KOLLIPARAAPPARAO COTTON MILLS PVT LTD,GUNTUR vs. INCOME TAX OFFICER, WARD-1(1), GUNTUR

Facts

The assessee, Kolliparaapparao Cotton Mills Pvt. Ltd., filed TDS quarterly returns (Form No.26Q) for the 3rd quarter of Financial Year 2012-13 belatedly. Consequently, the AO levied a late filing fee of Rs.34,800/- and interest of Rs.32,967/- under Section 234E and Section 154 read with Section 200A, raising a demand. The CIT(A) dismissed the assessee's appeal, leading to the present appeal before the Tribunal.

Held

The Tribunal held that the enabling provision for computation and levy of late filing fees under Section 234E via processing under Section 200A was inserted with effect from 01.06.2015 by Finance Act, 2015. Since the period of default for which the fee was levied in the assessee's case was prior to this effective date, Section 234E could not be enforced retrospectively. The Tribunal relied on precedents from Karnataka High Court, Kerala High Court, and its own earlier decisions.

Key Issues

Whether the late filing fee under Section 234E of the Income Tax Act, 1961, can be levied for belatedly filed TDS statements pertaining to a period prior to 01.06.2015, given that the enabling provision for its computation and processing under Section 200A was inserted with effect from 01.06.2015.