Section 234E late fee could not be levied through TDS processing under section 200A for pre-01.06.2015 periods.

Late fee under section 234E was held not to be leviable while processing quarterly TDS statements under section 200A for periods before 01.06.2015, because section 234E created the substantive liability but section 200A(1)(c) was the enabling provision for computation at processing stage and operated only from that date. For pre-01.06.2015 periods, the processing mechanism did not authorise levy of the fee through section 200A, so the levy was directed to be deleted in favour of the assessee.

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Issues: Whether late fee under section 234E of the Income-tax Act, 1961 could be levied while processing quarterly TDS statements under section 200A of the Income-tax Act, 1961 for periods prior to 01.06.2015.

Analysis: The Tribunal followed the jurisdictional High Court and coordinate bench decisions holding that section 234E created the substantive liability, but section 200A(1)(c) was the enabling provision for computing such fee at the time of processing TDS statements and came into force only from 01.06.2015. For assessment years preceding that date, the processing mechanism did not permit levy of the late fee under section 234E through section 200A.

Conclusion: The late fee could not be levied for the relevant pre-01.06.2015 periods, and the levy was directed to be deleted, in favour of the assessee.

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