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2022 (12) TMI 791 - AT - Income TaxLevying the late filing fee u/s. 234E - delay in filing the TDS statement - genuine hardship to the assessee - reasonable cause on the part of the appellant Educational Society which resulted in delay in filing the TDS statement - HELD THAT:- Assessee had deducted tax at source u/s. 195 of the Act but belatedly filed the returns on 27/11/2015 under the bonafide intention that the amended provisions will not attract for levy of late fee u/s. 234E of the Act since the due date for filing the returns for Q1 of FY 2014-15 is 30/06/2014. AYs’ 2016-17 & 2017-18 - AO vide order passed U/s. 200A, imposed late fees U/s. 234E of the Act. In these cases since the assessee has filed its TDS returns on 12/02/2018 which is after the date of insertion of specific provision for levy of late fee U/s. 234E ie., 01/06/2015. Therefore, the action taken by the Ld. AO in levying the late fee for default in furnishing the TDS statement beyond the stipulated time is in accordance with law. Therefore, we have no hesitation to come to a conclusion that the orders of the Ld. Revenue Authorities invoking the provisions of section 234E in order to levy late fee for default in furnishing the TDS statement beyond the stipulated time is in accordance with law and accordingly the grounds raised by the assessee are hereby dismissed. Since the period under consideration is the 1st Quarter of FY 2014-15 ie., prior to the amendment to section 200A(1) of the Act wherein clause (c) was inserted w.e.f 01/06/2015 and the assessee had already deposited the tax at source prior to the amendment to section 200A(1), the levy of late fee u/s. 234E for default in furnishing the statement beyond the stipulated time is not sustainable in law. Respectfully following the ratio laid down in the judgment in the case of Fatheraj Singhvi [2016 (9) TMI 964 - KARNATAKA HIGH COURT], in the case of United Metals [2021 (12) TMI 1349 - KERALA HIGH COURT] and the levying of late fee u/s 234E for the period prior to 1/6/2015 is not sustainable in law. Thus, in the instant case since the period of default was before the said date ie., 01/06/2015, there is no merit in charging late filing fee u/s. 234E of the Act. Accordingly the Ld. AO is directed to delete the fee levied U/s. 234E of the Act in the order passed U/s. 154 r.w.s 200A of the Act Thus, the grounds raised by the assessee are allowed.
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