Delay should be condoned unless Malafides on Conduct of party: ITAT remits issue of Levy of Fee under Income Tax Act to CIT(A) [Read Order]

The Banglore Bench of Income Tax Appellate Tribunal (ITAT) while remitting the issue of levy of fee under Income Tax Act to CIT(A) held that Delay should be condoned unless mala fides on conduct of party.

The assessee, M/s.Sameer Granites Pvt.Ltd. filed belatedly the TDS statements in Form 24Q and 26Q for various quarters for assessment years 2013- 2014, 2014-2015 and 2015-2016. The statements were processed by the Assessing Officer vide orders passed u/s 200A of the Income Tax Act, wherein fee u/s 234E of the Act was levied for late filing of TDS statements.

Aggrieved by the orders passed u/s 200A of the Act for various quarters levying fees u/s 234E of the Act, the assessee preferred appeals before the first appellate authority. All the appeals filed before the first appellate authority was barred by limitation. The assessee had filed petitions for condonation of delay accompanied by affidavits of the Director of the assessee-company stating therein the reason for belated filing of the appeals before the CIT(A). The CIT(A) dismissed the appeals in limine without condoning the delay.

The coram of B.R.Baskaran and George George K. has ruled that the submissions of the assessee cannot be brushed aside as false. In the instant case, prima facie, the issue on merits is seen covered in favour of the assessee by the judgement of the jurisdictional High Court, cited supra. Taking note of judicial pronouncement where the expression “sufficient cause” has received a liberal construction, we condone the delay of filing these appeals before the CIT(A). 

“We deem it appropriate to remit the issue of levy of fee u/s 234E of the Act through intimation u/s 200A of the Act to the file of the CIT(A) (since the CIT(A) has not decided the issue on merits). The CIT(A) shall afford a reasonable opportunity of being heard to the assessee before a decision is taken in this matter. It is ordered accordingly,” the ITAT ordered

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