INCOME TAX ACT, 1961

Section 234E

Tax deduction at source - Levy of late filing fee under section 234E - TDS return filed belatedly -

Assessee was a private limited company. The assessee filed the TDS return for the respective quarters belatedly, therefore, the Asstt. CIT (CPC-TDS), raised the demands under section 234E for the respective quarters and respective assessment years. CIT(A) dismissed all the appeals of the assessee holding that the assessee had filed quarterly TDS return in Form No. 26Q for the above mentioned quarters belatedly.Held: Assessee had deducted TDS, which had been deposited within the time and on perusal of the demand notice raised by the CPC (TDS), it was noticed that there was no any short payment, short deduction/collection, interest on payment default under section 201(1A)/206C(7), interest on short payment, interest on deduction/collection default under section 201(1A)/206C(7), interest on short deduction/collection, interest on late deduction/collection, which shows that there was no delay for deduction and deposit. Only the assessee did not comply the provisions of section 234E, therefore, the CPC(TDS) had raised the demand against the assessee. The issue relates to prior to the amendment in section 234E. The decision of the Coordinate Bench of the Tribunal in the case of Glee Pharma Pvt. Ltd. the Tribunal had decided the issue in favour of the assessee upto the extent of amendment in section 234E with effect from 1-6-2015. The AO was therefore, directed to delete the fee levied under section 234E for the 1st, 2nd, 3rd & 4th quarters for the Financial Year 2013-14 relevant to assessment year 2014-15 and for the 1st, 2nd, 3rd & 4th quarters for the financial year 2014-15 relevant to assessment year 2015-16 on account of late filing of TDS return. For rest of period w.e.f. 1-6-2015 late filing fee under section 234E could be levied. Both the authorities below had rightly levied the late fee under section 234E.

Followed:Tribunal in the case of Glee Pharma (P) ltd. ITA Nos. 161-163/CTK/2016, Order, dated 28-8-2017. Relied:Govt. High School, Unit-VI, Bhubaneswar ITA No. 379/CTK/2018, dated 14-10-2019.