2022 (2) TMI 233 - HC - Income Tax

Late filing fee under section 234E - Fee for default in furnishing statements - HELD THAT - Though section 234E of the Act was introduced by the Finance Act, 2012 with effect from 1st July, 2012, since petitioner is being demanded by Ext.P1 late fee for not filing the statement of tax deduction at source, it is necessary to refer to section 200A of the Act. Section 200A(1) incorporated clause (c) to clause (f) with effect from 01.06.2015. Sub-clause to section 200A (1) refers to the fee if any to be computed in accordance with the provisions of section 200A(1)(e). Petitioner that till 01.06.2015 petitioner cannot be mulcted with any liability to pay late fee for non filing of any statement of tax deduction at source M/s.Sarala Memorial Hospital v. Union of India and Another 2018 (12) TMI 1818 - KERALA HIGH COURT wherein an identical question arose for consideration. After considering the statutory provisions and the implications of the amendment brought in to the Act, it was held that the amendment would take effect only with effect from 1st June, 2015 and is thus prospective in nature. It is submitted that the aforesaid judgment has become final and is binding upon the authorities. The demand in Ext.P1 to Ext.P3 intimations for the period from 2012-13 to 2014-15 is bereft of authority and cannot be legally sustainable.

Summary

Issues:
Late filing fee under section 234E of the Income Tax Act, 1961 for the periods from 2012-13 to 2014-15.

Analysis:
The petitioner was called upon to pay the late filing fee under section 234E of the Income Tax Act, 1961. Section 234E imposes a fee for default in furnishing statements related to tax deductions. The petitioner was demanded late fees for the periods from 2012-13 to 2014-15 based on this provision. However, the petitioner argued that since section 234E was introduced by the Finance Act, 2012, and the demand was made for the period before the amendment to section 200A in 2015, they should not be held liable for the late fee.

The court considered the provisions of section 200A of the Act, which was amended with effect from 01.06.2015. The petitioner contended that until 01.06.2015, they could not be held liable to pay late fees for not filing the statement of tax deduction at source. The petitioner relied on a previous decision where it was held that the amendment to section 200A would be prospective in nature and effective only from 1st June, 2015. The court noted that this judgment was final and binding on the authorities.

Based on the arguments presented and the previous decision cited, the court held that the demand for late fees under section 234E for the assessment years from 2012-13 to 2014-15 was without authority and legally unsustainable. Consequently, the court quashed the intimations demanding late fees for the specified period. The writ petition was allowed in favor of the petitioner.