2023 (12) TMI 551 - HC - Income Tax

Levy of late filing fee u/s 234E - not filing statements in respect of the TDS collected by the petitioner within the time prescribed in Sub Section 3 of Section 200 - petitioner has approached this Court after more than ten years impugning the said intimations - HELD THAT - This writ petition is liable to be dismissed only on the simple ground of inordinate delay and laches in filing the writ petition impugning the intimations in Exhibits P-1 to P-5 which are issued way back in 2013 and 2016. Section 234E as inserted by the Finance Act, 2012 w.e.f. 01.07.2012 is specifically provides that for failure to deliver the statement within the time prescribed under Sub-Section (3) of Section 200 or the proviso to Subsection (3) of section 206C to charge the assessee with a late fee, a sum of Rs. 200/- for every day during which the failure continues - When the impugned notices were issued, this was the law in respect of the payment of the late fee. It cannot be denied that what was to be considered when the notices were issued was the law prevailing on the said date. Subsequent amendment, unless it has retrospective effect, cannot be considered. The submission of petitioner that the amendment in Section 200A has been brought into effect w.e.f. 01.06.2015 and, therefore, the impugned notices issued way back in 2013 and 2016 are incorrect is liable to be rejected at the threshold. The law on the date when the impugned notices were issued was as provided under Section 234E which had been inserted by the Finance Act, 2012 w.e.f. 01.07.2012. This writ petition is to be dismissed on the ground of gross delay and laches as well as on merits.

Summary

Issues involved:
The issues involved in the judgment are the impugning of late fee intimations for not filing TDS statements within the prescribed time under the Income Tax Act, 1961, and the applicability of Section 234E regarding late fee charges.

Impugning Exhibits P-1 to P-5 Intimations:
The petitioner filed a writ petition challenging Exhibits P-1 to P-5 intimations for late fee payment due to not filing TDS statements within the specified time for the assessment year 2012-13. The court noted the inordinate delay of over ten years in approaching the court to challenge these intimations, leading to dismissal of the writ petition based on delay and laches.

Applicability of Section 234E - Late Fee Provision:
The judgment highlighted Section 234E inserted by the Finance Act, 2012, which imposes a late fee of Rs. 200 per day for failure to submit statements within the prescribed time under the Income Tax Act. The court emphasized that the law applicable at the time of issuing the notices was crucial, and subsequent amendments, unless retrospective, cannot be considered. The court rejected the argument that an amendment in Section 200A from 2015 could invalidate the notices issued in 2013 and 2016, as the law in force at the time of notice issuance was Section 234E from the Finance Act, 2012.

Conclusion:
The judgment concluded that the writ petition was to be dismissed due to significant delay, laches, and on the merits of the case, emphasizing the importance of considering the law in effect at the time of issuing notices rather than subsequent amendments.