DIGP GC CRPF, NAGPUR V. DCIT CPC (TDS), GHAZIABAD

ITA 299/NAG/2022

AI Insights

The case involves fourteen appeals by the DIGP Group Centre CRPF against the late fees imposed for delayed filing of TDS returns under section 234E of the Income Tax Act, 1961. The appeals were heard by the Income Tax Appellate Tribunal Nagpur Bench. The core issue was the constitutional validity and application of section 234E, which allows for the imposition of late fees for delays in filing TDS returns. The Tribunal referenced a precedent set by the Bombay High Court, which confirmed that the late fee is not punitive but a charge for additional services required due to late filing. The Tribunal found no grounds to overturn the automatic levy of these fees, leading to the dismissal of all appeals.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 136770 (ITAT-NAGPUR)
• Duration Of Justice: 10 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-07-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 16-07-2023
• Assessment Year: misc
• Appeal Filed On: 15-09-2022
• Other Referred Cases: Shri Rashmikantr Kundalia and Others v. Union of India, 373 ITR 268 (Bom.)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RASHMI MATHUR
• Keywords: TDS
• Section: 234E

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH, NAGPUR – VIRTUAL COURT BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI S. S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपील सं. / ITA Nos.296 to 309/NAG/2022 Assessment Years : 2016-17, 2017-18, 2018-19 & 2019-20 DIGP Group Centre CRPF, D/o The Office of the DIGP Group Centre, Hingna Road, Digdoh Hills, MIDC Area, Nagpur- 440019. PAN : AAAGD0143E Vs. DCIT, CPC (TDS), Ghaziabad. Appellant Respondent आदेश / ORDER PER BENCH : These bunch of fourteen (14) appeals preferred by the assessee for the various assessment years mentioned in the caption emanates from the separate orders of the National Faceless Appeal Centre, Delhi [‘NFAC’] levying late fee u/s 234E of the Income Tax Act, 1961 (‘the Act’) for delay in filing the TDS returns. Assessee by : Shri Kapil Hirani Revenue by : Smt. Rashmi Mathur Date of hearing : 17.07.2023 Date of pronouncement : 18.07.2023 ITA Nos.296 to 309/NAG/2022 2 2. Since the identical facts and common issues are involved in all the above fourteen appeals of the assessee, we proceed to dispose of the same by this common order. 3. At the outset, the Hob’ble Jurisdictional High Court in the case of Shri Rashmikantr Kundalia and Others v. Union of India, 373 ITR 268 (Bom.) while adjudicating the constitutional validity of the provisions of section 234E of the Act observed that the provisions of section 234E empowering the Assessing Officer to levy late fee for the delay or failure to deliver or cause to be delivered return/statements of tax deducted or collected at source within the prescribed time limit under the provisions of sub-section (3) of section 200 of the Act, the fee is held to be not punitive, but a fee which is fixed charge for the extra service, which the Department has to provide due to late filing of the return/statements of tax deducted or collected at source. The fee sought to be levied u/s 234E is not in the guise of tax or penalty. The provisions of section 234E does not empower the Assessing Officer to condone the delay in late filing of the return/statements of tax deducted or collected at source nor the appeal is provided from an arbitrary order passed u/s 234E of the Act. In such a scenario, the levy of ITA Nos.296 to 309/NAG/2022 3 late fee u/s 234E is automatic, no appeal lies. Accordingly, the appeals filed by the assessee stand dismissed. 4. In the result, all the above fourteen appeals filed by the assessee stands dismissed. Order pronounced on this 18 th day of July, 2023. Sd/- Sd/- (S. S. VISWANETHRA RAVI) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 18 th July, 2023. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, नागपुर / DR, ITAT, Nagpur. 5. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.