Case Law Details
Olari Little Flower Kuries Pvt. Ltd. Vs Union of India (Kerala High Court)
The Kerala High Court recently delivered a significant judgment in the case of Olari Little Flower Kuries Pvt. Ltd. Vs Union of India. The judgment addresses the issue of late fees under Section 234E of the Income Tax Act for TDS returns filed before June 1, 2015. This article provides a detailed analysis of the case, the arguments presented, and the court’s ruling.
Detailed Analysis:
Background: The case revolves around the applicability and constitutionality of Section 234E of the Income Tax Act, which pertains to late fees for delayed filing of TDS (Tax Deducted at Source) returns. The petitioners, including M/s. Sarala Memorial Hospital and Olari Little Flower Kuries Pvt. Ltd., challenged intimations (Exts.P1 to P6) issued by the Income Tax Department, demanding late fees for the Financial Years 2012-13 and 2013-14.
The Petitioners’ Arguments: The writ petitioners contended that the introduction of clause (c) to Section 200A(1) of the Act on June 1, 2015, had a retrospective effect. They relied on Circular No. 19 of 2015 issued by the Central Board of Direct Taxes (CBDT), which clarified the effective date of clause (c) as June 1, 2015. Therefore, they argued that late fees could not be imposed for the period before this date.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
