistent application of judicial principles and highlights that late filing fees under section 234E are not applicable for defaults occurring before the specified date of 01.06.2015.
The appellant, Motor Magic Auto Zone, challenged the imposition of late filing fees under section 234E for the assessment year 2013-14 (Q-2), arguing that similar facts in AY 2015-16 had led to a favorable decision.
The appellant contended that the CIT(A) inconsistently applied judicial principles by allowing the appeal for AY 2015-16 but dismissing the appeals for AY 2013-14 and 2014-15 under identical circumstances.
The Tribunal found that the CIT(A) had noted similar facts for the assessment years in question but had erroneously dismissed the appeals for the earlier years. The Tribunal confirmed that late filing fees under section 234E were not applicable for periods prior to 01.06.2015 based on various judicial precedents.
The Tribunal’s decision in the case of Motor Magic Auto Zone, Ghaziabad vs ITO, Ward-2(2)(2), Ghaziabad, reaffirms the principle that late filing fees under section 234E are not applicable for defaults occurring before 01.06.2015. The deletion of the fees for AY 2013-14 (Q-2) highlights the necessity for consistent application of judicial principles.
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