Tuesday, October 4, 2016

Fee for delay in filing TDS return not permissible in an intimation with retro-effect: Pune ITAT

Facts:
a) The issue raised in this appeal related to charging of fees payable under section 234E prior to amendment to section 200A(1)(c) [vide Finance Act, 2015 w.e.f. 01.06.2015], while processing the TDS returns.

b) The assessee also pointed that the Legislature had inserted clause (c) in section 200A(1) of the Act specifically w.e.f. 01.06.2015 and there was nothing to suggest that the said amendment was clarificatory or retrospective in nature. Hence, in respect of TDS statements filed for the period prior to 01.06.2015, late fees under section 234E could not be levied in the intimation issued under section 200A.

The ITAT held in favour of assessee as under:

1) Where the TDS return could not be filed before the prescribed authority within stipulated time, the assessee was liable to levy of fees under section 234E.


2) The power to charge/collect fees as per provisions of section 234E was vested in the prescribed authority only on substitution of earlier clause (c) of section 200A by the Finance Act, 2015 w.e.f. 1-6-2015.

3) Once any provision of the Act has been made applicable from a respective date, then the requirement of the statute is to apply the said provisions from the said date. Thus, in respect of TDS statements filed for the period prior to 1-6-2015, late fees charged under section 234E could not be levied in the intimation issued under section 200A. - [2016] 73 taxmann.com 380 (Pune - Trib.)
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