Case Law Details
Keshav Industries Pvt. Ltd. Vs ITO-TDS (ITAT Indore)
Amendment dated 01.06.2015 in Section 200A of the Income Tax Act, 1961 is prospective in nature and cannot be applied retrospectively to previous TDS instances
The ITAT Indore in Rajendra Prasad Tiwari (through Aakash Tiwari) Vs. Income Tax Department, had on 14/07/2020 brought a landmark finding on retrospective operation of amendments in Section 200A.
It held that the Department was not justified in retrospectively levying the late fees u/s 234E of the Act while processing the statement of tax deducted at source u/s 200A of the Act on the basis of amendment dated 01.06.2015, in respect of matters falling before the date of amendment. And clearly settled the position that the amendment brought to the Section 200 A of the Act is prospective in nature and cannot be applied to previous TDS instances.
Para 11 of the judgment is as under:
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
Ratio decidendi- “fee u/s 234E of the Act was levied in the statements processed u/s 200A of the Act before 01.06.2015 i.e. before the amendment brought into effect from 01.06.2015 in section 200A of the Act thereby enabling the revenue authorities to raise demand in respect of levy of fees u/s 234E of the Act, Ld. CIT(A) erred in confirming the levy of late fees u/s 234E of the Act by the assessing officer.”