Sutheepan Sowmini vs. INCOME TAX OFFICER (TDS)

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WP(C)/29120/2023HC KeralaKLHC01063739202305 September 2023Author: HONOURABLE MR. JUSTICE D. K. SINGH6 pages
AI SummaryAllowed

What did the High Court hold?

The High Court allowed the writ petition, finding that the petitioner's grievance was covered by the Division Bench judgment in M/S. OLARI LITTLE FLOWER KURIES PVT. LTD. Vs. UNION OF INDIA. The Court held that late fees under Section 234E cannot be levied for periods prior to June 1, 2015. Consequently, the impugned orders (Ext. P1 to Ext.P6) levying late fees for the assessment year 2013-2014 were set aside. The ratio decidendi is that the statutory provision for levying late fees for delayed TDS return filing, as applied in this case, is not applicable to periods preceding June 1, 2015.

What were the facts?

The petitioner, Sutheepan Sowmini, is challenging demand notices (Ext.P1 to Ext.P6) for late fees levied under Section 234E of the Income Tax Act, 1961. These fees relate to the delayed filing of a TDS return for the assessment year 2013-2014. The petitioner's primary contention is that the demand notices are beyond jurisdictional limits and that no late fee could be levied for periods prior to June 1, 2015. The petitioner relies on a previous judgment of the High Court of Kerala in a similar case.

What were the issues?

1. Whether late fees under Section 234E of the Income Tax Act, 1961, can be levied for delayed filing of TDS returns for periods prior to June 1, 2015? Assessee's Contention: The petitioner argues that no late fee could be levied for periods prior to June 1, 2015, asserting that the demand notices issued for the assessment year 2013-2014, which falls within this period, are invalid. The petitioner cites the judgment in M/S. OLARI LITTLE FLOWER KURIES PVT. LTD. Vs. UNION OF INDIA (W.P.(C) No. 11175 of 2014) as precedent. Revenue's Contention: The judgment does not record any specific arguments made by the revenue.

Which sections of the Income-tax Act were involved?

Section 234E

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH TUESDAY, THE 5TH DAY OF SEPTEMBER 2023 / 14TH BHADRA, 1945 WP(C) NO. 29120 OF 2023 PETITIONER: SUTHEEPAN SOWMINI AGED 61 YEARS 12/1294/5, THERADAPUZHA BUILDING., R.S.ROAD, PALAKKAD, PIN – 678 001. BY ADVS. K.N.SREEKUMARAN P.J.ANILKUMAR (A-1768) N.SANTHOSHKUMAR RESPONDENTS: 1 INCOME TAX OFFICER (TDS) AAYKAR BHAVAN, ENGLISH CHURCH RAOD, PALAKKAD, PIN – 678 001. 2 ASSISTANT COMMISSIONER OF INCOME TAX TDS CPC, AAYKAR BHAVAN, SECTOR-3, VAISHALI, GAZIABAD, UTTARPRADESH, PIN – 201 010. 3 COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE, NEW DELHI, PIN – 110 003. 4 CENTRAL BOARD OF DIRECT TAXES NORTH BLOCK, NEW DELHI, PIN – 110 002 REPRESENTED BY ITS CHAIRMAN. 5 THE UNION OF INDIA, MINISTRY OF FINANCE, DIRECT TAXES DEPARTMENT, NEW DELHI, PIN – 110 001 REPRESENTED BY ITS SECRETARY. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 05.09.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 29120 OF 2023 2 DINESH KUMAR SINGH, J. -------------------------------------------- WP(C) NO. 29120 OF 2023 -------------------------------------------- Dated this the 05th day of September, 2023

J U D G M E N T

1.

Heard Sri. K.N.Sreekumaran, Learned Counsel for the petitioner and Sri. Christopher Abraham, Standing Counsel for Income Tax.

2.

The petitioner is challenging Ext.P1 to Ext.P6 pertaining to levied fees under Section 234E of the Income Tax Act, 1961 for imposing of late fee for filing delayed previous TDS return for the assessment year 2013-2014. The limited ground on which this writ petition has been filed is that, the demand notices are beyond juri ictional envisagement. No late fee could be levied for not filing the previous return

WP(C) NO. 29120 OF 2023 3 for the period prior to 01.06.2015. 3. The Learned Counsel for the petitioner also submits that, in the present case, the period for which the impugned demand notices have been issued is prior to 01.06.2015 in respect of the assessment year 2013-2014. The Learned Counsel for the petitioner has also placed reliance on the grounds of the Judgment of this Court in the case of M/S. OLARI LITTLE “9.1 Stated briefly, the writ petitioner challenges the intimation received under Section 200 A from the respondent/Revenue calling upon the writ petitioner to pay late fee for delayed filing of quarterly statements of WP(C) NO. 29120 OF 2023 4 TDS. The periods for which the notices are issued are stated as prior to 01.06.2015. By following the judgment in W.P.(C) No. 37775/2018, as confirmed in W.A.No.722/2019, the writ petition stands allowed and the intimations dealing with filing of belated statements prior to 01.06.2015 are set aside. A return filed subsequent to 01.06.2015 is present, the respondents are given liberty to issue notice, hear the writ petitioner, and pass orders in accordance with law.”

