INCOME TAX ACT, 1961

Section 234F

Fee under section 234F - Fees for default in furnishing return of income - Assessee challenged constitutional validity on the ground of provision of no services against fee and lack of element of quid pro quo -

Assessee by way of writ petition challenges vires of section 234F on the ground that it was penalty guised as a fee and there was no service provided for by the authorities and therefore, fee was not leviable for the simple reason that for levy of fee, there should be element of quid prop quo. Held: Element of quid pro quo strict senso is not always a sine qua non of a fee. Nonetheless, fee under section 234F is charged for delay in submitting return of income beyond prescribed time, which is privilege to allow late filing of return. Object of the provision was thus intended to ensure proper and timely filing of return. The gravemen of offence is failure to submit return within a stipulated time. So far as defaulters are concerned, they from a class by themselves. Whether a person is richer comparatively than other has not relevance to this classification. Therefore, classification of all such defaulters as one class is a reasonable classification and does not offend article 14 of Constitution of India. In view of the above, writ petition filed and accordingly, same was dismissed.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :

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