Facts of the Case

Bhartiya Shiksha Samiti Purvi Uttar Pradesh, an educational institution, filed TDS statements with delay. The Centralized Processing Cell (CPC), Bangalore issued an intimation under Section 200A levying late filing fee under Section 234E. The assessee challenged the levy before the appellate authority, contending that such fee could not be imposed through processing of TDS statements for the relevant period. The CIT(A) upheld the levy, leading the assessee to file an appeal before the Income Tax Appellate Tribunal.

Issues Involved

  1. Whether late filing fee under Section 234E could be levied while processing TDS statements under Section 200A.
  2. Whether such levy was valid for the relevant period in question.
  3. Whether the intimation issued by CPC was legally sustainable.

Petitioner’s (Assessee’s) Arguments

  • The assessee contended that the fee under Section 234E was wrongly imposed through Section 200A.
  • It was argued that the statutory provisions enabling such adjustment were not applicable for the relevant period.
  • The levy was claimed to be illegal and without authority of law.
  • The assessee sought deletion of the late fee.

Respondent’s (Revenue’s) Arguments

  • The Revenue submitted that late filing fee under Section 234E is mandatory for delayed filing of TDS statements.
  • CPC was justified in levying the fee during processing of returns.
  • The order of the CIT(A) confirming the levy was correct.

 Court Order / Findings (ITAT Allahabad)

The Tribunal examined the statutory framework governing processing of TDS statements and levy of late filing fees. It observed that the authority to levy fee under Section 234E through intimation under Section 200A became operative only after specific amendments.

For the period under consideration, such adjustment was not permissible. Accordingly, the Tribunal held that the levy of late filing fee through Section 200A was not sustainable and deleted the fee imposed.

Important Clarification

The Tribunal clarified that although Section 234E imposes a fee for delay in filing TDS statements, the mechanism for its computation and levy must strictly conform to statutory provisions. In the absence of enabling provisions at the relevant time, CPC cannot impose the fee through processing under Section 200A.

 Link to download the order –https://itat.gov.in/public/files/upload/1604492544-ITA%2009%20smc%20Bharatiya%20Shiksha%20Samiti.pdf

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