INCOME TAX ACT, 1961

Section 234E

Fee under section 234E - Section introduced w.e.f. 1-6-2016 - Applicability of provision prior to 1-06-2015 -

Grievance of assessee was that CIT(A) erred in confirming levy of penalty under section 234E of Income Tax Act, 1961. Assessee contended that according to Finance Act, 2015, prior to 1-6-2015, revenue had no authority to levy fee under section 234E as it was beyond scope of section 200A. Held: In Vkare Bio Sciences Pvt. Ltd. v. DCIT, it was held that no fee was leviable to the assessee under section 234E in violation of section 200(3), because assessee had furnished statement immediately after depositing all the tax without any delay. Further, in Fatheraj Singhvi & Ors. (2016) 289 CTR 602 (Karn) : 2016 TaxPub(DT) 4175 (Karn-HC), it was held that, when no express authority was conferred by the statute under section 200A prior to 1-6-2015 for computation of any fee under section 234E nor the determination thereof, the demand or the intimation for the previous period or previous year prior to 1-6-2015 could not have been made. Thus, in light of effective date of amendment, i.e., 1-6-2015, and considering decision of High Court of Karnataka, AO was directed to delete fee levied under section 234E.

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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