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2023 (10) TMI 1141 - HC - Income TaxLevy of fee u/s 234E - TDS statement was filed under Section 200A - whether the late fee can be imposed u/s 234E while processing the statement of TDS under Section 200A of the Act for the subject assessment years? - HELD THAT - Since, there was no provision for imposing the late fee under Section 234E of the Act while filing and processing the TDS returns under Section 200A of the Act, clause (c) to Sub-Section (1) to Section 200A was introduced with effect from 01.07.2012. The respondent had had imposed the late fee only under Section 234E of the Act for the assessment years 2012-2013, 2013-2014, 2014-2015. However, Section 200A(1)(c) of the Act was not introduced during the said assessment years. In the absence of any provisions under Section 200A of the Act, when they have processed the application for TDS under Section 200A, no late fee can be imposed under Section 234E. Hence, in such view of the matter, this Court feels that the impugned orders are liable to be set aside - Decided in favour of assessee.
Issues:
The judgment involves a challenge to impugned orders dated 24.09.2021 regarding the levy of fee under Section 234E of the Income Tax Act for the period up to 01.06.2015. Details of Judgment: Issue 1: Late Fee Imposition under Section 234E The petitioner argued that late fee under Section 234E cannot be imposed for the assessment years 2012-2013 to 2014-2015 when processing TDS under Section 200A of the Act. The petitioner contended that the late fee was imposed without considering relevant aspects and submissions. Issue 2: Legal Provisions and Arguments The respondents argued that late fee under Section 234E could be imposed even before the introduction of Section 200A(1)(c) of the Act. They referred to the retrospective effect of the Finance Bill, 2015, and cited legal precedents upholding the provisions of Section 234E. Issue 3: Court's Analysis and Decision The Court examined the provisions of Section 234E and Section 200A of the Act. It noted that Section 200A(1)(c) was introduced to enable the computation of late fee under Section 234E at the time of processing TDS statements. The Court found that prior to the introduction of Section 200A(1)(c), the Authorities were not empowered to impose late fees while processing TDS under Section 200A. Issue 4: Court's Ruling The Court rejected the respondent's argument of applying Section 200A(1)(c) retrospectively and emphasized that late fee could not be imposed under Section 234E when processing TDS under Section 200A. It clarified that only the Commissioner of Income Tax could pass a revised order for waiver of late fees under Section 264C of the Act. Conclusion The Court set aside the impugned orders dated 24.09.2021 and directed the Department to consider the petitioner's reply as a revision application. The Department was instructed to pass appropriate orders within eight weeks from the date of the Court's order. The writ petitions were disposed of, and the connected miscellaneous petitions were closed.
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