ITAT Chennai Rejects Appeal for Late Tax Filing Beyond 8 Years

The Income Tax Appellate Tribunal (ITAT) in Chennai has adjudicated a series of appeals filed by Adithya Ferro Alloys Pvt. Limited against the Commissioner of Income Tax (Appeals)-10, Hyderabad, regarding different quarters of the Assessment Years (AY) 2013-14 & 2014-15.

The pleas were concentrated on contesting fees charged under Section 234E of the Income Tax Act, 1961, for the late filing of quarterly Tax Deducted at Source (TDS) returns. The judgment of ITAT to dismiss the petition because of the excessive delay in filing highlights the adhering importance to statutory timelines in tax compliance and litigation.

The issue is for the levy of fees under Section 234E by the TDS Centralized Processing Centre (CPC) towards the late quarterly TDS returns submission via the taxpayer. Even though the pleas were lodged with a delay of more than 3000 days, the First Appellate Authority dismissed them as of failure to condone the substantial delay.

The contention of the taxpayer rested on logistical challenges, including the collection of required documents and coordination with chartered accountants, which purportedly contributed to the delay.

The review of ITAT regarded the submissions from both parties, considering the reasons for the delay against the principles set by jurisprudence for condoning delays in legal proceedings. The tribunal referenced the Supreme Court’s remark for the matter Perumon Bhagvathy Devaswom vs. Bhargavi Amma (Dead) by LRs, which highlighted a liberal construction of “sufficient cause” for the delay, aimed at moving significant justice, provided the delay was not a result of dilatory tactics or negligence.

Even after such considerations, the ITAT concluded that the inaction of the taxpayer for 8 years shows failure and lack of bona fides in seeking the legal right to plea in the stated time duration. The petitions were dismissed at the limit for the need for condonation of delay, emphasizing the tight stance of the tribunal on complying with the procedural timelines and the diligent practice of legal rights.

The ITAT Chennai’s ruling for the case of Adithya Ferro Alloys Pvt. Limited vs. AO acts as a stark reminder of the outcomes of neglecting statutory timelines for legal resort. The decision shows the approach of the tribunal for the cases impaired by excessive delays as well as reinforces the legal maxim that justice delayed is justice denied.

Read Also: Kerala HC Clarifies No Penalties or Interest for Timely ITR e-Filing U/S 234E

For assessees and practitioners correspondingly, the matter shows the importance of timely compliance with tax liabilities and the proactive pursuit of legal remedies within the bounds of legal provisions.