Section 156 of the Income Tax Act

The amendment to Section 200A, enabling the levy of late filing fees under Section 234E, applies prospectively from June 1, 2015. Therefore, no fee under Section 234E can be levied via an intimation issued under Section 200A for periods prior to this date.

The fee under Section 234E for late filing of TDS/TCS statements cannot be levied retrospectively by processing an intimation under Section 200A for defaults occurring before the amendment allowing such processing.

A fee under Section 234E cannot be levied or adjusted in an intimation under Section 200A for TDS statements pertaining to periods prior to June 1, 2015, as the enabling amendment to Section 200A(1)(c) came into effect only from that date.

Section 234E, levying late fees for delayed filing of TDS statements under section 200(3), is constitutionally valid and constitutes a compensatory fee, not a punitive penalty. Before treating any person as an assessee-in-default, an opportunity of being heard must be provided.

Penalty under Section 272A(1)(d) for non-compliance with a notice issued under Section 142(1) is not leviable when the assessee demonstrates a reasonable cause for such non-compliance. The decision defines what constitutes 'reasonable cause' in this context.

Section 201 is attracted only when an employer fails to deduct or pay tax on employee salaries as required by the Act. An employer has a duty to make an honest and fair estimate of the employee's tax liability when deducting TDS on salary income.

The Supreme Court upholds the constitutional validity of Section 234E of the Income Tax Act, establishing the principle of judicial restraint. Courts generally defer to the legislature's wisdom in economic and administrative matters, acknowledging their lack of expertise in these fields.

Section 234E creates a substantive liability to pay late fees for failure to deliver statements under section 200(3) within the prescribed time, effective from July 1, 2012, independent of the recovery mechanism under section 200A(1)(c).

The opportunity of hearing provided to an assessee must be real, effective, and realistic, not merely notional, and tax authorities are incumbent to decide cases on their merits after affording due opportunity.