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2022 (9) TMI 828 - Income Tax
Penalty of late fee u/s 234E - intimation passed u/s 200A r.w.s. 154 of the Act - as per AO assessee had failed to demonstrate sufficient and reasonable cause for delay in filing the quarterly statement of TDS of first quarter for financial year 2013-14 in Form No.24Q - HELD THAT:- It is only w.e.f. 01.06.2015 an amendment was made u/s 200A of the Act providing that fee u/s 234E could be computed at the time of processing of the return of income and intimation could be issued specifying the same payable by the dedutor as fee u/s 234E of the Act.
As in the case of Fatheraj Singhvi vs. Union of India [2016 (9) TMI 964 - KARNATAKA HIGH COURT] 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.
Thus we direct the DCIT/ACIT, CPC-TDS to delete the late fee being levied u/s 234E of the Act. Appeal of assessee allowed.