ITAT Removes INR 40K Late Fees Before Jun 2015 Tax Deduction Period

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) removed the charge of late fees of Rs 40,000 concerning the period of the tax deduction before 1/06/2015.

The two-member bench of Rahul Chaudhary (Judicial Member) and M. Balaganesh (Accountant Member) laid on the decision of Karnataka for the case of Fatehraj Singhvi Vs. Union of India where the same has ruled that the notice under Section 200A of the Income Tax Act for calculating the late fees under Section 234E of the I-T Act till the extent the same concerned to the duration of tax deduction before 1.06.2015 was responsible to be set aside.

The taxpayer is set under responsibility to deduct tax at source for the amounts filed to distinct pirates and furnish the quarterly TDS statement. The petitioner furnished the TDS statement or revised statement for the 3rd quarter of FY 2012-13 concerned to the AY 2013-14 belatedly.

The Assessing Officer during processing the TDS Statement furnished the intimation to the petitioner under Section 200A and charged a late filing fee of Rs 40,000 under Section 234E. The petitioner has chosen the petition to CIT (A), which was overlooked.

The tribunal remarked that the revision to section 200A of the Income Tax Act come into force on 01.06.2015 and has a forthcoming effect and does not apply for the duration of the respective AY before 1.6.2015.

Prior to the revision that was drawn by the Finance Act, 2015, which come into force on 01.06.2015, the council does not empower to impose the late fees under section 234E in the statement that has been functioned under section 200A.

ITAT permitting the petition has removed the levy of the late fees of Rs 40,000 for the AY 2013-14 sought under section 234E of the income tax act.