CALICUT CEMENT CENTRE, vs. INCOME TAX OFFICER (TDS),

WP(C)/12334/2023HC KeralaKLHC01027265202305 April 2023Author: HONOURABLE MR. JUSTICE T.R.RAVI4 pages
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What were the facts?

The petitioner, Calicut Cement Centre, filed a writ petition before the High Court of Kerala challenging intimations (Exts. P1, P2, and P3) that demanded late filing levy under Section 234E of the Income Tax Act, 1961. The respondents include various income tax authorities, including the Income Tax Officer (TDS), Assistant Commissioner of Income Tax, Commissioner of Income Tax (Appeals), Central Board of Direct Taxes, and the Union of India. The petitioner sought to quash these intimations to the extent they imposed the late filing levy. The matter was heard on April 5, 2023.

What did the High Court hold?

The High Court held that the issue of levying late filing fees under Section 234E of the Income Tax Act, 1961, is no longer res integra. The Court referred to its own previous 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 precedents in W.P.(C.) No.1078/2022. Finding no reason to deviate from the established legal position, the Court allowed the writ petition. The intimations (Exts. P1, P2, and P3) were quashed to the extent they demanded the late fee under Section 234E. The ratio decidendi is that the levy of late fee under Section 234E is not permissible based on the High Court's prior pronouncements.

What were the issues?

1. Whether the levy of late filing fee under Section 234E of the Income Tax Act, 1961, is permissible in light of previous High Court judgments. The assessee (petitioner) contended that the demand for late filing levy under Section 234E is not legally sustainable. The assessee relied on previous judgments of the High Court of Kerala, specifically W.P.(C.) No.37715/2018, which was confirmed by a Division Bench in W.A. No.722/2019, and a subsequent Single Judge judgment in W.P.(C.) No.1078/2022. The revenue did not record any specific arguments 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 WEDNE AY, THE 5TH DAY OF APRIL 2023 / 15TH CHAITHRA, 1945 WP(C) NO. 12334 OF 2023 PETITIONER: 1 CALICUT CEMENT CENTRE, AGED 52 YEARS 19/2005 J,1ST FLOOR,NALONKADY ARCADE , PUSHPA JN.KALLAI, CALICUT-673003. (REPRESENTED BY SRI. AFSAL.V, MANAGING PARTNER). BY ADVS. P.J.ANILKUMAR (A-1768) K.N.SREEKUMARAN N.SANTHOSHKUMAR RESPONDENTS: 1 INCOME TAX OFFICER (TDS), AAYKAR BHAVAN, MANANCHIRA, KOZHIKODE- 673001. 2 ASSISTANT COMMISSIONER OF INCOME TAX, TDS CPC, AAYKAR BHAVAN, SECTOR-3, VAISHALI, GAZIABAD, UTTARPRADESH-201010. 3 COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE, NEW DELHI - 110003 4 CENTRAL BOARD OF DIRECT TAXES, NORTH BLOCK NEW DELHI-110002. REPRESENTED BY ITS CHAIRMAN. 5 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 05.04.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WPC No.12334 of 2023 2 T.R. RAVI, J. ------------------------------------ W.P.(C.) No.12334 of 2023 ------------------------------------ D

The order continues below.

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