Prospective amendment to TDS processing law bars late fee demands for periods before 01.06.2015.

Section 200A did not authorise computation of fee under Section 234E at the stage of processing TDS statements before 01.06.2015; that power was inserted only by clause (c) with effect from that date. The statutory circular confirmed that, prior to the amendment, the provision allowed only specified arithmetical and prima facie adjustments and did not permit levy of the late filing fee through processing under Section 200A. As the amendment was expressly made operative from 01.06.2015 and no retrospective language was used, it applies prospectively. Late fee demands raised for periods before 01.06.2015 were therefore unsustainable.

---

---

Issues: Whether the amendment to Section 200A of the Income-tax Act, 1961 inserting clause (c) with effect from 01.06.2015, enabling computation of fee under Section 234E at the time of processing TDS statements, operated prospectively or retrospectively, and whether late fee demands raised for periods prior to 01.06.2015 were sustainable.

Analysis: Section 200A, as it stood before 01.06.2015, provided only for processing of TDS statements by making specified arithmetical and prima facie adjustments and for determining the sum payable or refundable. The subsequent insertion of clause (c) expressly enabled computation of fee, if any, in accordance with Section 234E. The statutory circular explaining the amendment clarified that, before this change, the existing provision did not empower determination of fee under Section 234E at the stage of processing TDS statements, and that the amendment was to take effect from 01.06.2015. In view of this express legislative change and administrative clarification, the amendment could not be treated as retrospective.

Conclusion: The amendment to Section 200A was prospective, and the demands for late filing fee raised for periods prior to 01.06.2015 were not sustainable.

Ratio Decidendi: Where the statute expressly confers the power to compute a fee at the processing stage only from a specified date, that power cannot be applied to earlier periods in the absence of retrospective language.

---