Section 234E of the Income Tax Act

Income-tax Act, 2025: s.427

Section 234E of the Income-tax Act, 1961 corresponds to section 427 (Fee for default in furnishing statements) of the Income-tax Act, 2025.

Read section 427 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 234E is Fatehraj Singhvi v. UOI (73 Taxmann.com 252), cited in 1,778 of the 4,792 judgments on BharatTax that turn on this section.

Leading authorities on Section 234E

Fatehraj Singhvi v. UOI
73 Taxmann.com 252 · 2016 · High Court
1,778
citing judgments

Late fees under section 234E are not applicable for periods prior to June 1, 2015, as the amendment to section 200A inserting clause (c) was effective from that date.

Kourani v. Union OF India
83 Taxmann.com 137 · 2017 · High Court
1,708
citing judgments

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.

Fateh Raj Singhvi & Ors. v. UOI
289 CTR 602 · 2016 · High Court
844
citing judgments

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.

Rashmikant Kundalia v. Union of India
54 Taxmann.com 200 · 2015 · High Court
702
citing judgments

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.

Olari Little Flower Kuries (P.) Ltd. v. UOI
440 ITR 26 · 2022 · High Court
614
citing judgments

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.

Gajanan Constructions v. DCIT
74 Taxmann.com 6 · 2016 · ITAT
465
citing judgments

Late fees under section 234E can only be levied prospectively from June 1, 2015. Levying late fees for periods prior to this date is not permissible.

Dundlod Shikshan Sansthan v. Union of India
63 Taxmann.com 243 · 2015 · High Court
397
citing judgments

The imposition of fees for late filing of TDS/TCS returns prior to the Finance Act, 2015 amendments was not illegal, and the Rajasthan High Court found no justification to interfere with such compensatory fees.

Jiji Varghese v. ITO(TDS) & Ors.
443 ITR 267 · 2022 · High Court
220
citing judgments

Section 234E fee cannot be imposed for periods prior to June 1, 2015. This applies even when the processing of the return under Section 200A(c) occurred before that date.

Sree Narayana Guru Smaraka Sangam Upper Primary School v. Union of India and Others
392 ITR 457 · 2017 · High Court
217
citing judgments
Medical Superintendent Rural Hospital, DOBI BK v. DCIT
100 Taxmann.com 78 · 2018 · ITAT
190
citing judgments

Late fee levied under section 234E for filing TDS returns prior to June 1, 2015, is invalid. This is because the TDS return was filed before the effective date of the relevant provisions for levying such late fees.

Judgments on Section 234E

Kedar Associates, Pune vs. TDS Ward 2, Pune

In the result, appeal of the assessee in ITA No

ITA 1533/PUN/2024[2014-15]Status: DisposedITAT Pune29 Nov 2024AY 2014-15

Bench: Shri R. K. Panda & Shri Vinay Bhamoreआयकर अपील सं. / Ita Nos.1530 To 1533/Pun/2024 िनधा"रण वष" / Assessment Years : 2013-14 & 2014-15 Kedar Associates, Vs. Ito, Tds Ward-2, Pune. 105A Narayan Peth Off Lakmi Road, Pune- 411030. Pan : Aabfk6598A Appellant Respondent Assessee By : Shri Sharad A. Vaze Revenue By Shri Ramnath P. Murkunde : Date Of Hearing : 13.11.2024 Date Of Pronouncement : 29.11.2024 आदेश / Order Per Vinay Bhamore, Jm: The Above Captioned Four Appeals Filed By The Assessee Are Directed Against The Separate Orders Of Ld. Cit(A)/Nfac Dated 13.04.2023 For The Assessment Years 2013-14 & 2014-15 Respectively. 2. Since Identical Facts & Common Issues Are Involved In All The Above Captioned Four Appeals Of The Assessee, Therefore, We Proceed To Dispose Of The Same By This Common Order. 3. At The Outset, We Find That There Is Delay Of 400 Days In Filing Of These Appeals. Ld. Ar Furnished An Affidavit Explaining The Reasons Of Delay In Filing Of These Appeals. We Are Satisfied With The Reasons Mentioned In The Application For Condonation Of Delay Which Is Duly Supported By An Affidavit. Ld. Dr Raised No Serious Objection Against The Delay Condonation Request Made By The Assessee. Accordingly, The Delay Of 400 Days In Filing Of These Appeals Is Condoned & The Appeals Are Admitted For Adjudication. 4. First, We Shall Take Up The Appeal Of The Assessee In Ita No.1530/Pun/2024 For A.Y. 2013-14 (Quarter 2) For Adjudication.

