Jiji Varghese Vs ITO (Kerala High Court)
Kerala High Court has quashed demands for late fees levied under of the Income Tax Act, 1961, for the period between 2012-13 and 2014-15, ruling that the provision for levying such fees through intimation became effective only from June 1, 2015. The judgment came in the case of Jiji Varghese Vs ITO, where the petitioner challenged intimations demanding late fees for delayed filing of TDS remittance statements.
The petitioner, an assessee, had deducted and remitted TDS to the Income Tax Department but faced delays in filing the corresponding statements of returns. Upon processing, the second respondent (Income Tax Department) levied a late fee of Rs. 200 per day for the failure, as stipulated in Section 234E. This section, introduced by the Finance Act, 2012, came into effect on July 1, 2012.
However, the petitioner contended that while Section 234E itself was introduced in 2012, the authority for the Assessing Officer to compute and demand such fees during processing of returns, specifically through clause (c) of Section 200A(1), was incorporated only with effect from June 1, 2015. Prior to this amendment, the mechanism for automatic levy of such fees through intimation was absent. Therefore, the petitioner argued that no liability for late fees could be imposed for delays occurring before June 1, 2015.
