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 FRIDAY, THE 17 DAY OF DECEMBER 2021/26TH AGRAHAYANA, 1943 WP(C) NO. 29254 OF 2021 PETITIONER: SMEARA ENTERPRISES SHOP NO.4, BAY PRIDE MALL, SHANMUGHAM ROAD, KOCHI - 682 031 (REPRESENTED BY SMT.MINI ASHRAFF, MANAGING PARTNER). BY ADVS.SRI.K.N.SREEKUMARANSRI.N.SANTHOSHKUMARSRI.N.JAYAKUMAR SRI.P.J.ANILKUMAR (A-1768) RESPONDENTS: 1INCOME TAX OFFICER (TDS)ERNAKULAM - 682 018. AAYKAR BHAVAN, I.S.PRESS ROAD, 2DEPUTY COMMISSIONER OF INCOME TAX TDS CPC, AAYKAR BHAVAN, SECTOR -3, VAISHALI, GAZIABAD, UTTARPRADESH - 201 010. 3COMMISSIONER OF INCOME TAX (APPEALS)NATIONAL FACELESS APPEAL CENTRE, NEW DELHI - 110 003.NATIONAL FACELESS APPEAL CENTRE, NEW DELHI - 110 003. 4CENTRAL BOARD OF DIRECT TAXES NORTH BLOCK, NEW DELHI - 110 002, REPRESENTED BY ITS CHAIRMAN. 5THE UNION OF INDIA MINISTRY OF FINANCE, DIRECT TAXES DEPARTMENT, -:2:- NEW DELHI - 110 001, REPRESENTED BY ITS SECRETARY. BY SRI.CHRISTOPHER ABRAHAM, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FORADMISSION ON 17.12.2021, THE COURT ON THE SAME DAYDELIVERED THE FOLLOWING: BECHU KURIAN THOMAS, J. ----------------------------------------- W.P.(C) No.29254 of 2021 ---------------------------------------- Dated this the 17[th] day of December, 2021 JUDGMENT By Ext.P1 to Ext.P13 intimations, 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 intimations, amounts have been demanded as late fee for the periods from 2012-13 to 2014-15 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 theAct. Section 200A(1) incorporated clause (c) to clause (f) with effect W.P.(C) No.29254/21 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 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 Sri.K.N.Sreekumaran, learned counsel for the petitioner, Sri.Christopher Abraham, learned Standing Counsel forthe respondents 1 to 4 as well as Sri.S.Manu, learned AssistantSolicitor General of India for the fifth 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 to Ext.P13intimations for the period from 2012-13 to 2014-15 is bereft of W.P.(C) No.29254/21 authority and cannot be legally sustainable. 7. Accordingly, I quash Ext.P1 to Ext.P13 intimations to theextent it demands late fee under section 234E for the period from 2011-12 till 01.06.2015. 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 to Ext.P13intimations for the period from 2012-13 to 2014-15 is bereft of W.P.(C) No.29254/21 authority and cannot be legally sustainable. 7. Accordingly, I quash Ext.P1 to Ext.P13 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. Sd/- vps BECHU KURIAN THOMAS JUDGE APPENDIX OF WP(C) 29254/2021 PETITIONER'S/S' EXHIBITS EXHIBIT P1TRUE COPY OF THE INTIMATION OF LEVY U/S.234E, AGAINST 26Q OF Q2 FOR F.Y.2012-13ISSUED BY THE 2ND RESPONDENT TO THEPETITIONER.234E, AGAINST 26Q OF Q2 FOR F.Y.2012-13ISSUED BY THE 2ND RESPONDENT TO THEPETITIONER. EXHIBIT P2TRUE COPY OF THE INTIMATION OF LEVY U/S.234E, AGAINST 26Q OF A3 FOR F.Y. 2012-13ISSUED BY THE 2ND RESPONDENT TO THEPETITIONER.234E, AGAINST 26Q OF A3 FOR F.Y. 2012-13ISSUED BY THE 2ND RESPONDENT TO THEPETITIONER. EXHIBIT P3TRUE COPY OF THE INTIMATION OF LEVY U/S.234E, AGAINST 26Q OF Q4 FOR F.Y.2012-13ISSUED BY THE 2ND RESPONDENT TO THEPETITIONER.234E, AGAINST 26Q OF Q4 FOR F.Y.2012-13ISSUED BY THE 2ND RESPONDENT TO THEPETITIONER. EXHIBIT P4TRUE COPY OF THE INTIMATION