Harjeet Singh, Sirsa V. ACIT, CPC-(TDS), Ghaziabad

ITA 734/DEL/2019

AI Insights

The case involves an appeal by Harjeet Singh against the order of the ACIT, CPC (TDS), Ghaziabad, which imposed a late fee under Section 234E of the Income-tax Act for the late filing of TDS returns. The primary legal contention was whether the late fee could be applied to defaults occurring before the amendment to Section 200A, which allowed for such fees starting from June 1, 2015. The Tribunal examined the legislative changes and relevant case law, particularly the decision in Raj Veer Singh vs. ACIT-CPC-TDS, which favored the assessee's position. The Tribunal concluded that since the default occurred before the specified date of the amendment, the imposition of the late fee was incorrect and thus ordered its deletion.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 115786 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 17-01-2023
• Assessment Year: 2013-2014
• Appeal Filed On: 31-01-2019
• Other Referred Cases: Raj Veer Singh vs. ACIT-CPC-TDS ITA No.3681/Del/2017
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: TDS
• Section: 154; 234E; 200A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : C : NEW DELHI BEFORE SHRI C.M. GARG, JUDICIAL MEMBER AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ITA No.734/Del/2019 Assessment Year: 2013-14 Harjeet Singh, Maal Godown Road, Dabwani Road, Sirsa, Haryana. PAN: AVZPS5143G Vs. ACIT, CPC (TDS), Ghaziabad. (Appellant) (Respondent) Assessee by : Shri Pulkit Saini, Advocate Revenue by : Shri Anuj Garg, Sr. DR Date of Hearing : 18.01.2023 Date of Pronouncement : 27.02.2023 ORDER PER C.M. GARG, JM: This appeal filed by the assessee is directed against the order dated 28.06.2018 of the CIT(A)-2, Gurgaon, relating to Assessment Year 2013-14. 2. The sole issue in this appeal pertains to the order of the ACIT, CPC (TDS), Ghaziabad, passed u/s 154 of the Income-tax Act, 1961 (for short, ‘the Act’) pertaining to levy of late fee of different amount under section 234E of the Act vide intimation u/s 200A of the Act raising the demand of fee u/s 234E of the Act. ITA No.734/Del/2019 2 3. We have perused the first appellate order as well as the order passed under Section 234E of the Act. The Revenue has imposed late fee under Section 234E of the Act for default in furnishing TDS return within time stipulated in law. 4. The machinery provision of Section 200A of the Act provides for processing of statement of tax deducted at source which has been amended by the Financial Act, 2015 w.e.f. 01.06.2015 and new clauses (c) and (d) has been inserted in Section 200A of the Act. By virtue of such amendment, while processing of TDS statement, the late fee, if any shall be computed in accordance with provisions of Section 234E of the Act. As a corollary, prior to amendment under Section 200A of the Act, levy of fee under Section 234E during processing of TDS statement is not tenable. 5. Since the amendment has been inserted under Section 200A of the Act w.e.f. 01.06.2015, the default committed by the assessee, if any, prior to the amendment will not attract fee under Section 234E of the Act. 6. The captioned appeal involving levy of late filing fee under Section 234E is in relation to period prior to 01.06.2015. Thus, late filing fee under Section 234E is contrary to the legislative mandate as well as plethora of decisions of the Co-ordinate Bench of Delhi Tribunal binding upon the AO. The Co-ordinate Bench of Delhi ITAT in the case of Raj Veer Singh vs. ACIT-CPC-TDS ITA No.3681/Del/2017 order dated 09.07.2021 has decided the issue in favour of the Assessee. ITA No.734/Del/2019 3 7. Since the demand under charging Section 234E for late filing of TDS return is arising from belated TDS statements filed prior to 01.06.2015, the impugned late fee imposed requires to be deleted. 8. In the result, the captioned appeal of the assessee is allowed. Order pronounced in the open court on 27.02.2023. Sd/- Sd/- (PRADIP KUMAR KEDIA) (C.M. GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 27 th February, 2023. dk Copy forwarded to : 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asstt. Registrar, ITAT, New Delhi