2025 (2) TMI 821 - AT - Income Tax

Late fee levied u/s. 234E - TDS statements filled belatedly - as contented in the absence of enabling provisions u/s. 200A or the Act late fee cannot be levied placing reliance on the decision of Shri Fatheraj Singhvi vs. Union of India 2016 (9) TMI 964 - KARNATAKA HIGH COURT - HELD THAT - Admittedly the quarterly statement of TDS was filed belatedly. No doubt the late fee was levied for the period prior to the amendment to section 200A of the Act which came into effect on 01.06.2015 enabling levy of late fee by the CPC. No doubt it is true that the in the case of Shri Fatheraj Singhvi (supra) took a view that in the absence of charging provision late fee u/s. 234E of the Act cannot be levied for the period prior to 01.06.2015. However in the case Sree Narayana Guru Smaraka Sangam Upper Primary School 2017 (1) TMI 1105 - KERALA HIGH COURT and subsequent decision in the case of Alampally Pressure Testing C. (P) Ltd. 2023 (12) TMI 551 - KERALA HIGH COURT took a view that late fee as envisaged u/s. 234E of the Act can be levied even for the period prior to 2015 by holding that the law on the date when the impugned notices were issued provided for levy of late fee u/s. 234E which had been inserted by Finance Act 2012 w.e.f. 01.07.2012. We confirm the levy of late u/s. 234E of the Act - Decided in favour of revenue.

Summary

The case involves an appeal against the levy of late fees under section 234E of the Income Tax Act, 1961 for the Assessment Year 2013-14. The appellant argued that late fees cannot be imposed in the absence of specific provisions. Despite citing a decision by the Karnataka High Court, the Appellate Tribunal upheld the levy of late fees based on rulings by the Rajasthan and Kerala High Courts. As the jurisdictional High Court's decision is binding, the Tribunal confirmed the late fee imposition. The appeal was dismissed, and the decision was pronounced on February 19, 2025.