Late Fee for Delayed filing of TDS u/s 234E of Income Tax Act Not Leviable for Year 2012-13: Kerala HC [Read Order]

In a recent ruling, the Kerala High Court ruled that the late fee for delayed filing of TDS under section 234 of the Income Tax Act, 1961 cannot be levied for the year 2012-13 as the amended provision is prospective in nature with effect from 01.06.2015.

The petitioner, M/s Alapatt Fashion Jewellery approached the High Court challenging the levy of fees under Section 234E of the Income Tax Act, for the financial year 2012-13 on the ground that the provisions of Section 234E of the Act can operate only prospectively, i.e, with effect from 01.06.2015 and not in respect of any earlier period.

The petitioner further relied on decision in M/s.Sarala Memorial Hospital v. Union of India and Another an identical question arose for consideration. The income tax Department, on the other hand, contended that in respect of the periods prior to 01.06.2015, the issue stands covered by the judgment of this Court in W.P.(C.) No.1259 of 2022.

The Court in the above-said case, held that “After considering the statutory provisions of section 234E and section 200A of the Act and the implications of the amendment brought in to the Act, it was held that the amendment would take effect only from 1st June, 2015 and is thus prospective in nature. The aforesaid judgment has become final and is binding upon the authorities. Thus the jurisdiction to levy late fee under section 234E arises only from 01-06.2015 and not earlier.”

Relying on the above judgment, Justice Gopinath P observed that “Having regard to the aforesaid submissions and being in full agreement with the view taken by this Court in W.P. (C.) No.1259 of 2022, this writ petition is allowed. Exts.P1, P2 and P3 intimations are quashed to the extent, they demand fee under Section 234E of the Income Tax Act.”

To Read the full text of the Order CLICK HERE

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