INCOME TAX ACT, 1961

Section 234E

Fees under section 234E - Scope of Amendment to section 200A - Late filing of TDS return -

Assessee filed this appeal challenging the late fee levied under section 234E for delay in furnishing the tax deducted at source. Assessee submitted that there was various issues that assessee had to face, thereby causing financial distress. Assessee therefore delayed in clearing the dues. It was submitted that assessee was not having sufficient income to sustain its business during the relevant period due to cash crisis. It has been submitted that section 200A was amended incorporating levy of fee under section 234E in clause ( c) read with section 200 A(1) vide Finance Act (No.2), 2015 with effective from 1-6-2015. Relevant assessment years were prior to the date of amendment in section 234E read with section 200A(1) was not applicable. Held: Levy of late fees under section 234E was exercised under section 200A for period prior to 01-06-2015. Amendment to section 200A came into effect from 01-06-2015 and has been held to be prospective in nature and therefore no computation of fee for the demand or intimation for fee under section 234 E could be made for late deposit of TDS for the assessment years prior to 01-06-2015. Late fee under section 234B cannot be levied for a period up to 01-06-2015. Interest under section 234B is not leviable for assessment year 2013-14 and 2014-15. Therefore, AO was directed to delete the addition made under section 234B in the hands of assessee.

Followed:Fatheraj Singhvi & Ors. v. UOI & Ors. (2016) 142 DTR 281 (Karn-HC) : 2016 TaxPub(DT) 4175 (Karn-HC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2013-14 to 2015-16

SUBSCRIBE FOR FULL CONTENT