Income Tax Appellate Tribunal (ITAT) of Amritsar bench, entertained by M.L. Meera (Accountant Member) and Anikesh Banerjee (Judicial Member) upheld the decision of the Commissioner of Income Tax (Appeals) [CIT(A)] National Faceless Appeal Centre (NFAC) that to levy the late fee on the assessee on filing Tax Deduction Source (TDS) late.
The appeal was filed by the assessee against the order passed by the CIT(A), (NFAC), in respect of Assessment Year 2020-21.
This appeal only questions the charging of a late fee under section 234E of the Income Tax Act, totaling Rs. 30,600.
In this case, the counsel of the assessee filed 1st adjournment application dated 23.09.2020 stating therein that due to heavy rush for filing of income tax return, the requisite information could not be collected and prepared.
Further, considering the request of the Assessee Representative (AR), the case was adjourned to 10.11.2022. Again the AR has filed an adjournment application, by repeating a similar reason.
However, considering a technical issue of levy of penalty under section 234E of Income Tax Act charged by the Assessing Officer (AO) and confirmed by the CIT(A) under the mandatory provisions of law.
The assessee submitted before the AO that the delay was due to the Covid outbreak. Also argued that the period extended till 31st December 2020 to file the returns. With these submissions, the appellant pleaded for deletion of late fee levied.
After hearing the counsel for the department, the tribunal observed that on the perusal of records and the impugned order, it is noted that the time limit for filing of 4th quarter TDS statements was extended only up to 31-07-2020 in view of COVID situation.
Admittedly, it is not disputed that the Central Processing Centre (TDS) had levied these fees for the delay beyond 31.07.2020 only. The CIT(A) has been justified in not accepting the argument that she was not a person responsible for deduction of tax.
It was added that as per the provisions of sec 200(3), any person deducting tax shall after paying the tax deducted to the credit of the Central Government, required to submit the TDS statement within prescribed time.
The bench upheld the decision of the CIT(A) who justified in confirming the finding of the CPC (TDS) in levying late fee under section 234E of Income Tax Act amounting to Rs 30,600/- as per the law. Accordingly, the bench dismissed the appeal.
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