Case Law Details
Envision Landmarks LLP Vs TDS (ITAT Pune)
ITAT Pune held that late fees u/s 234E of the Income Tax Act can be levied only prospectively with effect from 01.06.2015.
Facts- The Assistant Commissioner of Income Tax, (CPC-TDS), Ghaziabad issued an intimation u/s 200A r.w.s. 154 of the Income Tax Act, 1961 for A.Y. 2014-15 levying a late fee under the provisions of section 234E.
Being aggrieved by the above intimation, an appeal was filed before the NFAC. The NFAC dismissed the appeal on the ground that the assessee had failed to demonstrate sufficient and reasonable cause for delay in filing the quarterly statement of TDS of first, second, third and fourth quarters for financial year 2013-14 in Form No.26Q. Being aggrieved by the above decision of the NFAC, the appellant has preferred the present appeal.
Conclusion- Hon’ble Karnataka High Court in the case of Fatheraj Singhvi vs. Union of India, 73 taxmann.com 252 held that the provisions of section 234E of the Act are substantive in nature and the mechanism for computing the late fee was provided by the Parliament only w.e.f. 01.06.2015. Therefore, late fees u/s 234E of the Act can be levied only prospectively w.e.f. 01.06.2015.
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