Court rules demand for late fees under Income Tax Act unauthorized. Clarifies liability and exempts petitioner pre-01.06.2015.

The court allowed the writ petition, ruling that the demand for late fees for the specified periods under section 234E of the Income Tax Act, 1961 was without authority and legally unsustainable. The court clarified the applicability of section 234E and the impact of the introduction of section 200A(1) in determining liability for late filing fees, holding that the petitioner was not liable to pay late fees for the period preceding 01.06.2015.

---

---

Issues:
1. Late filing fee under section 234E of the Income Tax Act, 1961 demanded for the periods from 2012-13 to 2015-16.
2. Interpretation of section 234E of the Act and its applicability.
3. Effect of the introduction of section 200A(1) with clause (c) to clause (f) from 01.06.2015.
4. Legal validity of the demand for late fees for the mentioned periods.

Analysis:
The petitioner was called upon to pay the late filing fee under section 234E of the Income Tax Act, 1961 for the periods from 2012-13 to 2015-16. Section 234E imposes a fee for default in furnishing statements, with a sum of two hundred rupees for every day during which the failure continues. The petitioner contested the demand, citing the introduction of section 200A(1) with effect from 01.06.2015, which refers to the computation of fees. The petitioner argued that until 01.06.2015, they cannot be held liable to pay late fees for not filing the statement of tax deduction at source.

During the hearing, the petitioner's counsel referred to a previous judgment where a similar question was considered. The court in that case held that the amendment to the Act would be prospective, effective only from 1st June, 2015. Relying on this precedent, the petitioner argued that the demand for late fees for the period until the first quarter of the assessment year 2015-16 lacked authority and was legally unsustainable. The court agreed with the petitioner's argument and quashed the intimations demanding late fees under section 234E for the period from 2011-12 till 01.06.2015.

In conclusion, the court allowed the writ petition, holding that the demand for late fees for the specified periods was without authority and legally unsustainable. The judgment clarified the applicability of section 234E and the effect of the introduction of section 200A(1) in determining the liability for late filing fees under the Income Tax Act, 1961.

---