The Pune bench of the Income Tax Appellate Tribunal (ITAT) recently held that the levy of a fee under Section 234E of the Income Tax Act for default in TDS statements was applicable since 1st June 2015, as per the amendment to Section 200A of the Income Tax Act.
The Assessee M.E.S. High School, Solapur defaulted t in furnishing TDS statement for Quarters 3 of A.Y. 2013-14 and 2014-15 .The CIT(A) and NFAC, Delhi upheld the Assessing Officer’s decision on the levy of a fee under Section 234E of the Income Tax Act.
The bench consisting of two members, the Judicial Member S.S. Viswanethra Ravi and the Vice President R.S. Syal observed that the fee for default in furnishing the TDS statements have been imposed on the assessee under Section 234E of the Income Tax Act for the 3rd quarter of the financial years 2012-13 (A.Y. 2013-14) and 2013-14 (A.Y. 2014-15).
Section 200A deals with processing of TDS statements of tax deducted at source and Clause (c) of sub-Section (1) of Section 200A was inserted by the Finance Act 2015 with effect from 01-06-2015 providing for the levy of fee under Section 234E of the Income Tax Act.
In such circumstances, levy of such fee under Section 234E can be levied only after 01-06-2015 for the default committed by the assessee. The Bench further added that “We find that the period covered in the present subject appeals before us is Quarter 3rd of financial years 2012-13 (A.Y. 2013-14) and 2013-14 (A.Y. 2014-15). Therefore, we hold that the amendment by insertion of Clause (c) to sub- 3 ITA Nos.96 & 97/PUN/2023 Section (1) of Section 200A of the Income Tax Act is not applicable.”
In result, the appeal of the assessee was allowed.
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