In ITA No.127/Ahd/2022- ITAT - Non-filing of Form 27Q by specified deadline not sole criterion for levying fees under Section 234E of Income Tax Act: ITAT (Ahmedabad)
Members Annapurna Gupta (Accountant) & Suchitra Kamble (Judicial) [17-05-2023]

Read Order: Kanta Govind Singh, v. Asstt. Commissioner of Income Tax

LE Correspondent

Mumbai, May 22, 2023: The Ahmedabad bench of the Income Tax Appellate Tribunal has ruled that the mere fact that the assessee did not file Form 27Q by the specified deadline should not be the sole criterion for levying fees under section 234E of the Income Tax Act.

In the matter at hand, the assessee, due to old age and health issues, forgot to file the TDS return within the prescribed deadline. It was later discovered in January, 2021 that the return for the quarter ending June 2019 had not been filed. The assessee promptly filed the return to comply with the income tax procedures. However, a late filing fee of Rs. 1,05,400/- was levied by the Assessing Officer (AO) under section 234E of the Income Tax Act. The department contended that section 234E of the Income Tax Act mandates the filing of TDS statements and, therefore, the Commissioner of Income Tax (Appeals) (CIT(A)) was correct in confirming the levy of fee under section 234E.

The Tribunal noted that the assessee, being a senior citizen, promptly deposited the TDS amount upon receiving the sale consideration. It was also noted that there was no lapse on the part of the assessee in depositing the TDS amount to the Government of India's Treasury. Although the assessee could not file Form 27Q within the specified time frame due to unforeseen circumstances, the intention of the assessee was clear as he eventually filed it in January 2021.

Considering the circumstances, the Tribunal held that it would be appropriate to delete the levy of fee.