Surya Constructions V. Union of India, Ministry of Finance, Direct Taxes Department and Deputy Commissioner of Income Tax, Centralized Processing Cell-TDS and Central Board of Direct Taxes

WP(C)/39448/2023

AI Insights

The case involves M/s. Surya Constructions, represented by its managing partner, Shri Jose Valothil, who filed a writ petition against the Union of India and other respondents challenging the intimations for late fee payments for not filing TDS statements on time for the assessment years 2012-13 and 2013-14. The intimations were issued between 2013 and 2014. The petitioner argued that the notices were incorrect based on an amendment to Section 200A effective from June 1, 2015. However, the court dismissed the petition on the grounds of inordinate delay in filing and upheld the notices based on the law as it stood at the time of issuance, specifically Section 234E of the Income Tax Act, 1961, which was applicable from July 1, 2012.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 818227 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 27-11-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961, Finance Act, 2012
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: A KUMAR; P J ANILKUMAR; G MINI; P S SREE PRASAD
• Keywords: Inordinate delay; Intimation; Laches; Late fee; TDS
• Section: 234E; 200A; 200; 206C

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH MONDAY, THE 27TH DAY OF NOVEMBER 2023 / 6TH AGRAHAYANA, 1945 WP(C) NO. 39448 OF 2023 PETITIONER: M/S. SURYA CONSTRUCTIONS, P. B. NO 57, PALACE ARCADE STATUE JUNCTION, TRIPUNITHURA, ERNAKULAM, REPRESENTED BY ITS MANAGING PARTNER, SHRI. JOSE VALOTHIL, PIN – 680301. BY ADVS. SRI. A. KUMAR SRI. P. J. ANILKUMAR SMT. G. MINI SRI. P. S. SREE PRASAD RESPONDENTS: 1 UNION OF INDIA, MINISTRY OF FINANCE, DIRECT TAXES DEPARTMENT, NEW DELHI, REPRESENTED BY ITS' SECRETARY, PIN – 110001. 2 DEPUTY COMMISSIONER OF INCOME TAX, CENTRALIZED PROCESSING CELL-TDS, TDS CPS, AAYAKAR BHAVAN, SECTOR-3, VAISHALI GAZIBAD, UTTARPRADESH, PIN – 201010. 3 CENTRAL BOARD OF DIRECT TAXES, NORTH BLOCK, NEW DELHI, REPRESENTED BY ITS' CHAIRMAN, PIN – 110002. BY ADV. SRI. JOSE JOSEPH – GP THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 27.11.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 39448 OF 2023 2 DINESH KUMAR SINGH, J. -------------------------- W.P.(C) No.39448 of 2023 ------------------------- Dated this the 27th day of November, 2023 JUDGMENT 1. The present writ petition has been filed impugning Exhibits P-1 to P-12 intimations to the petitioner for payment of late fee for not filing statements in respect of the TDS collected by the petitioner within the time prescribed in Sub Section 3 of Section 200 of the Income Tax Act, 1961. The said intimations are in respect of the assessment year 2012- 13 and 2013-14 and they are issued in September, 2013 (Exhibits P-1 to P-3), November, 2013 (Exhibit P-4), February, 2014 (Exhibit P-5), June, 2014 (Exhibits P-6 to P-9), July, 2014 (Exhibit P-10) and November, 2014 (Exhibits P-11 and P-12). The petitioner has approached this Court after more than ten years impugning the said intimations in Exhibits P-1 to P- 12. This writ petition is liable to be dismissed only on the simple ground of inordinate delay and laches in filing the writ petition impugning the intimations in Exhibits P-1 to P-12 which are issued way back in 2013 and 2014. 2. The other aspect of the matter is that Section 234E which was inserted by the Finance Act, 2012 w.e.f. 01.07.2012 is specifically WP(C) NO. 39448 OF 2023 3 provides that for failure to deliver the statement within the time prescribed under Sub-Section (3) of Section 200 or the proviso to Sub- section (3) of section 206C to charge the assessee with a late fee, a sum of Rs. 200/- for every day during which the failure continues. 3. When the impugned notices were issued, this was the law in respect of the payment of the late fee. It cannot be denied that what was to be considered when the notices were issued was the law prevailing on the said date. Subsequent amendment, unless it has retrospective effect, cannot be considered. The submission of the learned Counsel for the petitioner that the amendment in Section 200A has been brought into effect w.e.f. 01.06.2015 and, therefore, the impugned notices issued way back in 2013 and 2014 are incorrect is liable to be rejected at the threshold. The law on the date when the impugned notices were issued was as provided under Section 234E which had been inserted by the Finance Act, 2012 w.e.f. 01.07.2012. 4. In view thereof, I find this writ petition is to be dismissed on the ground of gross delay and laches as well as on merits. Sd/- DINESH KUMAR SINGH JUDGE Svn WP(C) NO. 39448 OF 2023 4 APPENDIX OF WP(C) 39448/2023 PETITIONER’S EXHIBITS EXHIBIT P1 TRUE COPY OF THE INTIMATION DATED 09/09/2013 FOR 2ND QUARTER 26Q IN FINANCIAL YEAR 2012-13 EXHIBIT P2 TRUE COPY OF THE INTIMATION DATED 09/09/2013 FOR 3RD QUARTER 26Q IN FINANCIAL YEAR 2012-13 EXHIBIT P3 TRUE COPY OF THE INTIMATION DATED 09/09/2013 FOR 4TH QUARTER 26Q IN FINANCIAL YEAR 2012-13 EXHIBIT P4 TRUE COPY OF THE INTIMATION DATED 29/11/2013 FOR 2ND QUARTER 24Q IN FINANCIAL YEAR 2013-14 EXHIBIT P5 TRUE COPY OF THE INTIMATION DATED 05/02/2014 FOR 2ND QUARTER 26Q IN FINANCIAL YEAR 2013-14 EXHIBIT P6 TRUE COPY OF THE INTIMATION DATED 28/06/2014 FOR 4TH QUARTER 24Q IN FINANCIAL YEAR 2013-14 EXHIBIT P7 TRUE COPY OF THE INTIMATION DATED 28/06/2014 FOR 3RD QUARTER 24Q IN FINANCIAL YEAR 2013-14 EXHIBIT P8 TRUE COPY OF THE INTIMATION DATED 28/06/2014 FOR 3RD QUARTER 26Q IN FINANCIAL YEAR 2013-14 EXHIBIT P9 TRUE COPY OF THE INTIMATION DATED 28/06/2014 FOR 4TH QUARTER 26Q IN FINANCIAL YEAR 2013-14 EXHIBIT P10 TRUE COPY OF THE INTIMATION DATED 12/07/2014 FOR 3RD QUARTER 26Q IN FINANCIAL YEAR 2012-13 EXHIBIT P11 TRUE COPY OF THE INTIMATION DATED 12/11/2014 FOR 2ND QUARTER 26Q IN FINANCIAL YEAR 2014-15 EXHIBIT P12 TRUE COPY OF THE INTIMATION DATED 12/11/2014 FOR 2ND QUARTER 24Q IN FINANCIAL YEAR 2014-15 EXHIBIT P13 TRUE COPY OF THE JUDGMENT IN W.P © NO.29120/ 2023 DATED 05/09/2023 OF THIS HONOURABLE COURT "