No TDS Late Fees u/s 234E for any period prior before 01-06-2015: ITAT

The sole grievance of the assessee in the captioned appeal is confirmation of levy of fees u/s. 234E for late filing of quarterly TDS returns in Form No. 26Q. The due date was 15-10-2012 whereas the return has been filed by the assessee on 03-01-2014 and accordingly, TDS-CPC levied late filing fees u/s 234E for Rs.14712/-. The Ld. CIT(A) confirmed the same against which the assessee is in further appeal before the Chennai Tribunal.

The registry has also noted a delay of 28 days in the appeal, the condonation of which has been sought by Ld. AR. Considering the period of delay, The Income Tax Appellate Tribunal  (ITAT) has condoned the same and proceeded for adjudication of the appeal on merits.

ITAT Order:

3. We find that this issue has been adjudicated by us in assessee’s favour in host of decisions considering the favorable decision of Hon’ble Karnataka High Court in Fatehraj Singhvi V/s Union of India (73 Taxmann.com 252 26/08/2016). In this decision, Hon’ble Court has held that since the amendment to Section 200A by way of insertion of clause (c) is only with effect from 01-06-2015, no fees would be payable by the assessee for any period prior to 01-06-2015. Therefore, taking consistent view, we would hold that no fees u/s 234E could have been levied for any period prior to 01-06-2015. The Ld. AO is directed to revise the demand raised against the assessee.

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