Section 234E late fee cannot be levied through TDS processing under section 200A for earlier periods.

Late fee under section 234E could not be computed or demanded while processing TDS statements under section 200A for periods before section 200A(1)(c) came into force on 01.06.2015. Although section 234E created the substantive liability for delayed filing, the processing mechanism authorising computation and levy at the section 200A stage was introduced only prospectively, so it could not be applied retrospectively in the absence of express enabling provision. The levy for the relevant earlier periods was therefore invalid.

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Issues: Whether late fee under section 234E could be levied while processing TDS statements under section 200A for periods prior to the insertion of section 200A(1)(c).

Analysis: Section 234E created the liability to pay fee for delayed furnishing of TDS statements, but the mechanism for computing and levying that fee at the stage of processing under section 200A was introduced only when section 200A(1)(c) came into force on 01.06.2015. For the relevant assessment years, the processing provision did not authorise the Department to compute or demand the late fee under section 234E. The levy could not be given retrospective operation in the absence of an express enabling provision.

Conclusion: The levy of late fee while processing the TDS statements for the relevant earlier periods was unsustainable and is held to be invalid.

Ratio Decidendi: A fee under section 234E cannot be imposed at the processing stage under section 200A for periods prior to the insertion of section 200A(1)(c), because the enabling mechanism for such computation operates prospectively.

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