Late Fee Under Section 234E Quashed Due to Pre-2015 Period

Punchsheel Nursing Home Vs ITO (ITAT Delhi)

No 234E Fee Before 1-6-2015: Delhi ITAT Quashes Late-Fee Demands on Pre-Amendment TDS Returns

Delhi ITAT, Delhi Bench ‘E’, in Punchsheel Nursing Home Vs ITO (ITA Nos.3320 & 3321/Del/2025; AYs 2013-14 & 2015-16; order dated 19-12-2025), held that late fee u/s 234E cannot be levied for TDS returns filed prior to 01-06-2015 while processing statements u/s 200A. The Tribunal observed that the enabling provision empowering levy of fee during TDS processing—section 200A(1)(c)—was inserted only w.e.f. 01-06-2015; hence, any levy of fee u/s 234E for earlier periods is without authority of law.

Relying on consistent coordinate-bench decisions and High Court rulings (including True Blue Voice India (P.) Ltd.), the Tribunal set aside the NFAC orders that had sustained ₹11,200 as late fee u/s 234E, along with consequential interest u/s 201(1A) and u/s 220(2). It reiterated that statutory provisions creating a charge cannot be applied retrospectively in the absence of clear legislative mandate. Accordingly, both appeals were allowed, and the impugned demands were quashed in full.

FULL TEXT OF THE ORDER OF ITAT DELHI

These two appeals are filed by the assessee against NFAC, Delhi dated 03.03.2025 for the A.Y’s 2015-16 and 2013-14 respectively in sustaining the order of the Assessing Officer in levying fee u/s.234E of the Act.