SHRIKRISHNA LAXMINARAYAN THAKUR,SINDHUDURGA V. INCOME TAX OFFICE, TDS, WARD, KOLHAPUR, KOLHAPUR

ITA 2302/PUN/2024

AI Insights

This case involves a series of appeals by the assessee, Shrikrishna Laxminarayan Thakur, against the orders of the National Faceless Appeal Centre (NFAC), Delhi, which confirmed the imposition of late fees under section 234E of the Income-tax Act, 1961, for delayed filing of TDS returns for various quarters from the assessment years 2013-14 to 2016-17. The appeals were consolidated due to the identical grounds raised concerning the late fees imposed for each respective quarter. The Tribunal examined whether the late fees were applicable for returns processed before the amendment to section 200A came into effect on 01.06.2015.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 41386 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Other Referred Cases: Olari Little Flower Kuries Pvt. Ltd. Vs. Union of India and others, Jiji Varghese VS. ITO(TDS) & Ors., Dadasaheb Vitthalrao Urhe Vs. ITO (TDS), Pune
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARVIND DESAI
• Assessee Lawyers: DEEPA KHARE
• Keywords: TDS
• Section: 200A; 13

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “B”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER Sl. No. ITA No(s). Name of the Applicant Name of Respondent Asst. Year Quar ter Form 1-9 ITA Nos.2299 to 2307/PUN/2024 Shrikrishna Laxminarayan Thakur, Khalchawada Vengurla, Mhapan Sindhudurga-416522, Maharashtra TAN : KLPSO6134C ITO TDS Ward, Kolhapur 2013-14 2014-15 2014-15 2014-15 2014-15 2015-16 2015-16 2015-16 2015-16 Q4 Q1 Q2 Q3 Q4 Q1 Q4 Q3 Q2 26Q 26Q 26Q 26Q 26Q 26Q 26Q 26Q 26Q 10-11 ITA Nos.2165 & 2166/PUN/2024 Shrikrishna Laxminarayan Thakur, Khalchawada Vengurla, Mhapan Sindhudurga-416522, Maharashtra PAN : AAQPT5571P ACIT, CPC-TDS, Ghaziabad 2013-14 2013-14 Q3 Q2 26Q 26Q 12 ITA No. 1322/PUN/2024 -do- CIT, Delhi 2013-14 Q2 26Q 13 ITA No. 2308/PUN/2024 -do- ITO TDS Ward, Kolhapur 2016-17 Q1 26Q Assessee by : Smt. Deepa Khare Revenue by : Shri Arvind Desai Date of hearing : 07.01.2025 Date of pronouncement : 23.01.2025 Shrikrishna Laxminarayan Thakur Group 2 आदेश / ORDER PER BENCH: This batch of 13 appeals at the instance of assessee are directed against the different orders dated 09.11.2023 passed by the National Faceless Appeal Centre (NFAC), Delhi u/s.250 of the Income-tax Act, 1961 (in short ‘the Act’). The only issue raised in these appeals is the charging of interest u/s.234E for the quarters arising in Assessment Years 2013-14, 2014-15, 2015-16 and 2016-17. 2. Identical grounds have been raised by assessee in all these appeals. We therefore proceed to dispose of these appeals by this consolidated order for the sake of convenience. 3. Brief facts common to these appeals are that TDS returns for the assessment years 2013-14, 2014-15, 2015-16 and 2016-17 corresponding to respective quarters captioned above were filed belatedly. The same were processed by Central Processing Cell (in short “CPC”) u/s.200A levying fee u/s.234E of the Act. The assessee filed rectification applications u/s.154 of the Act for removal of late fee u/s.234E but failed to succeed. Aggrieved assessee preferred appeal(s) before Ld. CIT(A)/NFAC but failed to get any relief. Now the assessee is in appeal(s) before the Tribunal. Shrikrishna Laxminarayan Thakur Group 3 4. Ld. Departmental Representative supported the orders passed by the lower authorities and vehemently argued for confirming the late fee levied u/s.234E of the Act. 5. We have heard both the parties and perused the records placed before us. The solitary issue in this batch of appeals is against the levy of fee u/s.234E of the Act by CPC for delay in filing the TDS quarterly returns and Ld. CIT(A)/NFAC confirming such levy of fee u/s.234E for filing the Quarterly returns after the due date. 6. We observe that the issue of levy of fee u/s.234E is no more res integra by virtue of several decisions rendered by this Tribunal on this very issue. It shows that the late fee