The Income Tax Appellate Tribunal (ITAT), Pune has ruled that, If delay in filing of TDS statement is proved then late fee under sections 234E and 200A is automatic.
The Assistant Commissioner of Income Tax, CPC (TDS), Ghaziabad issued an intimation u/s 200A and 154 of the Income Tax Act, 1961 for the assessment year 2016-17 levying a late fee under the provisions of section 234E of Rs.77,220/- by stating that the appellant, Gangamai College of Engineering had failed to file the quarterly statement of TDS of the second quarter for the financial year 2015-16 in Form No.26Q. Accordingly, the ACIThad levied a penalty of late fee of Rs.77,220/- u/s 234E by intimation dated 02.02.2018 passed u/s 200A and 154 of the Act.
Being aggrieved by the above intimation, an appeal was filed before the CIT(A). The CIT(A) dismissed the appeal on the ground that the assessee had failed to demonstrate sufficient and reasonable cause for delay in filing the quarterly statement of TDS of second quarter for financial year 2015-16 in Form No.26Q.Being aggrieved by the above decision of the CIT(A), the appellant is in appeal before the Tribunal.
The bench consisting of Inturi Rama Rao, Accountant Member and S SViswanethra Ravi, Judicial Member held that “The issue in the present appeal relates to the levy of late fee u/s 234E and 200A of the Act. It is an undisputed fact that there is a delay in filing the submission of the Quarterly Statement of TDS. When there is a delay, a late fee u/s 234E and 200A of the Act is automatic and there is no discretion not to levy late fees with the TDS Officer. It is not the case of the appellant that there is denial of liability for late fee u/s 234E of the Act.”
Subscribe Taxscan Premium to view the JudgmentBuy books of essential tax practice with exciting offers at shopscan.in
