Lingeswara Creations Vs Principal Chief Commissioner of Income Tax (Madras High Court)
Summary: The Madras High Court considered a writ petition filed by Lingeswara Creations challenging Demand Intimation Letters dated 27.03.2019 issued under the TDS processing mechanism. The petitioner sought quashing of the demand intimations relating to assessment years 2012-13 and 2013-14, contending that late fee under Section 234E of the Income-tax Act, 1961 could not be imposed while processing TDS statements under Section 200A for those assessment years.
The Court recorded that both sides submitted that its earlier judgment in M/s. True Blue Voice India Private Ltd. and another Vs. the Chief Commissioner of Income Tax – TDS, Chennai and others, reported as 2023 (10) TMI 1141, squarely applied to the facts of the present case. The Court reproduced the relevant portion of that judgment.
In True Blue Voice India, the Court had considered whether late fee under Section 234E could be imposed while processing a TDS statement under Section 200A for the relevant assessment years. The judgment distinguished the validity of Section 234E itself from the question whether such fee could be imposed through processing under Section 200A. It recorded that Section 234E was introduced with effect from 01.07.2012, whereas Section 200A(1)(c), providing that the fee, if any, shall be computed in accordance with Section 234E, was introduced with effect from 01.06.2015.