For Appellant: Shri Sharad A. Vaze
Section 200ASection 234E

Kedar Associates, Pune vs. TDS Ward 2 Pune, Pune

In the result, appeal of the assessee in ITA No

ITA 1532/PUN/2024[2013-14]Status: DisposedITAT Pune29 Nov 2024AY 2013-14

Bench: Shri R. K. Panda & Shri Vinay Bhamoreआयकर अपील सं. / Ita Nos.1530 To 1533/Pun/2024 िनधा"रण वष" / Assessment Years : 2013-14 & 2014-15 Kedar Associates, Vs. Ito, Tds Ward-2, Pune. 105A Narayan Peth Off Lakmi Road, Pune- 411030. Pan : Aabfk6598A Appellant Respondent Assessee By : Shri Sharad A. Vaze Revenue By Shri Ramnath P. Murkunde : Date Of Hearing : 13.11.2024 Date Of Pronouncement : 29.11.2024 आदेश / Order Per Vinay Bhamore, Jm: The Above Captioned Four Appeals Filed By The Assessee Are Directed Against The Separate Orders Of Ld. Cit(A)/Nfac Dated 13.04.2023 For The Assessment Years 2013-14 & 2014-15 Respectively. 2. Since Identical Facts & Common Issues Are Involved In All The Above Captioned Four Appeals Of The Assessee, Therefore, We Proceed To Dispose Of The Same By This Common Order. 3. At The Outset, We Find That There Is Delay Of 400 Days In Filing Of These Appeals. Ld. Ar Furnished An Affidavit Explaining The Reasons Of Delay In Filing Of These Appeals. We Are Satisfied With The Reasons Mentioned In The Application For Condonation Of Delay Which Is Duly Supported By An Affidavit. Ld. Dr Raised No Serious Objection Against The Delay Condonation Request Made By The Assessee. Accordingly, The Delay Of 400 Days In Filing Of These Appeals Is Condoned & The Appeals Are Admitted For Adjudication. 4. First, We Shall Take Up The Appeal Of The Assessee In Ita No.1530/Pun/2024 For A.Y. 2013-14 (Quarter 2) For Adjudication.

For Appellant: Shri Sharad A. Vaze
Section 200ASection 234E

Kedar Associates, Pune vs. TDS Ward 2, Pune

In the result, appeal of the assessee in ITA No

ITA 1531/PUN/2024[2013-14]Status: DisposedITAT Pune29 Nov 2024AY 2013-14

Bench: Shri R. K. Panda & Shri Vinay Bhamoreआयकर अपील सं. / Ita Nos.1530 To 1533/Pun/2024 िनधा"रण वष" / Assessment Years : 2013-14 & 2014-15 Kedar Associates, Vs. Ito, Tds Ward-2, Pune. 105A Narayan Peth Off Lakmi Road, Pune- 411030. Pan : Aabfk6598A Appellant Respondent Assessee By : Shri Sharad A. Vaze Revenue By Shri Ramnath P. Murkunde : Date Of Hearing : 13.11.2024 Date Of Pronouncement : 29.11.2024 आदेश / Order Per Vinay Bhamore, Jm: The Above Captioned Four Appeals Filed By The Assessee Are Directed Against The Separate Orders Of Ld. Cit(A)/Nfac Dated 13.04.2023 For The Assessment Years 2013-14 & 2014-15 Respectively. 2. Since Identical Facts & Common Issues Are Involved In All The Above Captioned Four Appeals Of The Assessee, Therefore, We Proceed To Dispose Of The Same By This Common Order. 3. At The Outset, We Find That There Is Delay Of 400 Days In Filing Of These Appeals. Ld. Ar Furnished An Affidavit Explaining The Reasons Of Delay In Filing Of These Appeals. We Are Satisfied With The Reasons Mentioned In The Application For Condonation Of Delay Which Is Duly Supported By An Affidavit. Ld. Dr Raised No Serious Objection Against The Delay Condonation Request Made By The Assessee. Accordingly, The Delay Of 400 Days In Filing Of These Appeals Is Condoned & The Appeals Are Admitted For Adjudication. 4. First, We Shall Take Up The Appeal Of The Assessee In Ita No.1530/Pun/2024 For A.Y. 2013-14 (Quarter 2) For Adjudication.

For Appellant: Shri Sharad A. Vaze
Section 200ASection 234E

Kedar Associates, Pune vs. TDS Ward 2, Pune

In the result, appeal of the assessee in ITA No

ITA 1530/PUN/2024[2013-14]Status: DisposedITAT Pune29 Nov 2024AY 2013-14

Bench: Shri R. K. Panda & Shri Vinay Bhamoreआयकर अपील सं. / Ita Nos.1530 To 1533/Pun/2024 िनधा"रण वष" / Assessment Years : 2013-14 & 2014-15 Kedar Associates, Vs. Ito, Tds Ward-2, Pune. 105A Narayan Peth Off Lakmi Road, Pune- 411030. Pan : Aabfk6598A Appellant Respondent Assessee By : Shri Sharad A. Vaze Revenue By Shri Ramnath P. Murkunde : Date Of Hearing : 13.11.2024 Date Of Pronouncement : 29.11.2024 आदेश / Order Per Vinay Bhamore, Jm: The Above Captioned Four Appeals Filed By The Assessee Are Directed Against The Separate Orders Of Ld. Cit(A)/Nfac Dated 13.04.2023 For The Assessment Years 2013-14 & 2014-15 Respectively. 2. Since Identical Facts & Common Issues Are Involved In All The Above Captioned Four Appeals Of The Assessee, Therefore, We Proceed To Dispose Of The Same By This Common Order. 3. At The Outset, We Find That There Is Delay Of 400 Days In Filing Of These Appeals. Ld. Ar Furnished An Affidavit Explaining The Reasons Of Delay In Filing Of These Appeals. We Are Satisfied With The Reasons Mentioned In The Application For Condonation Of Delay Which Is Duly Supported By An Affidavit. Ld. Dr Raised No Serious Objection Against The Delay Condonation Request Made By The Assessee. Accordingly, The Delay Of 400 Days In Filing Of These Appeals Is Condoned & The Appeals Are Admitted For Adjudication. 4. First, We Shall Take Up The Appeal Of The Assessee In Ita No.1530/Pun/2024 For A.Y. 2013-14 (Quarter 2) For Adjudication.

For Appellant: Shri Sharad A. Vaze
Section 200ASection 234E