The Decision In M/S.sarala Memorial Hospital v. Union Of India And

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS TUESDAY, THE 30 DAY OF NOVEMBER 2021/9TH AGRAHAYANA, 1943 WP(C) NO. 24533 OF 2021 PETITIONER: SAJEEV MATHEW AND COMPANYCHERUMATTATHIL PLAZA, OPP.ARAKUZHA ROAD JN., MUVATTUPUZHA, ERNAKULAM-686661, REPRESENTED BY ITS MANAGING PARTNER MR.SAJEEV MATHEW.BY ADVS.SMT.S.K.DEVISRI.M.RAJ MOHANSRI.SHANMUGHAM D. JAYANSMT.P.K.MAYA DEVI RESPONDENTS: 1THE INCOME TAX OFFICER(TDS) KOCHI (2),INCOME TAX BUILDINGS, I.S.PRESS ROAD, ERNAKULAM-682018.2UNION OF INDIAMINISTRY OF FINANCE, DIRECT TAXES DEPARTMENT, REPRESENTED BY ITS SECRETARY, NEW DELHI-110001.R1 BY SRI.CHRISTOPHER ABRAHAM, SC R2 BY SRI.S.MANU, ASGI THIS WRIT PETITION (CIVIL) HAVING COME UP FORADMISSION ON 30.11.2021, THE COURT ON THE SAME DAYDELIVERED THE FOLLOWING: W.P.(C) No.24533/21 -:2:- BECHU KURIAN THOMAS, J. ----------------------------------------- W.P.(C) No.24533 of 2021 ---------------------------------------- Dated this the 30[th] day of November, 2021 JUDGMENT By Ext.P1 notice dated 24.09.2021, petitioner has been called upon to pay the late filing fee under section 234E of the Income TaxAct, 1961 (for short,'the Act'). 2. As per the aforesaid demand notice, an amount of Rs.4,02,150/- is demanded for the periods from 2011-12 to 2021-22 on the 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 late fee for not filing the statement of taxdeduction at source, it is necessary to refer to section 200A of the W.P.(C) No.24533/21 -:3:- Act. Section 200A(1) incorporated clause (c) to clause (f) with effect from 01.06.2015. Sub-clause to section 200A (1) refers to the fee ifany to be computed in accordance with the provisions of section200A(1)(e). It is the claim of the petitioner that till 01.06.2015petitioner cannot be mulcted with any liability to pay late fee for nonfiling of any statement of tax deduction at source. 4. I have heard Smt.S.K.Devi, learned counsel for thepetitioner, Sri.Christopher Abraham, learned Standing Counsel forthe first respondent as well as Sri.S.Manu, learned Assistant SolicitorGeneral of India for the second 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 questionarose for consideration. After considering the statutory provisionsand the implications of the amendment brought in to the Act, it washeld that the amendment would take effect only with effect 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 in Ext.P1 for the period W.P.(C) No.24533/21 -:4:- from 2011-12 to 2015-16 is bereft of authority and cannot be legally sustainable. 7. Accordingly, I quash Ext.P1 notice to the extent it demands fee under section 234E for the period from 2011-12 till 01.06.2015. The writ petition is therefore allowed as above. Sd/- vps BECHU KURIAN THOMAS JUDGE W.P.(C) No.24533/21 -:5:- APPENDIX OF WP(C) 24533/2021 6. In view of the above, the demand in Ext.P1 for the period W.P.(C) No.24533/21 -:4:- from 2011-12 to 2015-16 is bereft of authority and cannot be legally sustainable. 7. Accordingly, I quash Ext.P1 notice to the extent it demands fee under section 234E for the period from 2011-12 till 01.06.2015. The writ petition is therefore allowed as above. Sd/- vps BECHU KURIAN THOMAS JUDGE W.P.(C) No.24533/21 -:5:- APPENDIX OF WP(C) 24533/2021 PETITIONER'S/S' EXHIBITS Exhibit P1TRUECOPYOFTHENOTICEITBA/COM/17/2021-22/1035854594(1) DATED24.09.2021 ISSUED BY THE 1ST RESPONDENT.