Fee for late-filing of ITR is not penalty but a charge for extra service: HC

K. Nirai Mathi Azhagan Vs Union of India (Madras High Court) Conclusion: Fees for late filing of income tax returns under section 234F  was a fixed charge not a penalty for the extra service which the Department had to provide due to the late filing of the Income Tax return. Held: Assessee had challenged section 234F on the ground that it was a penalty guised as a fee and secondly, there was no service provided for by the authorities and therefore, fee was not leviable for the simple reason that for levy of fee, there should be an element of quid pro quo. Assessee relied on a judgment of the ...