Section 271H of the Income Tax Act

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.

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.

The Madras High Court has upheld the validity of the levy of fees under Section 234E and penalties under Section 271H, finding the charging provision to be Section 234E, with the power to levy existing from 01/07/2012.

The rule of consistency does not override the correct application of law and should not be applied if it leads to an anomalous outcome.

The amendment to Section 200A(1)(c) of the Income-tax Act, allowing for the levy of fees under Section 234E, is prospective in nature and applies only from June 1, 2015. Consequently, no fee under Section 234E can be levied for delayed filing of TDS/TCS statements pertaining to quarters prior to this date.

Receipt of a non-compete fee, even if it does not alter the assessee's business structure, impairs the carrying on of their activity, constituting a loss of a source of income.

Section 234E of the Income Tax Act, 1961, which levies a fee for delayed filing of TDS statements, is intra vires the Constitution. However, this fee cannot be levied for statements filed prior to June 1, 2015.

Each income tax assessment year is a self-contained period, and the rule of res judicata does not apply, meaning decisions from one assessment year are not binding on subsequent assessment years.

The case is cited for its relevance to provisions concerning Tax Deducted at Source (TDS) and Tax Collected at Source (TCS), particularly in relation to amendments introduced by the Finance Bill, 2012, including Section 234E.