Innovative Technology Solutions, Gurgaon vs ITO, Ward (TDS), Ghaziabad: A Case of Delayed TDS Filing for 26Q, Qtr-1, AY 2014-15

Innovative Technology Solutions, Gurgaon vs ITO, Ward (TDS), Ghaziabad: A Case of Delayed TDS Filing for 26Q, Qtr-1, AY 2014-15

In a landmark ruling by the Income Tax Appellate Tribunal Delhi Bench ‘A’, the case of Innovative Technology Solutions based in Gurgaon against the Income Tax Officer, Ward (TDS), Ghaziabad was decided on. The case number ITA 6753/DEL/2019 pertained to the delayed filing of TDS for the first quarter of the 26Q form for the assessment year 2014-15. The tribunal examined the intricate details of the case proceedings, which were held through video conferencing on August 26, 2020, with the final order being pronounced on August 31, 2020.

Presided over by Ms. Sushma Chowla, VP, and Dr. B.R.R. Kumar, AM, the tribunal had to determine the applicability of late filing fees under section 234E of the Income-tax Act, 1961. The major contention revolved around whether the assessee was liable for a late filing fee due to the delay in filing the TDS statements. The hearing, detailed analysis of procedural timelines, and the legislative framework underpinning section 200A and 234E were critical in reaching the conclusion.

The tribunal’s decision focused on the interpretation of statutory provisions related to the processing of TDS statements and the imposition of late filing fees. It was noted that while the assessee did file the TDS after the due date, the primary question was whether the penalties applied were justifiable under the legal framework existing prior to the amendments brought by the Finance Act, 2015. The tribunal observed that the amendments to section 200A, which allowed for the computation of fees under section 234E during TDS processing, did not apply retrospectively to assessments prior to June 1, 2015.

In conclusion, the tribunal ruled in favor of the assessee, stating that the late filing fees under section 234E could not be levied for the period in question as the relevant legislative amendments were prospective, not retrospective. This ruling underscores the tribunal’s adherence to the principles of statutory interpretation, ensuring that the assessee was not penalized under anachronistic provisions.

This case sets a precedent for similar cases where the applicability of amendments and their effective dates are in question, providing clarity on the legislative intent and the protection of taxpayer rights against retroactive statutory provisions.

Innovative Technology Solutions, Gurgaon vs ITO, Ward (TDS), Ghaziabad: A Case of Delayed TDS Filing for 26Q, Qtr-1, AY 2014-15