The Amritsar Bench of Income Tax Appellate Tribunal (ITAT) has held that belated filing of Tax Deduction at Source return contemplated non levy of fee under Section 234E of the Income Tax Act was not an apparent mistake and could not be the subject matter under Section 154 of the Income Tax Act.
The assessee, Dhillon and Simran Liver FibroScan Centre had filed appeal against order passed by the Assessing Officer thereby refusing the assessee’s request for rectification of the demand. It was submitted that the appeal has been rejected without appreciating the fact of the case that the Assessing Officer had refused to resolve the demand being created towards the fee under Section 234E of the Income Tax at Rs.44,840/- as against Rs.8,968/-.
S. K. Maheshwari, on behalf of the revenue objected to the creation of excess demand against the late fee under Section 234E of the Income Tax Act.
Vedanshu Tripathi, who appeared on behalf of the revenue, relied upon the impugned order.
The two-member Bench of M. L. Meena, (Accountant Member) and SH Anikesh Banerjee, (Judicial Member) observed that, “TDS deduction in filing of TDS return and belated filing of TDS return contemplated into levying of fee u/s 234E of the Act is subject matter of verification of facts from record which is not covered under the provisions of section 154 of the Act where an apparent mistake of the record can only be rectified”.
The Bench further restored the matter to examine the issue of the levy of fee under Section 234E of the Income Tax Act after verification of facts as per law.
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