Levy of Late Fee u/s 234E while issuing ETds quarterely Intimations u/s 200A
Section 234E was enacted in the Income Tax Act w.e.f 1st July 2012 for levy of late fee of Rs.200/- per day where there is delay in filling Qtrly E-Tds Returns.
However, enabling provision for charging Late fee u/s 234E while issuing E-Tds Qtrly Return Intimations u/s 200A was enacted i w.e.f 1st June 2015 with the introduction of sub section 1(c) in Sec 200A.
Only after enabling provision, AO got power to charge late Fee u/s 234E by the enabling provision Sec 200A(1)(c) w.e.f 1st June 2015 while issuing intimations u/s 200A after processing Qtrly ETds Returns.
Now, the question emerges as to Whether late fee u/s 234E can be charged where delay in filling ETDS returns occured prior to 1st June 2015?
Further if for any FY prior to 1st June 2015 E-tds Returns was filed after 1st June 2015 , Late fee can be charged u/s 234E?
If answer is in affirmative than how period of delay will be calculated?.
In absence of any enabling provision, no late charges u/s 234E shall be charged where ETDS return was filed causing delay prior to 1st June 2015. Section 200A don’t have any enforceability in absence of any enabling provision.
Say For FY 2012-13 delay was caused in filling E- TDS Qtrly Returns but Returns are filled prior to 1st June 2015 , NO late Fee u/s 234E.
This view is expressed and held by decisions of several Tribunals including that of Kar.HC in favour of Assessee.
1. Fatheraj Singhvi vs. UOI.( Kar HC).
Medical Suptd. Rural Hospital vs. DCIT, CPC(Tds) GZB.( Pune Trib.).
2. Meghna Gupta vs. ACIT (Del. Trib).
Trimurthy Buildcon Pvt Ltd Vs. DCIT( Jaipur Trib.)
3. Siba Health Care P. Ltd vs. DCIT ( Amritsar Trib).
However Gujarat High Court in the case of Rajesh Kourani vs. UOI pass order in favour of REVENUE holding that Sec 234E is a charing Section and AO is authorised to charge late fee for filling Qtrly ETDS Returns w.e.f 1st July 2012.
In the case of conflicting Judgment of High Courts , SC decision in the case of CIT vs. Vegetable Products Ltd will be applied that means High Court Ruling which is favouring to Assessee will be effective.
However Assessee within Jurisdiction of Gujarat HC will pay late fee u/s 234E w.e.f 1st July 2012 when Sec 234E was enacted in the Act.
Assessee’s outside Gujrat HC jurisdiction:
State is liable to pay late fee u/s 234E w.e.f 1st June 2015.
Where for any FY delay was occured after 1st June 2015 then Late fee u/s 234E shall be imposed for those days of delay from 1st June 2015 onwards.
SAY For FY 2014-15 , 3rd Qtr Return due date was 15th Jan 2015 , Actually the Return was filed on 22nd June 2015.
In such case Late fee u/s 234E shall be charged from 1st June 2015 to 22nd June 2015 that is for 22Days only.
Late fee can not be imposed from 16th January 15 to 22nd June 2015.
This view is confirmed by Recent Judgment of Jeypore Tribunal in the case of Shri Uttam Chand Gangwal vs.ACIT.
For any FY where E-TDS Qtrly Returns was filed prior to 1st June 2015 , no late fee u/s 234E is leviable.
Where for any FY prior to 1st June 2015 Qtrly E-tds Return was filed causing delay after 1st June 2015, Delay period for late fee will start from 1st June 2015 on wards and shall continue up to the actual date of filling ETDS Return.
No concession is there for Assessee within the jurisdiction of Gujarat State I.e., in such case, Late fee u/s 234E is chargeable w.e.f 1st July 2012.