Case Law Details
Sutheepan Sowmini Vs ITO (Kerala High Court)
In the case of Sutheepan Sowmini vs. ITO, the Kerala High Court addressed the imposition of late fees under Section 234E of the Income Tax Act, 1961, related to the filing of delayed TDS returns for the assessment year 2013-2014. This article provides a detailed analysis of the case, focusing on the jurisdictional grounds and the court’s decision to quash the late fee notices.
The Challenge: The petitioner contested Ext.P1 to Ext.P6, which pertained to the imposition of fees under Section 234E of the Income Tax Act. These fees were levied for filing TDS returns late, specifically for the assessment year 2013-2014. The primary contention in this writ petition was that the demand notices exceeded the jurisdictional boundaries.
Jurisdictional Limits: The central argument put forth by the petitioner was that late fees could not be imposed for failing to file previous returns for the period before June 1, 2015. This restriction was crucial in determining the legality of the demand notices. The petitioner’s counsel referenced a relevant judgment by the Kerala High Court for support.
Precedent and Legal Grounds: The petitioner’s legal counsel referred to a judgment issued by the Kerala High Court in the case of M/S. OLARI LITTLE FLOWER KURIES PVT. LTD. vs. UNION OF INDIA, W.P.(C) No. 11175 of 2014, dated October 22, 2021. Paragraph 9.1 of this judgment was particularly relevant, as it addressed the issue of late fee demands for filing belated statements before June 1, 2015.
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