Supreme Brahmaputra (JV), New Delhi vs ACIT – CPC – TDS, Ghaziabad: Challenge to Penalty Levy under Section 234E – ITA 6706/DEL/2019

Case Overview

Case Number: ITA 6706/DEL/2019

Appellant: Supreme Brahmaputra (JV), New Delhi

Respondent: ACIT – CPC – TDS, Ghaziabad

Assessment Year: 2013-14

Filed on: August 13, 2019

Order Date: August 31, 2020

Summary of Proceedings

The appeal involves the appellant, Supreme Brahmaputra (JV), challenging the penalty levied under Section 234E for late filing fees as confirmed by CIT(A). The matter centers on the interpretation and application of Section 234E concerning the timing of levy of fees for delayed TDS statements, with significant references to legislative changes effective June 1, 2015.

Decision

The Tribunal, led by members R.K. Panda and Sudhanshu Srivastava, concluded that the penalties under Section 234E, as applied to the period before the amendments took effect on June 1, 2015, were inappropriately applied. They emphasized that such amendments are to be treated as prospective, not retrospective. As a result, the appeal by Supreme Brahmaputra (JV) was allowed, and the penalty charges were overturned.

Implications

This case underscores the importance of the precise application of tax laws and the boundaries of retrospective application of legislative changes. It highlights the Tribunal’s role in interpreting tax provisions while ensuring that taxpayers are not unfairly penalized due to unclear legislative intent.

Supreme Brahmaputra (JV), New Delhi vs ACIT – CPC – TDS, Ghaziabad: Challenge to Penalty Levy under Section 234E – ITA 6706/DEL/2019