The Tax Publishers2019 TaxPub(DT) 8297 (Mum-Trib)

INCOME TAX ACT, 1961

Section 234E

Amendment to section 200A was prospective in nature and AO while processing TDS returns/statements for the period prior to 1-6-2015 was not empowered to charge late filing fees under section 234E. However, as regards the levy of interest, the same being mandatory and consequential in nature, was rightly levied by AO.

Fee under section 234E - Late filing of TDS statement - TDS return pertaining to period prior to 1-6-2015 - Applicability of amendment to section 200A

AO levied fee under section 234E on account of late filing of quarterly electronic TDS return and also levied interest on account of late payment. Assessee contended that since the amendment to section 200A by way of insertion of clause (c), which provide that the fees, if any, shall be computed in accordance with the provisions of section 234E was effective only from 1-6-2015, no fees would be payable by him for any period prior to 1-6-2015. Held: Amendment to section 200A was prospective in nature and AO while processing TDS returns/statements for the period prior to 1-6-2015 was not empowered to charge late filing fees under section 234E. Therefore, the levy of fees under section 234E for any period prior to 1-6-2015 would not be sustainable in the eyes of law. And, so far as the levy of interest was concerned, the same being mandatory and consequential in nature, was rightly levied by AO.

Followed:Medical Superintendent Rural Hospital Dodi BK and Junagade Healthcare (P.) Ltd. v. Dy. CIT & Ors. (2018) 100 Taxmnan.com 78 (Pune) : 2018 TaxPub(DT) 7097 (Pune-Trib)

REFERRED : CIT v. Vegetable Products Ltd. (1972) 88 ITR 192 (SC) : 1973 TaxPub(DT) 0421 (SC),Sree Ayyappa Educational Charitable Trust v. Dy. CIT & Ors. (2018) 301 CTR 0150 (Karn) : 2018 TaxPub(DT) 0221 (Karn-HC),Rajesh Kourani v. UOI (2017) 297 CTR 502 (Guj) : 2017 TaxPub(DT) 1953 (Guj-HC),Fatheraj Singhvi & Ors. v. UOI & Ors. (2016) 73 Taxmann.com 252 (Karn) : 2016 TaxPub(DT) 4175 (Karn-HC),Rashmikant Kundalia & Anr. v. UOI & Ors. (2015) 54 taxmann.com 200 (Bom) : (2015) 373 ITR 268 (Bom) : 2015 TaxPub(DT) 0514 (Bom-HC), Swami Vivekanand Vidyalaya v. Dy. CIT, Ghaziabad and Medical Superintendent Rural Hospital v. ACIT (ITA Nos. 2072 & 2073 (Pun) of 2017, Order, dt. 21-12-2017),Vidya Vardhani Education and Research Foundation & Ors. v. Dy. CIT (2017) 88 taxmann.com 894 (Pune - Trib.) : 2017 TaxPub(DT) 0708 (Pune-Trib), Maharashtra Cricket Association v. Dy. CIT (2016) 74 taxmann.com 6 (Pune-Trib.) : 2016 TaxPub(DT) 4322 (Pune-Trib)

FAVOUR : Partly in assessee's favour

A.Y. :

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