4.

I find that the grievance of the petitioner thus covered by the said Judgment of the Division Bench and therefore, the Writ Petition is allowed. Impugned orders in Ext. P1 to Ext.P6 are hereby set aside. DINESH KUMAR SINGH JUDGE rpr

WP(C) NO. 29120 OF 2023 5

Appendix — schedule of exhibits
APPENDIX OF WP(C) 29120/2023 PETITIONER’S EXHIBITS Exhibit-P 1 TRUE COPY OF THE INTIMATION DATED 08..04..2018 FOR 2ND QUARTER 24Q IN FINANCIAL YEAR 2012-13. Exhibit-P 2 TRUE COPY OF THE INTIMATION DATED 15..04..2018 FOR 2ND QUARTER 26Q IN FINANCIAL YEAR 2012-13. Exhibit-P 3 TRUE COPY OF THE INTIMATION DATED 16..04..2018 FOR 3RD QUARTER 26Q IN FINANCIAL YEAR 2012-13. Exhibit-P 4 TRUE COPY OF THE INTIMATION DATED 08..04..2018 FOR 3RD QUARTER 24Q IN FINANCIAL YEAR 2012-13. Exhibit-P 5 TRUE COPY OF THE INTIMATION DATED 08..04..2018 FOR 4TH QUARTER 24Q IN FINANCIAL YEAR 2012-13. Exhibit-P 6 TRUE COPY OF THE INTIMATION DATED 08..04..2018 FOR 4TH QUARTER 26Q IN FINANCIAL YEAR 2012-13. Exhibit -P7 TRUE COPY OF THE APPELLATE ORDER DATED 23..12..2021 FILED AGAINST EXHIBIT-P1 ISSUED BY THE 3RD RESPONDENT U/S.250 OF THE INCOME TAX ACT BEARING DIN-ITBA/NFAC/S/250/2021-22/1038054365(1). Exhibit -P8 TRUE COPY OF THE APPELLATE ORDER DATED 23..06..2023 FILED AGAINST EXHIBIT-P2 ISSUED BY THE 3RD RESPONDENT U/S.250 OF THE INCOME TAX ACT BEARING DIN-ITBA/NFAC/S/250/2023-24/1053902603(1). Exhibit-P 9 TRUE COPY OF THE APPELLATE ORDER DATED 23..12..2021 FILED AGAINST EXHIBIT-P3 ISSUED BY THE 3RD RESPONDENT U/S.250 OF THE WP(C) NO. 29120 OF 2023 6 INCOME TAX ACT BEARING DIN-ITBA/NFAC/S/250/2021-22/1038054976(1). Exhibit-P 10 TRUE COPY OF THE APPELLATE ORDER DATED 24..12..2021 FILED AGAINST EXHIBIT-P4 ISSUED BY THE 3RD RESPONDENT U/S.250 OF THE INCOME TAX ACT BEARING DIN-ITBA/NFAC/S/250/2021-22/1038100505(1). Exhibit-P 11 TRUE COPY OF THE APPELLATE ORDER DATED 23..12..2021 FILED AGAINST EXHIBIT-P5 ISSUED BY THE 3RD RESPONDENT U/S.250 OF THE INCOME TAX ACT BEARING DIN-ITBA/NFAC/S/250/2021-22/1038054483(1). Exhibit-P 12 TRUE COPY OF THE APPELLATE ORDER DATED 23..12..2021FILED AGAINST EXHIBIT-P6 ISSUED BY THE 3RD RESPONDENT U/S.250 OF THE INCOME TAX ACT BEARING DIN-ITBA/NFAC/S/250/2021- 22/1038054898(1). Exhibit -P13 TRUE COPY OF THE RECOVERY NOTICE DATED 05..07..2023 BEARING DIN:ITBA/COM/F/17/2023-24/1054143659(1) ISSUED BY THE 1ST RESPONDENT. Exhibit -P14 TRUE COPY OF THE JUDGMENT IN HEAD MASTER VS INCOME TAX OFFICER (TDS), W.P.(C) 1078/2022 DATED 18.05.2022.

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