DIGP GC CRPF,NAGPUR V. DEPUTY COMMISSIONER OF INCOME TAX, CENTRALIZED PROCESSING CELL, TDS, GHAZIBAD

ITA 302/NAG/2025

AI Insights

The case involves an appeal by the DIGP GC CRPF, Nagpur against the order of the National Faceless Appeal Centre, Delhi, which confirmed a late fee levied by the DCIT, CPC TDS, under section 234E of the Income Tax Act, 1961, for the Assessment Year 2014-15. The primary contention was that the late fee was incorrectly applied for TDS deducted in a period prior to the legislative amendment that allowed such a levy, which came into effect on 01.06.2015. The Tribunal, referencing similar cases and a decision by the Karnataka High Court, ruled in favor of the assessee, stating that the late fee could not be charged for TDS deducted before this date.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 840911 (ITAT-NAGPUR)
• Duration Of Justice: 9 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 08-05-2025
• Other Referred Cases: DIG Medical Composite Hospital CRPF Vs ACIT (TDS), Rajyas Software Private Limited Vs ACIT (CPC-TDS), Fatheraj Singhvi Vs Union of India
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SURJIT KUMAR SAHA
• Assessee Lawyers: KAPIL HIRANI
• Keywords: Set aside; Principle of natural justice; TDS

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “NAGPUR” BENCH, NAGPUR BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER & SHRI KHETTRA MOHAN ROY, ACCOUNTANT MEMBER ITA No. 302/NAG/2025 (AY: 2013-14 / 2014–15) (Physical hearing) DIGP GC CRPF, Nagpur Offices of the DIGP Group Centre, Hingna Road, Digdoh Hills, MIDC Area, Nagpur, Maharashtra – 440019. [PAN: AAAAGD0143E] Vs DCIT, Central Processing Cell, TDS, TDS CPC, Aayakar Bhawan, Sector –3, Vaishali, Ghaziabad, Uttar Pradesh – 201010. Appellant / Assessee Respondent / Revenue Assessee by Shri Kapil Hirani, Advocate Revenue by Shri Surjit Kumar Saha, Sr. DR Date of hearing 25.02.2026 Date of pronouncement 25.02.2026 Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by the assessee is directed against the order of National Faceless Appeal Centre, Delhi (NFAC)/learned Commissioner of Income Tax (Appeals) (in short, the ld. CIT(A)) dated 10/03/2025 for the Assessment Year (AY) 2014–15. The assessee has raised following grounds of appeal: “1. On the facts and circumstances of the case and in law, the CIT(A) grossly erred in dismissing the appeal of the Appellant ex parte, without giving proper opportunity of hearing and without considering the facts and merits of the case, which makes the order of CIT(A) illegal and violative of principles of natural justice and accordingly liable to be set aside and the appeal of the Appellant deserves to be properly adjudicated on merits as per law and in the interest of justice. 2. On the facts and circumstances of the case and in law, the DCIT, CPC TDS grossly erred in levying and the CIT(A) grossly erred in confirming the levy of late fees of Rs. Printed from counselvise.com DIGP GC CRPF ITA No. 302/Nag/2025 2 60,700/- U/s 234E of the Income Tax Act, 1961. The late fees levied U/s 234E is illegal, bad in law, invalid and deserves to be cancelled accordingly to law. 3. The appellant craves leave to add, amend, alter, vary and / or withdraw any or all the above grounds of appeal with the kind permission of the Hon’ble Tribunal.” 2. At the outset of hearing, the learned Authorised Representative (ld. AR) of the assessee submits that this appeal relates to levy late fee of under section 234E in respect of quarter two of Assessment Year 2013–14. No such late fee could be charged prior to 01.06.2015 as clause (c) to section 200A(1) was inserted only from 01.06.2015. On similar set of fact in assessees group case, similar late fees for various quarters for A.Y. 2014–15 and 2015–16 were deleted in ITA Nos. 176/Nag/2019 to 181/Nag/2019 dated 21.02.2020. 3. On the other hand, the learned Senior Departmental Representative (ld. DR) for the Revenue relied upon the order of ld. AO. 4. We have considered the rival submissions of both the parties and find that find that on similar set of facts similar levy of late fee was deleted by this Tribunal in in DIG Medical Composite Hospital CRPF Vs ACIT (TDS) in ITA Nos. 176/Nag/2019 to 181/Nag/2019 dated 21.02.2020 by following the decision of its earlier decision in Rajyas Software Private Limited Vs ACIT (CPC-TDS) in ITA No. 208/Nag/2019. We further find that while deleting similar late fee our predecessor relied on the decision of Karnataka High Court in Fatheraj Singhvi Vs Union of India (73 taxmann.com 252 (Kant) wherein it was held that amendment in section 200A(1) came into effect only on 01.06.2015 with prospective effect and no computation of fee for the demand or the intimation for the fee under section 234E could be Printed from counselvise.com DIGP GC CRPF ITA No. 302/Nag/2025 3 made for the TDS deducted prior to 01.06.2015. thus, we find that the grounds of appeal raised by the assessee are covered in favor of the assessee. 5. In the result, this appeal of assessee is allowed. Order announced in open court on 25th February 2026 at the time of hearing. Sd/- Sd/- KHETTRA MOHAN ROY PAWAN SINGH ACCOUNTANT MEMBER JUDICIAL MEMBER Nagpur: Dated: 25/02/2026 Biswajit Copy of the order forwarded to: (1) The Assessee; (2) The Revenue; (3) The PCIT / CIT (Judicial); (4) The DR, ITAT, Nagpur; and (5) Guard file. By order Assistant Registrar ITAT, Nagpur Printed from counselvise.com "