Section 234E late fee under TDS processing was unsustainable for years before Section 200A became effective.

Section 234E late fee could not be levied through processing of TDS statements under Section 200A for the assessment years in question because the enabling provision under Section 200A was held to have come into force only from 01.06.2015. Following the jurisdictional High Court, the Tribunal treated the issue as no longer res integra and concluded that the adjustment made while processing those statements was not permissible. The levy was therefore set aside 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 TDS statements under Section 200A of the Income-tax Act, 1961 for the assessment years in question.

Analysis: The Tribunal followed the jurisdictional High Court's view that Section 200A of the Income-tax Act, 1961 came into force only with effect from 01.06.2015. For the assessment years under consideration, the processing provision enabling such levy was not in force, and the issue was treated as no longer res integra.

Conclusion: The levy of late fee under Section 234E while processing the TDS statements under Section 200A for the relevant assessment years was held unsustainable and was set aside, in favour of the assessee.

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