Section 206CB of the Income Tax Act

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.

The fee under Section 234E of the Income-tax Act cannot be levied for defaults in filing TDS statements committed prior to June 1, 2015, as the provision for its levy became effective only from that date.

Late fee under section 234E and consequential interest under section 220(2) cannot be levied for Tax Deducted at Source (TDS) defaults that occurred prior to June 1, 2015.

The Supreme Court has held that a liberal approach is desirable for condoning short delays, but a stricter approach is required for inordinate delays. The applicant must demonstrate diligence and explain the reason for the delay.

Deduction under section 54 is not denied to an assessee for mere non-compliance with the procedural requirement of depositing sale consideration in the Capital Gains Account scheme before the due date of filing the return, if the sale consideration is utilized within the time prescribed for investment.

An assessee is entitled to interest under Section 244A(1)(b) when a refund arises on account of payment of self-assessment tax.

Interest is payable by the Revenue to the assessee if the aggregate of installments of Advance Tax or TDS paid exceeds the assessed tax. A later Supreme Court bench referred the question of whether interest is payable on excess advance tax or TDS paid to a larger bench, doubting the correctness of the Sandvik Asia Limited decision on this point.