INCOME TAX ACT, 1961

Section 234E

Fee under section 234E - Leviability - Delay in filing of TDS returns - Delay in filing TDS return continued beyond 1-6-2015

Assessee filed TDS return in Form No. 26Q and as the same was processed, AO issued an intimation under section 200A imposing penalty under section 234E for delay in filing the TDS return. Assessee contended that prior to amendment in section 200A with effect from 1-6-2015, AO had no authority to levy fee for the period in respect of return pertaining to the period prior to 1-6-2015. Held: AO acquired the jurisdiction to levy the fees as on 1-6-2015 and therefore, any return filed and processed after 1-6-2015 would fall within his jurisdiction where on occurrence of any default on part of the assessee, he could levy fee so mandated under section 234E. Therefore, irrespective of the period to which the quarterly return pertained, where the return was filed after 1-6-2015, AO could levy fee under section 234E. Since delay in filing of TDS returns continued beyond 1-6-2015, AO was well within his jurisdiction to levy fees under section 234E for the period starting 1-6-2015 to the date of actual filing of the TDS return. Hence, the levy of fees under section 234E was upheld for the period 1-6-2015 to the date of actual filing of the TDS return and the balance fee so levied was deleted.

REFERRED : Sri Fatheraj Singhvi & Ors. v. UOI & Ors. 2016 TaxPub(DT) 4175 (Karn-HC) and M/s. Dundlod Shikshan Sansthan & Anr. v. UOI & Ors. [D.B. Civil Writ Petition No. 8672/2014, dt. 28-7-2015]

FAVOUR : Partly in favour of assessee.

A.Y. :

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