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2022 (11) TMI 305 - AT - Income TaxLevy of late fees u/s 234E - belated submission of tax deducted at source statement - 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. The Hon’ble Karnataka High Court 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. The decision rendered by the Hon’ble Bombay High Court in the case of Rashmikant Kundalia and Others [2015 (2) TMI 412 - BOMBAY HIGH COURT] does not come to the rescue of the Revenue, inasmuch as, the Hon’ble High Court had only upheld the constitutional validity of the provisions of section 234E of the Act. The Hon’ble High Court had not gone into the issue of retrospective operation of provisions of section 234E of the Act. In the circumstances, we direct the DCIT, TDS (CPC), Ghaziabad to delete the late fee being levied u/s 234E of the Act. Assessee appeal allowed.
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