MANJU SUJEET SHRIVASTAVA,NAVI MUMBAI vs. COMMISSIONER OF INCOME TAX, NAVI MUMBAI

ITA 5419/MUM/2026Status: DisposedITAT Mumbai09 October 2026AY 2015-166 pages
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What did the Tribunal hold?

The Tribunal held that while Section 234E was introduced in 2012, the specific enabling provision for computing such fee under Section 200A, namely Section 200A(1)(c), was introduced w.e.f. 01.06.2015. Following the judgments of the Hon'ble Karnataka High Court in Fatheraj Singhvi & Ors. v. Union of India & Ors. and the Hon'ble Kerala High Court in Sarala Memorial Hospital v. Union of India & Anr. and Jiji Varghese v. Income Tax Officer (TDS), the Tribunal ruled that the amendment to Section 200A operates prospectively. Therefore, fee attributable to the period prior to 01.06.2015 cannot be computed through Section 200A, even if the TDS statements were filed or processed subsequently. The Tribunal acknowledged contrary views from other High Courts but chose to follow the decisions favorable to the assessee, citing the principle from CIT v. Vegetable Products Ltd. For AY 2014-15, the fee attributable to the period prior to 01.06.2015 was directed to be deleted. However, since the default continued beyond 01.06.2015, the Assessing Officer was directed to recompute the fee only for the period commencing from 01.06.2015 until the respective dates of filing, subject to statutory ceilings. The connected appeal for AY 2015-16 was partly allowed on similar terms.

What were the facts?

The Assessee, Manju Sujeet Shrivastava, filed appeals against the common order dated 12.03.2026 passed by the National Faceless Appeal Centre (NFAC), Delhi, for Assessment Years (AYs) 2014-15 and 2015-16. The appeals challenged the levy of late filing fee under Section 234E of the Income Tax Act, 1961, for processing TDS statements under Section 200A. For AY 2014-15, the late filing fee aggregated to Rs. 1,68,000/- for TDS statements pertaining to FY 2013-14. The TDS amounts were deposited before 01.06.2015, but Forms 24Q and 26Q were filed on 14.07.2015 and 27.07.2015, respectively. The NFAC sustained the levy, citing the filing dates after the amendment to Section 200A(1)(c) w.e.f. 01.06.2015. For AY 2015-16, the Assessee contended that no fee should be computed for the period prior to 01.06.2015.

What were the issues?

1. Whether the levy of late filing fee under Section 234E, computed under Section 200A, is sustainable for the period prior to 01.06.2015, when the TDS statements were filed or processed after this date? Assessee's contentions: - Prior to 01.06.2015, Section 200A did not authorize the computation of fee under Section 234E. - The amendment to Section 200A w.e.f. 01.06.2015 is prospective and cannot be applied to the preceding period. - Reliance was placed on judgments of the Hon'ble Karnataka High Court in Fatheraj Singhvi & Ors. v. Union of India & Ors. and the Hon'ble Kerala High Court in Sarala Memorial Hospital v. Union of India & Anr. and Jiji Varghese v. Income Tax Officer (TDS). Revenue's contentions: - Supported the impugned orders. - Relied on judgments of the Hon'ble Gujarat High Court in Rajesh Kourani v. Union of India, the Hon'ble Rajasthan High Court in Dundlod Shikshan Sansthan v. Union of India, and the Hon'ble jurisdictional Bombay High Court in Rashmikant Kundalia v. Union of India. - Contended that Section 234E independently creates the liability for late filing fee, and the amendment to Section 200A, being procedural, does not affect its enforceability.

Which sections of the Income-tax Act were involved?

Section 234E,Section 200A,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “D”, MUMBAI

Before: SHRI NARENDER KUMAR CHOUDHRY & SHRI RATNA DASGUPTA

Pronounced: 09.10.2026

Per : Narender Kumar Choudhry, Judicial Member These appeals have been preferred by the Assessee against the common order dated 12.03.2026, impugned herein, passed by the Ld. National Faceless Appeal Centre (NFAC), Delhi (in short, “Ld. Commissioner”) u/s 250 of the Income Tax Act, 1961 (in short, “the Act”) for A.Ys. 2014-15 and 2015-16, involving a common issue concerning the levy of late filing fee u/s 234E while processing TDS statements u/s 200A of the Act.

2.

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