OF LEVY U/S.234E, AGAINST 26Q OF Q1 FOR 2013-14ISSUED BY THE 2ND RESPONDENT TO THEPETITIONER.234E, AGAINST 26Q OF Q1 FOR 2013-14ISSUED BY THE 2ND RESPONDENT TO THEPETITIONER. EXHIBIT P5TRUE COPY OF THE ORDER INTIMATION U/S.234E, AGAINST 26Q OF Q2 FOR 2013-14ISSUED BY THE 2ND RESPONDENT TO THEPETITIONER.234E, AGAINST 26Q OF Q2 FOR 2013-14ISSUED BY THE 2ND RESPONDENT TO THEPETITIONER. EXHIBIT P6TRUE COPY OF THE ORDER INTIMATION U/S.234E, AGAINST 26Q OF Q3 FOR 2013-14ISSUED BY THE 2ND RESPONDENT TO THEPETITIONER.234E, AGAINST 26Q OF Q3 FOR 2013-14ISSUED BY THE 2ND RESPONDENT TO THEPETITIONER. EXHIBIT P7TRUE COPY OF THE ORDER INTIMATION U/S.2343, AGAINST 24Q OF Q4 FOR 2013-14ISSUED BY THE 2ND RESPONDENT TO THEPETITIONER.2343, AGAINST 24Q OF Q4 FOR 2013-14ISSUED BY THE 2ND RESPONDENT TO THEPETITIONER. EXHIBIT P8TRUE COPY OF THE ORDER INTIMATIONU/S.234E, AGAINST 26Q OF Q4 FOR 2013-14ISSUED BY THE 2ND RESPONDENT TO THEPETITIONER.U/S.234E, AGAINST 26Q OF Q4 FOR 2013-14ISSUED BY THE 2ND RESPONDENT TO THEPETITIONER. EXHIBIT P9TRUE COPY OF THE ORDER INTIMATIONU/S.234E, AGAINST 26Q OF Q1 FOR 2014-15ISSUED BY THE 2ND RESPONDENT TO THEPETITIONER.U/S.234E, AGAINST 26Q OF Q1 FOR 2014-15ISSUED BY THE 2ND RESPONDENT TO THEPETITIONER. EXHIBIT P10TRUE COPY OF THE ORDER INTIMATION W.P.(C) No.29254/21 -:7:- U/S.234E, AGAINST 26Q OF Q2 FOR 2014-15ISSUED BY THE 2ND RESPONDENT TO THEPETITIONER.ISSUED BY THE 2ND RESPONDENT TO THEPETITIONER. EXHIBIT P11TRUE COPY OF THE ORDER INTIMATIONU/S.234E, AGAINST 26Q OF Q2 FOR 2014-15ISSUED BY THE 2ND RESPONDENT TO THEPETITIONER.U/S.234E, AGAINST 26Q OF Q2 FOR 2014-15ISSUED BY THE 2ND RESPONDENT TO THEPETITIONER. EXHIBIT P12TRUE COPY OF THE ORDER INTIMATIONU/S.234E, AGAINST 26Q OF Q4 FOR 2014-15ISSUED BY THE 2ND RESPONDENT TO THEPETITIONER.U/S.234E, AGAINST 26Q OF Q4 FOR 2014-15ISSUED BY THE 2ND RESPONDENT TO THEPETITIONER. EXHIBIT P13TRUE COPY OF THE ORDER INTIMATIONU/S.234E, AGAINST 24Q OF Q4 FOR 2014-15ISSUED BY THE 2ND RESPONDENT TO THEPETITIONER.U/S.234E, AGAINST 24Q OF Q4 FOR 2014-15ISSUED BY THE 2ND RESPONDENT TO THEPETITIONER. EXHIBIT P11TRUE COPY OF THE ORDER INTIMATIONU/S.234E, AGAINST 26Q OF Q2 FOR 2014-15ISSUED BY THE 2ND RESPONDENT TO THEPETITIONER.U/S.234E, AGAINST 26Q OF Q2 FOR 2014-15ISSUED BY THE 2ND RESPONDENT TO THEPETITIONER. EXHIBIT P12TRUE COPY OF THE ORDER INTIMATIONU/S.234E, AGAINST 26Q OF Q4 FOR 2014-15ISSUED BY THE 2ND RESPONDENT TO THEPETITIONER.U/S.234E, AGAINST 26Q OF Q4 FOR 2014-15ISSUED BY THE 2ND RESPONDENT TO THEPETITIONER. EXHIBIT P13TRUE COPY OF THE ORDER INTIMATIONU/S.234E, AGAINST 24Q OF Q4 FOR 2014-15ISSUED BY THE 2ND RESPONDENT TO THEPETITIONER.U/S.234E, AGAINST 24Q OF Q4 FOR 2014-15ISSUED BY THE 2ND RESPONDENT TO THEPETITIONER. EXHIBIT P14TRUE COPY OF THE INTIMATION LETTER DATED8/5/2017 ISSUED BY THE 1ST RESPONDENT.8/5/2017 ISSUED BY THE 1ST RESPONDENT. EXHIBIT P15TRUE COPY OF THE ORDER DATED 29/11/2021FOR THE ASSESSMENT YEAR 2013-14 ISSUEDBY 3RD RESPONDENT.FOR THE ASSESSMENT YEAR 2013-14 ISSUEDBY 3RD RESPONDENT. EXHIBIT P16TRUE COPY OF THE ORDER DATED 29/11/2021FOR THE ASSESSMENT YEAR 2014-15 ISSUEDBY 3RD RESPONDENT.FOR THE ASSESSMENT YEAR 2014-15 ISSUEDBY 3RD RESPONDENT. EXHIBIT P17TRUE COPY OF THE ORDER DATED 29/11/2021FOR THE ASSESSMENT YEAR 2015-16 ISSUEDBY 3RD RESPONDENT.FOR THE ASSESSMENT YEAR 2015-16 ISSUEDBY 3RD RESPONDENT.