S M Dental Solutions Private Limited vs. 1. INCOME TAX OFFICER (TDS)

WP(C)/12963/2023HC KeralaKLHC01028452202311 April 2023Author: HONOURABLE MR. JUSTICE T.R.RAVI4 pages
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What were the facts?

The petitioner, S M Dental Solutions Private Limited, filed a writ petition before the High Court of Kerala challenging intimations (Exts.P1 to P4) demanding late filing levy under Section 234E of the Income Tax Act, 1961. The petitioner sought to quash these demands. The respondents were the Income Tax Officer (TDS), Assistant Commissioner of Income Tax (TDS CPC), Central Board of Direct Taxes, and the Union of India. The writ petition was admitted, and notice was taken by the respondents' counsel.

What did the High Court hold?

The High Court of Kerala held that the issue of levying late filing fee under Section 234E of the Income Tax Act, 1961, was no longer res integra, meaning it had already been decided. The Court referred to its own judgment in W.P.(C.) No.37715/2018, which was upheld by a Division Bench in W.A. No.722/2019. Furthermore, a learned Single Judge had followed these judgments in a case involving a similarly situated person in W.P.(C.) No.1259/2022. Finding no reason to deviate from these established precedents, the Court allowed the writ petition. The intimations (Exts.P1 to P4) were quashed to the extent they demanded late fee under Section 234E. The ratio decidendi is that the levy of late fee under Section 234E is impermissible based on the High Court's prior rulings.

What were the issues?

1. Whether the levy of late filing fee under Section 234E of the Income Tax Act, 1961, is permissible in the context of the intimations issued to the assessee. The assessee contended that the intimations demanding late filing levy under Section 234E of the Income Tax Act, 1961, are unsustainable. The assessee relied on previous judgments of the High Court of Kerala, specifically W.P.(C.) No.37715/2018 and its confirmation by a Division Bench in W.A. No.722/2019. The assessee also pointed to a subsequent Single Judge judgment in W.P.(C.) No.1259/2022, which followed the earlier precedents in a similar case. The revenue's contentions were not explicitly recorded in the judgment.

Which sections of the Income-tax Act were involved?

Section 234E

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE T.R.RAVI TUE AY, THE 11TH DAY OF APRIL 2023 / 21ST CHAITHRA, 1945 WP(C) NO. 12963 OF 2023 PETITIONER: S M DENTAL SOLUTIONS PRIVATE LIMITED S M HOUSE., ONAPARAMBA ROAD, PUTHIYATHERU., KANNUR-670011,KERALA. (REPRESENTED BY SRI. SUNIL MATHEW, MANAGING DIRECTOR) BY ADVS. P.J.ANILKUMAR (A-1768) K.N.SREEKUMARAN N.SANTHOSHKUMAR RESPONDENTS: 1 INCOME TAX OFFICER (TDS) AAYKAR BHAVAN, MELE CHOVVA, KANNOTHUMCHAL., KANNUR- 670006. 2 ASSISTANT COMMISSIONER OF INCOME TAX TDS CPC, AAYKAR BHAVAN, SECTOR-3, VAISHALI, GAZIABAD, UTTARPRADESH-201010. 3 CENTRAL BOARD OF DIRECT TAXES NORTH BLOCK NEW DELHI-110002. REPRESENTED BY ITS CHAIRMAN. 4 THE UNION OF INDIA MINISTRY OF FINANCE, DIRECT TAXES DEPARTMENT, NEW DELHI-110001. REPRESENTED BY ITS SECRETARY. BY ADV CHRISTOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11.04.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C) NO. 12963 OF 2023 2 T.R. RAVI, J. -------------------------------------------- W.P.(C) No.12963 of 2023 -------------------------------------------- Dated this the 11th day of April, 2023 JUDGMENT Admit. Learned Dep

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