2023 (9) TMI 1342 - HC - Income Tax

Late fee as payable in terms of u/s 234E - HELD THAT - The issue is squarely covered by the decision of the Karnataka High Court in Sri.Fatheraj Singhvi and others Vs. Union of India and others 2016 (9) TMI 964 - KARNATAKA HIGH COURT and in Rajesh Kourani Vs. Union of India and others 2017 (7) TMI 458 - GUJARAT HIGH COURT and in M/s.Viswabharathi Textiles Private Limited 2011 (10) TMI 620 - ITAT CHENNAI The issue as to whether the petitioner is liable to pay late fee u/s 234E of the IT Act can be decided by the respondents independently by disposing of the petitioner's various representations last of which is dated 07.02.2023. We direct the respondents to dispose the petitioner's aforesaid representation within a period of six weeks from the date of receipt of a copy of this order.

Summary

Issues involved:
The petitioner challenged a Demand Notice for late filing of TDS statement under the Income Tax Act. The dispute pertains to Assessment Years 2012-2013 and 2013-2014. The issue is whether the petitioner is liable to pay late fee under Section 234E of the IT Act.

Judgment Details:

Late Filing of TDS Statement:
The petitioner contested the Demand Notice for late filing of the TDS statement, citing that the machinery was incorporated under Section 200A(1)(c) of the IT Act in 2015, while the dispute relates to earlier assessment years. The respondents argued that late fee is payable under Section 234E of the IT Act.

Legal Precedents:
The petitioner relied on decisions from the Karnataka High Court and the Gujarat High Court, along with an order from the Income Tax Appellate Tribunal in support of their case.

Court's Direction:
After hearing both parties, the court noted the petitioner's repeated representations asserting no late fee liability. The court directed the respondents to decide on the petitioner's representations, including the latest one dated 07.02.2023, within six weeks. Until then, all recovery proceedings are to be put on hold.

Conclusion:
The Writ Petition was disposed of with the above directions, and no costs were awarded. The connected Writ Miscellaneous Petitions were closed as a result of this judgment.