Late filing fee under TDS processing upheld where the default arose after the enabling amendment became operative.

Late filing fee under section 234E, levied while processing a TDS statement under section 200A, was held sustainable for a default relating to the third quarter of FY 2015-16. The relevant precedents cited by the assessee concerned periods before 01.06.2015, when the enabling provision in section 200A(1)(c) was not operative; here, the default arose after that date, so the statutory regime permitting the levy applied. The levy was therefore upheld, and no infirmity was found in the first appellate authority's confirmation of the demand.

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Issues: Whether the late filing fee levied under section 234E of the Income-tax Act, 1961, while processing the TDS statement under section 200A of the Income-tax Act, 1961, was sustainable for a default relating to the third quarter of financial year 2015-16, and whether the order of the first appellate authority confirming the levy called for interference.

Analysis: The record showed that the impugned order purportedly under section 272A(2)(k) was not in existence, but the revenue established from the intimation and correction statement that a late filing fee of Rs. 85,200 was in fact levied for the relevant quarter. The precedents relied upon by the assessee concerned periods prior to 01.06.2015, when the enabling provision in section 200A(1)(c) had not come into force. The default in the present case related to a period after 01.06.2015, so the levy fell within the operative statutory regime.

Conclusion: The late filing fee under section 234E read with section 200A of the Income-tax Act, 1961, was upheld and no infirmity was found in the order confirming the levy.

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