Section 234E Late Fee Cannot Be Levied for Pre-June 2015 Period: ITAT Pune Upholds Settled Legal Position
Background and Overview
The Income Tax Appellate Tribunal (ITAT), Pune Bench, recently adjudicated a consolidated batch of three appeals filed by two assessees challenging orders passed by the National Faceless Appeal Centre (NFAC), Delhi under Section 250 of the Income Tax Act, 1961. The central dispute in all three appeals revolved around the imposition of late filing fees under Section 234E of the Act on belated TDS return submissions pertaining to Assessment Years 2013–14, 2014–15, and 2015–16.
The Tribunal's ruling reaffirms what has now become a well-settled legal position across multiple judicial forums — that the Central Processing Cell (CPC) was not legally empowered to levy fees under Section 234E while processing TDS statements under Section 200A for any period falling before 1 June 2015.
Case Reference
Sancheti Onions Pvt. Ltd. Vs ITO (ITAT Pune)
Order Pronounced: 17 April 2026
ITA Nos.: 2688/PUN/2025, 2689/PUN/2025, and 401/PUN/2026
Preliminary Issue: Condonation of Delay
Before proceeding to the substantive legal question, the Tribunal dealt with a procedural matter. In the case of one of the assessees, the Registry flagged a delay of 17 days in filing the appeals before the Tribunal.
The assessee filed an affidavit placing on record the reasons that caused the delay in approaching the Tribunal within the prescribed timeframe. After carefully examining the contents of the affidavit, the Tribunal was satisfied that a reasonable cause existed that had genuinely prevented timely filing.
Adopting a justice-oriented approach and placing reliance on the judgments of Hon'ble Apex Court in the case of Collector, Land Acquisition, Anantnag & Anr. Vs. Mst. Katiji & Ors. reported in (1987) 2 SCC 107 and in the case of Inder Singh Vs. State of Madhya Pradesh judgment dated 21.03.2025 (2025 INSC 382), the Tribunal condoned the delay of 17 days and admitted all three appeals for consideration on merits.
Facts Common to All Three Appeals
The factual matrix across all three appeals was substantially identical, which is why the Tribunal chose to address them through a single consolidated order.
What Happened at the Processing Stage
- The assessees had filed their TDS returns belatedly for the relevant quarters corresponding to Assessment Years 2013–14 and 2014–15.
- These returns were taken up for processing by the Central Processing Cell (CPC) under
Section 200Aof the Income Tax Act, 1961. - During processing, the CPC levied late filing fees under
Section 234Eon account of the delay in furnishing the TDS statements.