Sumel Heights Pvt Ltd, New Delhi V. ITO WARD - 77(2), New Delhi

ITA 1782/DEL/2020

AI Insights

The case involves Sumel Heights Pvt. Ltd., which appealed against the orders of the Commissioner of Income Tax (Appeals) concerning the levy of late fees under Section 234E of the Income Tax Act for the assessment years 2013-14, 2014-15, and 2015-16. The appeals were directed against the late fees imposed for default in furnishing TDS returns within the time stipulated by law. The tribunal examined the amendments to Section 200A of the Act, effective from 01.06.2015, which impacted the processing of TDS statements and the computation of late fees. The tribunal found that the late fees for periods prior to this amendment were not applicable, referencing the decision in Raj Veer Singh vs. ACIT - CPC - TDS ITA No. 3681/Del/2017.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121713 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 3 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-02-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 05-02-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 26-10-2020
• Other Referred Cases: Raj Veer Singh vs. ACIT- CPC - TDS ITA No. 3681/ Del/2017
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “G” DELHI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER I.T.As No.1781, 1782 & 1783/DEL/2020 Assessment Years 2013-14, 2014-15 & 2015-16 Sumel Heights Pvt. Ltd., 10/6, Vasant Vihar, New Delhi. v. ITO, Ward-77(2), New Delhi. TAN/PAN: AAKCS6867J (Appellant) (Respondent) Appellant by: None Respondent by: Shri Jeetandra Kumar Kale, Sr.DR Date of hearing: 06 02 2023 Date of pronouncement: 15 02 2023 O R D E R PER PRADIP KUMAR KEDIA, A.M.: T he c ap ti o ne d a p p e a l s h a v e b e e n fi le d a t th e i n s ta nc e o f t he A sse s se e a g a i n st t he o r de rs o f t h e Co m m i s si on e r o f I n c o m e T a x (A p pe al s) -V II I, N e w D e l hi [ ‘ C I T (A ) ’ i n sh o r t ] a l l da t e d 2 8. 08 . 2 02 0 c on c e rn i n g l e vy o f l at e fe e o f d i f fe re nt a m o u n t u n de r S e c t io n 2 34 E o f t h e A c t vi d e in t i m a t i o n un de r S e ct i on 20 0 A o f t he A c t. 3. W e ha ve p e r us e d t he f i r s t a p pe l l a t e o r de r as w e ll a s th e or d e r pa s se d un de r S e c t i o n 23 4 E o f t h e A ct . T he Re ve n ue ha s i mp os e d l a te fe e u nd e r S e ct i o n 23 4E o f t h e A c t fo r de fa ul t i n furn i sh i n g TD S re t ur n w it h i n ti m e s t i p u l a t e d i n l aw . 4. T he m a c h i na ry p r o vi s i o n o f S e c ti on 2 00A o f t h e Ac t pr o vi d e s fo r p r o c e ss in g o f s t a t e m e nt o f t a x de du c te d a t s ou rc e w hi c h ha s be e n a me nd ed b y t he F i na nc i a l A c t, 2 0 1 5 w . e . f. 0 1. 0 6 . 2 0 15 a n d n e w I.T.As No.1781, 1782 & 1783/Del/2020 2 c la us e s (c ) a n d ( d) ha s b e e n i n s e r t e d i n S e c t i o n 2 00 A o f t he A c t . B y vi r t u e o f s uc h a m e nd m e nt , w hi le p ro c e ss i n g o f T D S st a t e me n t, t h e l at e fe e , i f a n y sh a l l b e c o m pu te d i n a c c o r da n ce w it h p r ov i s i o n s o f S ec t i on 23 4 E o f th e A ct . A s a c o r ol l a ry, pr i o r t o am e nd m e nt u n de r S ec t i on 20 0A o f t h e A ct , l e v y o f f e e un d e r S e c ti o n 2 34 E d ur i n g pr o c e ss i n g o f TD S st a te m e n t i s no t t e n a bl e . 5. S i nc e t h e a me n d me nt ha s b ee n i ns e r t e d u nd er Se c tio n 2 0 0 A o f t he A c t w . e. f. 0 1. 0 6 . 2 01 5, t h e de fa ul t c o m mi t t ed by t he a ss e s se e , i f a ny, pr i o r t o t he a m e n d m e n t w i l l n o t a tt ra c t fe e u nd e r S e c t i o n 2 3 4E o f t h e A c t . 6. A l l t h e c a p t i o n e d ap p e a ls i n vo l vi n g l ev y o f l at e fi l i ng f ee un d e r S ec t i o n 23 4 E a re i n r el a t i o n t o p er i o d pr i o r t o 0 1. 0 6. 2 0 1 5. Th us, l a te fi l i ng f e e u n d e r S e ct i on 2 3 4 E i s c o nt ra ry to t h e l e gi sl a t i v e ma nd a te a s w e l l as p le t h o r a o f d ec i si o ns o f t he Co -o rd i n a te B e n c h o f D el h i T ri b u na l b i n d in g u p on th e A O . T h e C o -o rd i n at e Be nc h o f D el h i I T A T in t he c a s e o f R a j V ee r S in g h vs. A C IT -CP C - T D S IT A N o. 36 8 1/ D e l /2 01 7 or d e r d a t e d 09 . 0 7. 20 21 h a s d e ci de d t he i s su e i n fa v o u r o f t h e A sse s see . 7. S i nc e t h e d e m a n d u n d er c h a r gi n g S e c ti o n 2 3 4 E fo r la t e fi l in g o f T D S r e t u r n a r i s i ng fr o m b el a t ed T D S st a t e m e nt s fi l e d pr i o r t o 01 . 0 6. 2 0 1 5 , t he i m p u g ne d l a t e fe e i m p o se d re qu i r e s t o b e d el e t ed . 8. I n t he r e s ul t , al l t h e th r e e c a p t i on e d a pp e a l s of th e a s se ss e e a r e a ll ow e d. Order pronounced in the open Court on 15/02/2023. Sd/- Sd/- [NARENDER KUMAR CHOUDHRY] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /01/2023 Prabhat