The Agra Bench of Income Tax Appellate Tribunal ( ITAT ) adjudicating in favor of the assessee held that late fees under Section 234E of the Income Tax Act cannot be levied retrospectively.
The issue involved in the appeals is relating to the levy of late filing fee u/s 234E of the Act. The appellants in the present case have deposited TDS and are required to file quarterly TDS returns intimating the tax deducted at source from various payments made to various persons in each quarters for the financial relevant. The provisions for late filing fee u/s 234E has been inserted in clause (c) to Section 200A w.e.f. 1.06.2015 to ensure timely compliance on the part of deductors.
It was contended on behalf of the appellants that before making necessary amendment in S. 200A of the Act w.e.f. 01.06.2015, there was no enabling provisions u/s 200A of the Act for raising demand in respect of levy of penalty u/s 234E of the Act and thus in the absence of enabling provision for making such adjustment for levying late fee u/s 234E, no such late fee could be imposed by the AO. Furthermore, all the TDS returns statements filed are in respect of the period prior to the date 1.06.2015.
The Tribunal bench comprising of Judicial Member A.D. Jain and Accountant Member Dr. Mitha Lal Meena after considering the contentions of both the parties, restored back the present issue to CIT(A) to decide afresh as per law. As per the well established principles of Interpretation of Statutes, unless it is expressly provided or impliedly demonstrated, any provision of statute is to be read as having prospective effect and not retrospective effect. Hence, the Tribunal allowed the appeal filed by the assessee.
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