Fee under section 234E for delayed filing of quarterly TDS return, deleted
In a recent judgement, the ITAT (Income Tax Appellate Tribunal) have upheld the assessee’s grievance and deletes fee under section 234E for delayed filing of quarterly TDS return.
The judgement was in the case of Sibia Healthcare Private Limited against DCIT(TDS-CPC).
ITAT(Income Tax Appellate Tribunal) said there was no enabling provision under section 200A, prior to June 1, 2015 for raising demand in respect of levy of fee under section 234E.
ITAT(Income Tax Appellate Tribunal) also said adjustment for levy of fee under section 234E was beyond the scope of permissible adjustment contemplated under section 200A, before the amendment by Finance Act 2015.
The clauses on fee under section 234E were included with effect from June 1, 2015, in sub section (1) of section 200A of the Income Tax Act.
Thus in absence of enabling provision under section 200A, no such levy could be affected prior to the inclusion of the clause.
ITAT holds that intimation was raised in respect of TDS Statement filed by Assessee in February 2014 and such levy could have been made on or before March 31, 2015 and since the time has elapsed the defect is not curable.