Brief of the case:
In this case the constitutional validity of section 234E of the Act was challenged. Hon’ble HC has followed the decision of Hon’ble Bombay HC in the matter of Rashmikant Kundalia and ors. V/s Union of India & ors. (2015) 229 Taxman 596 (Bom) where the Hon’ble court has upheld the validity of Section 234E of the Income Tax Act, 1961, on the ground that the levy of fee of Rs.200/- per day on the late filing of the TDS returns, which is a duty cast on the person deducting TDS under section 200 of the Income Tax Act, is a compensatory fee, which is not in the nature of penalty. After relying the said decision the court has held section 234E constitutionally valid.
Facts of the case:
- Appellant/Assessee was found defaulted in filing of TDS return in time and hence the AO held that assessee is liable to pay fees u/s 234E for delay in filing TDS return. AO raised a demand accordingly.
- The fee was levied under section 200 for late filing of the returns, prior to the amendments made by the Finance Act, 2015 with effect from 1.6.2015 in Sections 200A, 246A and 272A providing for computation and appeal.
- Aggrieved from the demand raised assessee preferred the present writ petition.
Contention of the revenue/respondents:
The Hon’ble Bombay HC in the case of Rashmikant Kundalia and ors. V/s Union of India & ors. (Supra) has held the impugned section as constitutional Valid.
Contention of the assessee/appellant:
