Section 234E fee could not be adjusted in TDS processing for periods before 01.06.2015, absent enabling provision.

Fee under section 234E could not be levied through processing of TDS statements for periods prior to 01.06.2015 because section 200A, as then in force, did not contain the enabling adjustment mechanism. The statutory machinery for such collection was introduced only with effect from 01.06.2015, so intimation under section 200A for the earlier period lacked authority to raise the demand. The fee demand for the pre-amendment period was therefore unsustainable and was deleted in favour of the assessee.

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Issues: Whether fee under section 234E of the Income-tax Act, 1961 could be levied while processing TDS statements for periods prior to 01.06.2015 in the absence of the enabling adjustment provision in section 200A(1)(c).

Analysis: The fee under section 234E is a charge for delay in furnishing TDS statements, but its collection through processing under section 200A depended on the statutory machinery introduced with effect from 01.06.2015. For the relevant earlier period, the processing provisions did not authorise adjustment of such fee, and the issue was treated as covered by existing judicial decisions holding that no demand could be raised through intimation under section 200A for periods before the amendment took effect.

Conclusion: The levy of fee under section 234E for the period prior to 01.06.2015 was not sustainable and was deleted in favour of the assessee.

Ratio Decidendi: In the absence of an enabling provision in section 200A permitting adjustment of fee under section 234E, such fee could not be levied through processing of TDS statements for periods prior to 01.06.2015.

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