INCOME TAX ACT, 1961

Section 234E Section 200A

Fee under section 234E - Delay in filing of TDS statement - Leviability - Whether mandatory or discretionary--Assessee pleading reasonable cause for delayed filing

Assessee challenged levy of late fee under section 234E while issuing intimation under section 200A of quarterly TDS statement filed by assessee belatedly pleading that delay was only technical, Processing of Form No. 24Q could not be completed without 24 Q, i.e., annual detail being processed and generation of Form 16 and once TDS statement had been accepted without late fee, then such late fee could not be recovered later on. Held: After amendment with effect from 1-6-2015 in section 200A, AO was empowered to make adjustment on account of fee, if any, in accordance with section 234E. Once there was a default on part of assessee in submitting quarterly TDS statement, section 234E got attracted and, therefore, while processing quarterly TDS statement, AO was bound to make adjustment on account of late fee as provided under section 234E. The levy of late fee prescribed under section 234E is mandatory and consequential in nature, therefore, same could not be deleted on the ground of reasonable cause as explained by the assessee. In the absence of allegation that AO failed to comply with mandatory provisions of section 200A read with section 234E while making adjustment and issuing the intimation, the adjustment made by AO on account of late fee under section 234E could not be deleted.

Followed:Government Secondary School Principal Officer v. Asstt. CIT, CPC-TDS, Gaziabad in ITA No. 964/JP/2019 vide Order, dated 24-6-2020.

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2018-19

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