ITAT rules on automatic late fee levied on delayed filing of TDS statement

ITAT rules on automatic late fee levied on delayed filing of TDS statement

Aggrieved by the orders of the Income Tax authorities, the assessee had approached the tribunal

The Pune Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that if a delay in filing of Tax Deducted at Source (TDS) statement is proved, a late fee under the Income Tax Act, 1961, is levied.

The Assistant Commissioner of Income Tax (ACIT), Ghaziabad issued an intimation to the assessee under the IT Act for the Assessment Year 2016-17 levying a late fee of Rs.77,220. He stated that the appellant, Gangamai College of Engineering had failed to file the statement of TDS of the second quarter for the Financial Year 2015-16.

Accordingly, under the IT Act, in February 2018, the ACIT levied a late fee penalty of Rs.77,220 on the assessee.

Aggrieved by the intimation, the assessee filed an appeal before the Commissioner of Income Tax (Appeals). The CIT(A) dismissed the appeal on the ground that the assessee had failed to demonstrate sufficient and reasonable cause for the delay in filing the quarterly statement of TDS.

The assessee then appealed before ITAT.

The ITAT bench comprising SS Viswanethra Ravi (Judicial Member) and Inturi Rama Rao (Accountant Member) held, "It is an undisputed fact that there is a delay in filing the submission of the Quarterly Statement of TDS. When there is a delay, a late fee under the IT Act is automatic. There is no discretion not to levy the late fees. It is not the case of the appellant that there is a denial of liability for a late fee."