Assessing Officer has no Power u/S 200A to Levy Late Fee u/S. 234E Prior to Amendment of Law: ITAT set-aside Order

The Hyderabad bench of the Income Tax Appellate Tribunal ( ITAT ) has recently held that the assessing officer has no power under section 200A Income Tax Act 1961 to levy late fee under section 234E of the Income Tax Act prior to the amendment of the law.

Section 234E of the Income Tax Act states that when a person fails to pay TDS he/she shall be liable to pay by way of fee an amount not exceeding 200 for every day during which the failure.

Assessee Ochre Media Private Limited is a company engaged in the Media business. Assessee filed its TDS quarterly statements for all four quarters of Financial Year 2013-14 belatedly that is after the due date.

The assessing officer comprising late filing fees under section 234E of the Income Tax Act and interest under section 220(2) of the Income Tax Act the total amount demanded from the assessee for the said financial year was Rs.3,44,770/-

Against the order assessee filed an appeal before CIT(A) who rejected the appeal therefore assessee filed before the tribunal.

H. Srinivasulu council for the assessee submitted that “respondent had levied late fee under section 234 E Of Income Tax Act for a period prior to 01.06.2015 which is not maintainable Assessing Officer has was no power under section.200A of Income Tax Act to levy any late fee under section 234E Income Tax Act prior to the amendment of law on 01.06.2015.”

Kumar Adithya council for the revenue strongly relied upon the order of lower authorities.

Thereafter the tribunal of Shri Rama Kanta Panda, Accountant Member and Laliet Kumar, Judicial Member while allowing the appeal of the assessee observed that” late filing fee under section 234E of the Income Tax Act has not rightly been charged in the intimation issued under section 200A/206CB of the Income Tax Act while processing the TDS returns/statements as the enabling clause (c) having been inserted in the section with effect from  01.06.2015.”

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates