The Decision In M/S.sarala Memorial Hospital v. In View Of The Above, The Demand For Late Fees For The Periodtill The First Quarter Of The Assessment Year 2015-16 Is Without

W.P.(C) No.29444/21 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS MONDAY, THE 20 DAY OF DECEMBER 2021 / 29TH AGRAHAYANA, 1943 WP(C) NO. 29444 OF 2021 PETITIONER: NILA BAKERS & CONFECTIONERIES (I) PVT. LTD.SIDCO INDUSTRIAL PARK, KALLIPADAM, SHORANUR, PALAKKAD-679 122. (REPRESENTED BY SRI. M.SATHYANARAYANAN, DIRECTOR).BY ADVS.K.N.SREEKUMARANP.J.ANILKUMAR (A-1768)N.SANTHOSHKUMAR RESPONDENTS: 1INCOME TAX OFFICER (TDS)AAYKAR BHAVAN, ENGLISH CHURCH ROAD, PALAKKAD-678 101.2DEPUTY COMMISSIONER OF INCOME TAXTDS CPC, AAYKAR BHAVAN, SECTOR-3, VAISHALI, GAZIABAD, UTTARPRADESH-201010.3CENTRAL BOARD OF DIRECT TAXESNORTH BLOCK NEW DELHI-110002, REPRESENTED BY ITS CHAIRMAN.4UNION OF INDIAMINISTRY OF FINANCE, DIRECT TAXES DEPARTMENT, NEWDELHI-110 001, REPRESENTED BY ITS SECRETARY.OTHER PRESENT:SRI CHRISTOPHER ABRAHAM -SC IT DEPT, SRI MANU S ASG W.P.(C) No.29444/21 THIS WRIT PETITION (CIVIL) HAVING COME UP FORADMISSION ON 20.12.2021, THE COURT ON THE SAME DAYDELIVERED THE FOLLOWING: BECHU KURIAN THOMAS, J. ----------------------------------------- W.P.(C) No.29444 of 2021 ---------------------------------------- Dated this the 20[th] day of December, 2021 JUDGMENT By Ext.P1 to Ext.P15 intimations, petitioner has been calledupon to pay the late filing fee under section 234E of the Income TaxAct, 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 2015-16 onthe basis of the provisions in section 234E of the Act, which is asfollows: “234E-Fee for default in furnishing statements:- (1) Without prejudice to the provisions of the Act, where a personfails to deliver or cause to be delivered a statement within the timeprescribed 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 failurecontinues.” 3. Though section 234E of the Act was introduced by the Finance Act, 2012 with effect from 1[st] July, 2012, since petitioner is being demanded by Ext.P1 to Ext.P15, the late fee for not filing thestatement of tax deduction at source, it is necessary to refer tosection 200A of the Act. Section 200A(1) incorporated clause (c) to W.P.(C) No.29444/21 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 theprovisions of section 200A(1)(e). It is the claim of the petitioner thattill 01.06.2015 petitioner cannot be mulcted with any liability to paylate fee for non filing of any statement of tax deduction at source. 4. I have heard Sri.K.N.Sreekumaran, learned counsel for thepetitioner, Sri.Christopher Abraham, learned Standing Counsel forthe respondents 1 to 3 as well as Sri.S.Manu, learned AssistantSolicitor 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 Indiaand Another (W.P.(C) No.37775 of 2018) wherein an identicalquestion arose for consideration. After considering the statutoryprovisions and the implications of the amendment brought into theAct, it was held that the amendment would take effect only from 1[st]June, 2015 and is thus prospective in nature. It is submitted that theaforesaid judgment has become final and is binding upon theauthorities. 6. In view of the above, the demand for late fees for the periodtill the first quarter of the assessment year 2015-16 is without authority. The demand in Ext.P1 to Ext.P15 intimations for the period from 2012-13 to the first quarter of assessment year 2015-16is bereft of authority and cannot be legally sustainable. 7. Accordingly, I quash Ext.P1 to Ext.P15 intimations to theextent it demands late fee under section 234E for the period from 6. In view of the above, the demand for late fees for the periodtill the first quarter of the assessment year 2015-16 is without authority. The demand in Ext.P1 to Ext.P15 intimations for the period from 2012-13 to the first quarter of assessment year 2015-16is bereft of authority and cannot be legally sustainable. 7. Accordingly, I quash Ext.P1 to Ext.P15 intimations to theextent it demands late fee under section 234E for the period from 2011-12 till 01.06.2015. The writ petition is therefore allowed as above. AJM Sd/- BECHU KURIAN THOMAS JUDGE W.P.(C) No.29444/21 APPENDIX OF WP(C) 29444/2021 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 P2Exhibit P3 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. 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 Q3 FOR F.Y:2013-14 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER. Exhibit P5Exhibit P6Exhibit P6 TRUE COPY OF THE INTIMATION OF U/S 234E,AGAINST 26Q OF Q4 FOR F.Y:2013-14 ISSUEDBY THE 2ND RESPONDENT TO THE PETITIONER.TRUE COPY OF THE INTIMATION OF U/S 234E,AGAINST 26Q OF Q1 FOR 2014-15 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER. Exhibit P7 TRUE COPY OF THE INTIMATION OF U/S 234E,AGAINST 24Q OF Q1 FOR 2014-15 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER. Exhibit P8Exhibit P9Exhibit P10 TRUE COPY OF THE INTIMATION OF U/S 234E,AGAINST 26Q OF Q2 FOR 2014-15 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER. TRUE COPY OF THE INTIMATION OF U/S 234E,AGAINST 24Q OF Q2 FOR 2014-15 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER. TRUE COPY OF THE INTIMATION OF U/S 234E, W.P.(C) No.29444/21 -:7:- AGAINST 26Q OF Q3 FOR 2014-15 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER.THE 2ND RESPONDENT TO THE PETITIONER. Exhibit P11TRUE COPY OF THE INTIMATION OF U/S 234E,AGAINST 24Q OF Q3 FOR 2014-15 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER.AGAINST 24Q OF Q3 FOR 2014-15 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER. Exhibit P12TRUE COPY OF THE INTIMATION OF U/S 234E,AGAINST 24Q OF Q4 FOR 2014-15 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER.AGAINST 24Q OF Q4 FOR 2014-15 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER.Exhibit P13TRUE COPY OF THE INTIMATION OF U/S 234E,AGAINST 26Q OF Q4 FOR 2014-15 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER.AGAINST 26Q OF Q4 FOR 2014-15 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER.Exhibit P14TRUE COPY OF THE INTIMATION OF U/S 234E,AGAINST 24Q OF Q1 FOR 2015-16 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER.AGAINST 24Q OF Q1 FOR 2015-16 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER.Exhibit P15TRUE COPY OF THE INTIMATION OF U/S 234E,AGAINST 26Q OF Q1 FOR 2015-16 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER.AGAINST 26Q OF Q1 FOR 2015-16 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER. Exhibit P16TRUE COPY OF THE NOTICE NO.ITBA/COM/F/17/2021-22/1037145198(1) DATED 23.11.2021 ISSUED BY THE IST RESPONDENT REGARDING TDS DUES INCLUDING LATE FEED UNDER 234E.NO.ITBA/COM/F/17/2021-22/1037145198(1) DATED 23.11.2021 ISSUED BY THE IST RESPONDENT REGARDING TDS DUES INCLUDING LATE FEED UNDER 234E. RESPONDENT’S EXHIBITS: NIL AJM //TRUE COPY// PA TO JUDGE