Case Law Details
Batra Exports Vs DCIT (ITAT Chandigarh)
Introduction: The recent ruling by the Income Tax Appellate Tribunal (ITAT) Chandigarh in the case of Batra Exports Vs DCIT sheds light on the jurisdiction to levy fees under section 234E of the Income Tax Act, particularly concerning the period prior to June 1, 2015.
Detailed Analysis: The crux of the matter revolves around the retrospective or prospective nature of the amendment introduced by the Finance Act, 2015. Section 234E, which pertains to late filing fees for TDS returns, was amended to empower Assessing Officers (AOs) to levy fees from June 1, 2015, onwards.
The appellant, Batra Exports, challenged the imposition of fees by the DCIT (TDS), Ludhiana, arguing that the relevant TDS returns were filed before June 1, 2015. They contended that the amended law should only apply prospectively, excluding any period preceding June 1, 2015.
The ITAT, relying on precedents and legislative interpretation, upheld the appellant’s argument. It emphasized that the amendment granting AOs the authority to levy fees under section 234E should be construed prospectively. Therefore, any TDS returns filed before June 1, 2015, should not attract late filing fees under section 234E.
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