Case Law Details
St. Alphonsa Timbers & Traders Pvt Ltd Vs ITO (ITAT Cochin)
ITAT Cochin held that prior to 1st June 2015, there was no provision enabling demand in respect of levy of fees u/s 234E for late filing of TDS/ TCS statement. Accordingly, imposition of late fees prior to 1st June 2015 is bad-in-law.
Facts- The issue involved here is that the assessee failed to furnish the TDS/ TCS return on or before the respective due date. Accordingly, AO passed an order u/s 154 r.w.s. 200A of the Income Tax Act proposing imposition of penalty under section 234E.
IT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that only after 1st June, 2015 while processing of a TDS/TCS statement and issuance of intimation u/s 200A/206CB of the Act in respect thereof, an adjustment could also be made in respect of ‘fee’, if any shall be computed in accordance with the provisions of section 234E of the Act. Prior to 1st June, 2015, there was no enabling provision therein for raising a demand in respect of levy of fees u/s 234E of the Act. Therefore, no such levy could have been effected.
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