A2Z WASTE MANAGEMENT (MIRZAPUR) LIMITED,GURGAON V. DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX (TDS), GHAZIABAD

ITA 741/DEL/2025

AI Insights

The case involves A2Z Waste Management appealing against the orders of the CIT(A), Delhi, for the assessment year 2014-15 concerning the levy of a late fee under section 234E read with section 200A of the Income Tax Act, 1961. The Tribunal noted the absence of representation from the appellant despite notice and proceeded ex parte. The core issue was whether the late fee under section 234E was applicable for the assessment years prior to the introduction of section 200A(1)(c) on June 1, 2015. The Tribunal referenced several judgments, including a significant one from the Madras High Court, which supported the view that the late fee could not be retrospectively applied.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 315751 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Other Referred Cases: ATN Infratech Ltd. Vs. ACIT, True Blue Voice India (P.) Ltd. Vs CCIT, Amaravati vs ITO, Atlas Brands (P.) Ltd. Vs CIT, Franchise India Brands Ltd. Vs CPC, Govt. Girls Sr. Secondary School Vs ACIT
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: OM PARKASH
• Keywords: Set aside; TDS

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘C’’ : NEW DELHI) BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA Nos. 740 & 741/Del/2025 Asstt. Year : 2014-15 A2Z WASTE MANAGEMENT VS. DCIT/ACIT (TDS), (MIRZAPUR) LIMITED, TDS, CPC, AYAKAR O-116, 1ST FLOOR, DLF SHOPPING BHAWAN, SECTOR-3, MALL, ARJUN MARG, VAISHALI, DLF CITY, PHASE-1, GHAZIABAD-201010 DLF QE S.O., GURGAON, HARYANA- 122002 (PAN: RTKA06548D) (Appellant) (Respondent) Appellant by : None Respondent by : Sh. Om Parkash, Sr. DR. Date of Hearing 13.05.2025 Date of Pronouncement 13.05.2025 ORDER PER MAHAVIR SINGH, VICE PRESIDENT : These appeals have been filed by the Assessee against the respective orders passed by the CIT(A), Delhi for the assessment year 2014-15. 2. None appeared on behalf of the assessee, despite issue of notice for hearing, hence, we are proceeding, exparte qua the assessee, after hearing the ld. DR. 3. Upon careful consideration, it comes up that the sole issue, involved for adjudication in these appeals, relating to levy of late fee u/s 234E r.w.s. 200A of the 2 | P a g e Income Tax Act, 196, is squarely covered in favour of the assessee by the order of the Tribunal dated 15.02.2024, rendered in the case of ATN Infratech Ltd. Vs. ACIT in ITA no. 878/Del/2023 for A.Y. 2015-16 (4th quarter/Form no. 24Q) wherein, the Tribunal allowed the assessee's appeal by deleting the late fee levied u/s 234E, inter alia, observing as under: \"6. Ld. AR has submitted that under section 200A of the Act, which deals with the manner in which the statement of Tax Deducted at Source (TDS) shall be processed, the Authorities have no power to impose the late fee under section 234E of the Act for the assessment years 2012-2013 to 2015- 16, since section 200A(1) (c) of the Act was introduced only with effect from 1-6-2015. Accordingly, any fee under Sec 234E could have been levied only prospectively, for periods beyond 01.06.2015, which is not the case of the case. Accordingly, the levy of fee on the assessee is invalid and thus, deserves to be deleted. It is submitted that no fee under Sec 234E of the Act can be levied before 01.6.2015. In this respect, reliance is placed on the judgment of Hon'ble High Court of Madras in the case True Blue Voice ITA Nos. 1596, 1597 & 1598/Del/2023 India (P.) Ltd. Vs CCIT, [2024] 158 taxmann.com 67 (Madras). Ld. AR referred to following observations of Hon'ble High Court in this judgment. \"15. The learned counsel for the respondent advanced his arguments on the aspect of the imposition of late fee by applying section 200A(l) (c) of the Act retrospectively. This Court is not in agreement with the said submissions of the respondent. Since, there was no provision for imposing the late fee under section 234E of the Act while filing and processing the TDS returns under section 200A of the Act, clause (c) to sub-section (1) to section 200A was introduced with effect from 1-7-2012. Therefore, the aforesaid submission made by the learned counsel for the respondent is rejected by this Court. 17. In view of the above, it is made clear that the respondent had had imposed the late fee only under section 234E of the Act for the assessment years 2012- 2013, 2013-2014, 2015- 2015. However, section 3 | P a g e 200A(L)(c) of the Act was not introduced during the said assessment years. In the absence of any provisions under section 200A of the Act, when they have processed the application for TDS under section 200A, no late fee can be imposed under section 234E. Hence, in such view of the matter, this Court feels that the impugned orders are liable to be set aside.\" 6.1 Further reliance is placed on Amaravati vs ITO, High Court of Kerala, [2022] 142 taxmann.com 81 (Kerala); Atlas Brands (P.) Ltd. Vs CIT, High Court of Karnataka, [2022] 137 taxmann.com 191 (Karnataka); Franchise India Brands Ltd. Vs CPC, ITAT Delhi, [2020] 122 taxmann.com 196 (Delhi - Trib.) Govt. Girls Sr. Secondary School Vs ACIT, ITAT Delhi, [2020] 121 taxmann.com 170 (Delhi - Trib.) 7. In the light of aforesaid, we are of the considered view that the Ld.CIT(A) has fallen in error in sustaining the levy of penalty in ITA No.878/Del/2023. ..... \" 4. Respectfully following the aforesaid precedents, we set aside the orders of the authorities below and late fee levied u/s. 234E is hereby deleted in both the appeals. 5. In the result, both the Assessee’s appeals are allowed. Order pronounced in the Open Court on 13.05.2025. Sd/- Sd/- (MANISH AGARWAL) (MAHAVIR SINGH) ACCOUNTANT MEMBER VICE PRESIDENT SRBhatnagar Copy forwarded to: - 1. Appellant 2. Respondent 3. DIT 4. CIT (A) 5. DR, ITAT TRUE COPY By Order, Assistant Registrar, ITAT, elhi Bench "