Prospective levy of section 234E late fee barred for TDS statements filed before the section 200A machinery took effect.

Late fee under section 234E for TDS statements filed before 01.06.2015 was held to be unenforceable through the processing mechanism under section 200A(1), because the power to compute and levy such fee through that machinery was inserted only from that date. The levy was therefore treated as prospective in operation for earlier filing periods, and the fee demanded for the relevant pre-01.06.2015 statements was 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 for TDS statements filed before 01.06.2015.

Analysis: Section 234E created the levy, but the power to compute and impose such fee through the processing mechanism under section 200A(1) was inserted only from 01.06.2015. For TDS statements pertaining to earlier financial years and filed before that date, the levy was held to operate only prospectively. The order relied on the settled position that no late fee could be charged for periods prior to the effective date of the enabling machinery provision.

Conclusion: The levy of late fee under section 234E for the relevant TDS statements filed before 01.06.2015 was invalid and was directed to be deleted, in favour of the assessee.

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