FULE AMBEDKAR COLLEGE OF SOCIAL WORK,GADCHIROLI V. ITO TDS 52(3), CHANDRAPUR

ITA 226/NAG/2025

AI Insights

The case involves Fule Ambedkar College of Social Work Gadchiroli, the appellant, contesting a late fee of \\u20b9128,000 imposed by the ITO (TDS) under section 234E of the Income Tax Act, 1961, for the Assessment Year 2013-14. The fee was related to the late filing of tax statements for Quarter IV of AY 2013-14. The assessee argued that they did not receive the order imposing the late fee until a demand notice was issued, leading to an inordinate delay in filing the appeal. The tribunal acknowledged the technical issues and the remote location of the assessee, which contributed to the delay. Furthermore, the tribunal referenced several judicial precedents that supported the assessee's position that late fees could not be imposed for periods prior to 01/06/2015, the date from which new provisions for such fees were enacted.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 669033 (ITAT-NAGPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2013-2014
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SURJITH KUMAR SAHA; LD.
• Assessee Lawyers: MOHD. LAKKADSHA; LD
• Keywords: Reasonable cause; TDS

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH : NAGPUR BEFORE SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER & SHRI K.M. ROY, ACCOUNTANT MEMBER I.T.A.No. 226/NAG/2025 (Assessment Year 2013-14) Fule Ambedkar College of Social Work Gadchiroli, SSGVS Building, Mul Road, Revenue Colony, Gadchiroli. PAN : NGPF00316B vs. ITO (TDS)–52(3), Chandrapur Circle. (Appellant) (Respondent) For Assessee : Shri Mohd. Lakkadsha, Ld. CA For Revenue : Shri Surjith Kumar Saha, Ld. Sr.DR Date of Hearing : 23.06.2025 Date of Pronouncement : 23.06.2025 ORDER PER K.M. ROY, AM: This appeal has been preferred by the assessee against the order dated 14/01/2025 impugned herein passed by the Ld. Commissioner of Income Tax (Appeals)/NFAC, Delhi [in short, “Ld.Commissioner”] u/sec. 250 of the Income Tax Act, 1961 (for short, “the Act”) for the Assessment Year (for short, “AY”) 2013-14. 2 ITA.No. 226/NAG/2025 2. Admittedly, there was a delay of more than 06 years in filing the appeal before the Ld. Commissioner challenging the intimation / order dated 24/01/2016 wherein late fee of ` 1,32,000/– has been levied u/sec. 234E of the Act. The assessee has claimed that no physical order was sent to the assessee and the assessee is working for welfare of the weaker sections of the people and even filed an application under Direct Tax Vivad se Vishwas Scheme, 2024 for resolution of dispute and the same was rejected by the designated authority. The learned A.R. stated that there was sufficient and reasonable cause for this delay. 3. On the contrary, ld.DR refuted the claim of the assessee and submitted that concurrent findings of lower authorities need not be disturbed. 4. We have given thoughtful consideration to the peculiar facts and circumstances of the case. No doubt, the delay is inordinate, however, it is a fact that the intimation dated 24/01/2016 was not served upon the assessee in physical form. The assessee is situated in a remote area and, therefore, technical glitches/unawareness of the e–portal, could be a plausible reason for not receiving and complying with the impugned intimation/order dated 24/01/2016. However, once demand notice was issued by the Department, then only the assessee filed first appeal before the Ld. Commissioner. Admittedly, the issue is covered in favour of the assessee, since late fee pertains to the Quarter–IV for A.Y. 2013–14 as it has been held in numerous judicial precedents that late fee cannot be imposed for the period prior to 01/06/2015. Therefore, considering the peculiar 3 ITA.No. 226/NAG/2025 facts and circumstances in totality and for just and proper decision of the case and substantial justice, we are inclined to condone the delay. Thus, the same is condoned. 5. Coming to the merits of the case as observed above, the issue is squarely covered in favour of the assessee as this is pertains to the period prior to 01/06/2015 wherein an amendment of new provision was enacted for levy of late fee in filing of regular statements and, therefore, we are inclined to delete the addition by allowing the appeal of the assessee. Thus, appeal of the assessee stands allowed. 6. In the result, appeal of the Assessee is allowed. Order pronounced in the open Court on 21.06.2025. Sd/- Sd/- (NARENDER KUMAR CHOUDHRY) (K.M. ROY) Judicial Member Accountant Member vr/- Copy to 1. The appellant 2. The respondent 3. The CIT(A), Nagpur concerned. 4. D.R. ITAT, Nagpur Bench, Nagpur. 5. Guard File. By Order //True Copy // Sr. Private Secretary, ITAT, Nagpur Bench. "