The Income Tax Appellate Tribunal (ITAT), Ahmedabad bench has held that late fee under section 234E of the Income Tax Act, 1961 cannot be levied if the statement has been filed within the due date, but along with technical errors.
The assessee, G.B. Builders, had initially deposited the entire TDS in respect of the purchase of immovable property on 24-11-2014 u/s 194-IA of the Act i.e. within the due date from the purchase of the immovable property. Due to certain technical errors committed (incorrect interchanging of PAN numbers of buyer and seller in online filing of Statement 26QB), the seller could not get the credit of TDS, and later, on the advice of Revenue authorities again the buyer (the assessee) paid the TDS again amount along with interest for late deposit. The CPC, Ghaziabad, after concluding the proceedings, levied a late fee on the assessee for late filing of TDS statement.
The Tribunal bench comprising Shri Waseem Ahmed, Accountant Member and Shri Siddhartha Nautiyal, Judicial Member relied on a catena of judgments and observed that the assessee had initially deposited TDS u/s 194-IA of the Act and accordingly filed TDS statement within due date from time when the immovable property was transferred, but committed a technical default while filing the TDS Statement resulting into non-grant of TDS credit, compelling the assessee to again deposit TDS along-with interest, can the assessee be penalized for late filing of revised TDS Statement u/s 234E of the Act.
“In view of various authorities cited above, we are of the considered view that Ld. CIT(A) did not consider the facts and attendant circumstances of the case while upholding levy of penalty u/s 235E of the Act. Once the assessee has initially deposited TDS and furnished Statement in Form 26QB within time, but committed a technical error while depositing TDS resulting in non-grant of TDS to transferor, compelling it to again deposit TDS along-with interest for late deposit, then, in the interests of justice and considering the fact that no loss is caused to the Revenue, the assessee cannot be saddled with levy of late filing fee u/s 234E of the Act, taking a judicious view of the matter. In result, we hold that Ld. CIT(A) has erred in law and in facts in upholding levy of penalty u/s 234E of the Act,” the Tribunal said.
Comments