Section 234E late fee cannot be levied through Section 200A processing for periods before 01.06.2015.

Late fee under Section 234E could not be levied while processing quarterly TDS returns under Section 200A for periods before 01.06.2015, because the enabling provision for computing that fee was inserted into Section 200A only from that date. For the relevant financial year 2014-15, intimation issued under Section 200A could not sustain the levy in the absence of such authority, so the late fee was held invalid and directed to be deleted.

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Issues: Whether late fee under Section 234E could be levied while processing quarterly TDS returns under Section 200A for the period prior to 01.06.2015.

Analysis: The provision enabling computation of fee under Section 234E during processing of TDS statements was inserted into Section 200A only with effect from 01.06.2015. For the relevant financial year 2014-15, the returns were processed for a period preceding that insertion. In the absence of the enabling clause in Section 200A for the relevant period, the levy of late fee while issuing intimation under Section 200A could not be sustained.

Conclusion: The levy of late fee under Section 234E in the intimation under Section 200A for the relevant period was invalid and was directed to be deleted, in favour of the assessee.

Ratio Decidendi: Late fee under Section 234E cannot be imposed through processing under Section 200A for periods prior to the insertion of the enabling provision with effect from 01.06.2015.

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