• Notification Date: 21-09-2023
  • Notification No: N/A

Levy of Late Fees u/s 234E of Income Tax Act for Filing Delayed Previous TDS Return: Kerala HC Quashes Intimation Order

The Kerala High Court quashed the intimation order issued under the Income Tax Act, 1961 in the matter of levy of late fees under Section 234E of the Income Tax Act, 1961 for filing delayed previous Tax Deducted at Source (TDS) return. The petitioner, Sutheepan Sowmini, is challenging the intimation orders pertaining to levied fees under Section 234E of the Income Tax Act, 1961 for imposing of late fee for filing delayed previous TDS return for the assessment year 2013-2014. 

The limited ground on which this writ petition has been filed is that the demand notices are beyond jurisdictional envisagement. No late fee could be levied for not filing the previous return for the period prior to 01.06.2015. The Counsel for the petitioner also submitted that, in the present case, the period for which the impugned demand notices have been issued is prior to 01.06.2015 in respect of the assessment year 2013-2014. The Counsel for the petitioner has also placed reliance on the grounds of the Judgment of the Kerala High Court in the case of M/s Olari Little Flower Kuries Pvt Ltd. vs. Union of India. 

In the decision of M/s Olari Little Flower Kuries Pvt Ltd. vs. Union of India, the writ petitioner challenged the intimation received under Section 200 A from the respondent/Revenue calling upon the writ petitioner to pay late fee for delayed filing of quarterly statements of TDS and the Kerala High Court observed that “The periods for which the notices are issued are stated as prior to 01.06.2015, the writ petition stands allowed and the intimations dealing with filing of belated statements prior to 01.06.2015 are set aside.” The Court of Justice Dinesh Kumar Singh observed that “I find that the grievance of the petitioner thus covered by the said Judgment of the Division Bench and therefore, the Writ Petition is allowed. Impugned orders in Ext. P1 to Ext.P6 (the intimation orders) are hereby set aside.” 

K.N. Sreekumaran, Counsel appeared for the petitioner and Christopher Abraham, Standing Counsel for appeared for the Income Tax Department.