THE PROFESSIONAL COURIERS V. INCOME TAX OFFICER TDS

WP(C)/900/2022

AI Insights

The case involves The Professional Couriers, the petitioner, challenging the demand for late filing fees under section 234E of the Income Tax Act, 1961, for the financial years 2012-13 and 2013-14. The fees were demanded through intimations (Ext.P1 to Ext.P4) issued by the Income Tax Officer (TDS) and the Deputy Commissioner of Income Tax. The petitioner argued that the demand was not valid as the provisions allowing for such fees were not applicable until June 1, 2015. The court referenced a similar case, M/s.Sarala Memorial Hospital v. Union of India, which supported the petitioner's stance that the amendment to the Act was prospective and not retroactive.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 766600 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 12-01-2022
• Assessment Year: misc
• Other Referred Cases: M/s.Sarala Memorial Hospital v. Union of India and Another (W.P.(C) No.37775 of 2018)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: P J ANILKUMAR; K N SREEKUMARAN; N SANTHOSHKUMAR
• Keywords: Late filing fee; Section 200A; Section 234E; Tax deduction at source
• Section: 234E; 200A(1)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS WEDNESDAY, THE 12TH DAY OF JANUARY 2022 / 22ND POUSHA, 1943 WP(C) NO. 900 OF 2022 PETITIONER: THE PROFESSIONAL COURIERS, I, POOLAKATAYIL SHOPPING COMPLEX, CHANDRANAGAR, PALAKKAD, PIN – 678007 BY ADVS. P.J.ANILKUMAR (A-1768) K.N.SREEKUMARAN N.SANTHOSHKUMAR RESPONDENTS: 1 INCOME TAX OFFICER (TDS) AAYKAR BHAVAN, ENGLISH CHRUCH ROAD, PALAKKAD, PIN – 678101 2 DEPUTY COMMISSIONER OF INCOME TAX TDS CPC, AAYKAR BHAVAN, SECTOR-3 , VAISHALI, GAZIABAD,UTTARPRADESH, PIN – 201010 3 CENTRAL BOARD OF DIRECT TAXES NORTH BLOCK, NEW DELHI-110002, REPRESENTED BY ITS CHAIRMAN. W.P.(C) No.900/22 -:2:- 4 UNION OF INDIA, MINISTRY OF FINANCE, DIRECT TAXES DEPARTMENT, NEW DELHI-110001. REPRESENTED BY ITS SECRETARY. BY ADV CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 12.01.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) No.900/22 -:3:- BECHU KURIAN THOMAS, J. ----------------------------------------- W.P.(C) No.900 of 2022 ---------------------------------------- Dated this the 12th day of January, 2022 JUDGMENT By Ext.P1 to Ext.P4 intimations, petitioner has been called upon to pay the late filing fee under section 234E of the Income Tax Act, 1961 (for short,'the Act'). 2. As per the aforesaid intimations, amounts have been demanded as late fee for the periods from 2012-13 to 2013-14 on the basis of the provisions in section 234E of the Act, which is as follows: “234E-Fee for default in furnishing statements:- (1) Without prejudice to the provisions of the Act, where a person fails to deliver or cause to be delivered a statement within the time prescribed in sub-section (3) of Section 200 or the proviso to sub- section (3) of section 206C, he shall be liable to pay, by way of fee, a sum of two hundred rupees for every day during which the failure continues.” 3. Though section 234E of the Act was introduced by the Finance Act, 2012 with effect from 1st July, 2012, since petitioner is being demanded by Ext.P1 to Ext.P4 late fee for not filing the statement of tax deduction at source, it is necessary to refer to section 200A of the Act. Section 200A(1) incorporated clause (c) to W.P.(C) No.900/22 -:4:- clause (f) with effect from 01.06.2015. Sub-clause to section 200A (1) refers to the fee if any to be computed in accordance with the provisions of section 200A(1)(e). It is the claim of the petitioner that till 01.06.2015 petitioner cannot be mulcted with any liability to pay late fee for non filing of any statement of tax deduction at source. 4. I have heard Sri.P.J.Anilkumar, learned counsel for the petitioner, Sri.Christopher Abraham, learned Standing Counsel for the respondents 1 to 3 as well as Sri.S.Manu, learned Assistant Solicitor General of India for the fourth respondent. 5. Learned counsel for the petitioner brought to my attention the decision in M/s.Sarala Memorial Hospital v. Union of India and Another (W.P.(C) No.37775 of 2018) wherein an identical question arose for consideration. After considering the statutory provisions and the implications of the amendment brought in to the Act, it was held that the amendment would take effect only with effect from 1st June, 2015 and is thus prospective in nature. It is submitted that the aforesaid judgment has become final and is binding upon the authorities. 6. In view of the above, the demand in Ext.P1 to Ext.P4 intimations for the period from 2012-13 to 2013-14 is bereft of W.P.(C) No.900/22 -:5:- authority and cannot be legally sustainable. 7. Accordingly, I quash Ext.P1 to Ext.P4 intimations to the extent it demands late fee under section 234E for the period from 2012-13 till 2013-14. The writ petition is therefore allowed as above. Sd/- BECHU KURIAN THOMAS JUDGE AJM W.P.(C) No.900/22 -:6:- APPENDIX OF WP(C) 900/2022 PETITIONER’S EXHIBITS : Exhibit P1 TRUE COPY OF THE INTIMATION OF LEVY U/S 234E, AGAINST 26Q OF Q2 FOR F.Y: 2012-13 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER. Exhibit P2 TRUE COPY OF THE INTIMATION OF LEVY U/S 234E, AGAINST 26Q OF Q3 FOR F.Y: 2012-13 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER. Exhibit P3 TRUE COPY OF THE INTIMATION OF LEVY U/S 234E, AGAINST 26Q OF Q4 FOR F.Y: 2012-13 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER. Exhibit P4 TRUE COPY OF THE INTIMATION OF LEVY U/S 234E, AGAINST 26Q OF Q2 FOR 2013-14 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER. Exhibit P5 TRUE COPY OF THE NOTICE NO. ITBA/COM/F/ 17/2021-22/ 1037038733(1) DATED 18..11..2021 ISSUED BY THE 1ST RESPONDENT REGARDING TDS DUES INCLUDING LATE FEE UNDER 234E. RESPONDENT’S EXHIBITS : NIL AJM //TRUE COPY// PA TO JUDGE "