The Tax Publishers2021 TaxPub(DT) 1162 (Jp-Trib)


Section 234E

Where the filing of TDS statement has happened in year 2017 and thereafter, the same has been processed and intimation issued on 4-12-2017 under section 200A by ACIT-TDS levying late filing fees under section 234E, AO was thus well within his jurisdiction to levy fees under section 234E.

Fee under section 234E - Leviability - Applicability of amendment to section 200A w.e.f. 1-6-2015 -

Assessee filed appeal against the order of CIT(A) in confirming the demand raised on account of the impugned late filing levy under section 234E for 1st Quarter of assessment year 2014-15 on the ground that prior to the amendment in section 200A w.e.f. 1-6-2015, AO had no authority at all to levy fees pertaining to the period prior to 01-6-2015. Held: Contention of assessee that since the TDS statement pertains to the period i.e., for the financial year 2013-14(1st quarter) even though the same has been filed in the year 2017, AO is not empowered to levy late filing fees under section 234E. The Tribunal was unable to accept the above contention as it was found that at the time of processing of the TDS statement i.e. on 14-10-2017, the AO was empowered to levy such late filing fees, there is no provision to make a distinction between the TDS statements pertaining to period prior to 01-6-2015 and post such period and more, importantly, it will result in creating two classes of assessees who for the same default will suffer different penal consequences leading to unintended class discrimination which cannot be the intention of the legislature in absence of anything contrary provided under the statute. Further, as relying on Uttam Chand Gangwal [(ITA No. 764/JP/2017 dated 23-1-2019) : 2019 TaxPub(DT) 1547 (Jp-Trib)] there is a continued default beyond 01-06-2015, therefore, following the aforesaid decision, the levy of fees under section 234E, which is levied for each day during which the default continues, is upheld for the period 01-06-2015 to the date of actual filing of the TDS statement and the balance late filing fees so levied is deleted. In the result, the appeal of the assessee was partly allowed.

Followed:Uttam Chand Gangwal [(ITA No. 764/JP/2017 dated 23-1-2019) : 2019 TaxPub(DT) 1547 (Jp-Trib)] .


FAVOUR : Partly in favour of assessee

A.Y. : 2014-15