u/s.234E has been imposed for the delay in furnishing the statements for quarters, in the returns processed u/s.200A of the Act prior to 01.06.2015 and post 01.06.2015. As regards the fate of fees levied u/s.234E of the Act for the returns filed and processed before 01.06.2015, we find the Coordinate Benches of this Tribunal after considering the judicial pronouncements have been taking a consistent view that the amendment brought in Finance Act, 2015 w.e.f. 01.06.2015 under Section 200A (clause (c)] of the Act is prospective in nature thereby empowering the Revenue authorities to charge fee u/s.234E of the Act only after 01.06.2015. In that view of the matter, Revenue authorities are empowered to impose such late fee Shrikrishna Laxminarayan Thakur Group 4 u/s.234E only for the default committed after 01.06.2015 and not prior to that. The Hon’ble Kerala High Court in Olari Little Flower Kuries Pvt. Ltd. Vs. Union of India and others (2022) 440 ITR 26 (Kerala) has affirmed the non-imposition of fee for the period prior to 01.06.2015. Similar view has been taken in Jiji Varghese VS. ITO(TDS) & Ors. (2022) 443 ITR 267 (Ker) holding that no fee u/s.234E can be imposed for the periods of the respective A.Ys. prior to 1st June, 2015. Similar view was also taken by this Tribunal in the case of Dadasaheb Vitthalrao Urhe Vs. ITO (TDS), Pune in ITA Nos.1286 to 1309/PUN/2023, dated 29.02.2024. Thus, it is seen that the issue raised in the following appeals is covered in favour of the assessee as the returns u/s.200A(c) were processed before 01.06.2015. Sl. No. ITA No(s). Asst. Year Quar ter Form Order date 1 ITA Nos.2299/PUN/2024 2013-14 Q4 26Q 20.01.2014 2 ITA No.2300/PUN/2024 2014-15 Q1 26Q 15.03.2014 3 ITA No.2301/PUN/2024 2014-15 Q2 26Q 15.03.2014 4 ITA No.2302/PUU/2024 2014-15 Q3 26Q 15.03.2014 5 ITA No.2303/PUN/2024 2014-15 Q4 26Q 11.10.2014 6 ITA No.2165/PUN/2024 2013-14 Q3 26Q 20.01.2014 7 ITA No.2166/PUN/2024 2013-14 Q2 26Q 20.01.2014 8 ITA No.1322/PUN/2024 2013-14 Q2 26Q 20.01.2014 Shrikrishna Laxminarayan Thakur Group 5 7. Following the precedent, we overturn the impugned orders on this sole issue and allow the effective grounds of appeal raised by the assessee in all these eight appeals. 8. So far as the following appeals corresponding to respective quarter are concerned, the late fee u/s.234E has been imposed for the delay in furnishing the statements and the returns have been processed u/s.200A of the Act after 01.06.2015. In light of our observation above, it is held that penalty u/s.234E is leviable since amendment brought in Finance Act, 2015 w.e.f. 01.06.2015 under Section 200A (clause (c)] of the Act is prospective in nature and Revenue authorities are empowered to levy penalty u/s.234E. However, penalty u/s.234E has to be computed from 01.06.2015 till the processing of the return for which necessary calculation to be made at the end of the concerned Revenue authority. The details of appeals whose returns have been processed after 01.06.2015 are given below : Sl. No. ITA No(s). Asst. Year Quar ter Form Order date 1 ITA Nos.2304/PUN/2024 2015-16 Q1 26Q 27.10.2015 2 ITA No.2305/PUN/2024 2015-16 Q4 26Q 28.10.2015 3 ITA No.2306/PUN/2024 2015-16 Q3 26Q 24.10.2015 Shrikrishna Laxminarayan Thakur Group 6 4 ITA No.2307/PUU/2024 2015-16 Q2 26Q 24.10.2015 5 ITA No.2308/PUN/2024 2016-17 Q1 26Q 25.08.2016 Accordingly, the grounds of appeal raised by the assessee in respect of the above-mentioned five appeals are partly allowed. 9. In the result, all the appeals of the assessee are disposed off as per terms indicated above. Order pronounced on this 23rd day of January, 2025. Sd/- Sd/- (VINAY BHAMORE) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 23rd January, 2025. Satish आदेश क\u0002 \u0003ितिलिप अ\tेिषत / Copy of the Order forwarded to : 1. अपीलाथ\f / The Appellant. 2. \r\u000eयथ\f / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय \rितिनिध, आयकर अपीलीय अिधकरण, “B” ब\u0014च, पुणे / DR, ITAT, “B” Bench, Pune. 5. गाड\u0004 फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. "