ITAT Deletes Fees Related To The Period Of Tax Deduction Prior To June 1, 2015
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the levy of late fees of INR 40,000 related to the period of the tax deduction prior to 01.06.2015.The two-member bench of Rahul Chaudhary (Judicial Member) and M. Balaganesh (Accountant Member) has relied on the decision of Karnataka in the case of Fatehraj Singhvi Vs. Union of India in which it was held that the...
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the levy of late fees of INR 40,000 related to the period of the tax deduction prior to 01.06.2015.
The two-member bench of Rahul Chaudhary (Judicial Member) and M. Balaganesh (Accountant Member) has relied on the decision of Karnataka in the case of Fatehraj Singhvi Vs. Union of India in which it was held that the notice under Section 200A of the Income Tax Act for computing late fee under Section 234E of the Income Tax Act, to the extent the same related to the period of the tax deduction prior to 01.06.2015, was liable to be set aside.
The appellant/assessee was under an obligation to deduct tax at source in respect of amounts paid or payable to various parties and file a quarterly TDS Statement. The Appellant filed the TDS Statement/Revised Statement for the third quarter of the financial year 2012–13 relevant to Assessment Year 2013–14 belatedly.
The Assessing Officer, while processing the TDS Statement, issued an intimation to the Appellant under Section 200A and levied a late filing fee of INR 40,000 under Section 234E. The appellant preferred an appeal before CIT (A), which was dismissed.
The tribunal noted that the amendment to section 200A of the Income Tax Act w.e.f. 01.06.2015 has a prospective effect and is not applicable for the period of respective assessment years prior to 01.06.2015.
Before the amendment was brought in by the Finance Act, 2015, w.e.f. 01.06.2015, the department did not have the power to levy the late fees under section 234E in the statement processed under section 200A.
The ITAT, while allowing the appeal, deleted the levy of late fees of INR 40,000 for Assessment Year 2013–14, demanded under Section 234E of the Income Tax Act.
Case Title: Krishna Pandurang Kobnak versus National Faceless Appeal Centre
Citation: ITA No. 339/MUM/2022
Date: 14.10.2022
Counsel For Appellant: Advocate Ishaan Patkar
Counsel For Respondent: Advocate Tejinder Pal Singh