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2019 (9) TMI 757 - AT - Income TaxLevying penalty / late filing fee u/s. 234E - order passed u/s 200A - assessee’s contention has been that such a levy of fees cannot be made u/s 234E prior to 1.6.2015, since there was no enabling provision in section 200A for raising a demand in respect of levy of fees u/s 234E - HELD THAT:- Section 234E was brought in statute w.e.f. 1.7.2012 which provides for fee for default in furnishing statements where a person fails to deliver or cause to be delivered a statement within the time prescribed under section 200(3) or proviso to sub section (3) of section 206C. Section 234E cannot be read in isolation, because it only prescribes the mode of calculation of the fee and it has to be read with the mechanism and the mode provided for its enforcement, that is, the provision which imposes the fee. The amendment made u/s 200A for levying such fee u/s 234E had only come into effect in 1.6.2015 and it cannot be held to operate retrospective because prior to the amendment there was no computation of fee for demand for the payment of fee u/s 234E which could have been made for TDS deducted for any assessment year prior to 1.6.2015. It is trite law that the provision which imposes fees or tax and imposes any kind of liability cannot be given retrospective effect, especially when statute itself provides its operation from prospective date. No fee can be levied u/s 234E in terms of section 200A, as admittedly the date of filing of TDS statement and date of intimation are much prior to 1.6.2015. Thus, for all the years impugned before us the fee levied u/s 234E is cancelled/deleted. - Decided in favour of assessee.
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