Case Law Details
Sri Channabasaveshwara Swamy Rural Education Society Vs ITO (ITAT Bangalore)
ITAT Bangalore held that no computation of fee u/s. 234E of the Act for delayed filing of return of TDS while processing a return of TDS u/s. 234E of the Act could have been made for tax deducted at source for the assessment years prior to 1.6.2015.
Facts- The assessee is a Trust and is running an educational Institute. An order has been passed U/s 200A of the act, while processing the TDS returns, by levying fees U/s 234E of the Act and raising a demand.
Vide the present appeal, the only issue raised by the assessee is in respect of levy of interest u/s. 234E for belated filing of TDS returns.
Conclusion- Hon’ble Karnataka High Court in the case of Fatehraj Singhvi v. UOI has held that amendment made u/s. 200A of the Income Tax Act providing that fee u/s. 234E of the Act could be computed at the time of processing of return and issue of intimation has come into effect only from 1.6.2015 and had only prospective effect and therefore, no computation of fee u/s. 234E of the Act for delayed filing of return of TDS while processing a return of TDS u/s. 234E of the Act could have been made for tax deducted at source for the assessment years prior to 1.6.2015. Held that the interest u/s. 234E cannot be sustained.
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