Section 234E fee under TDS processing cannot be levied for periods before the enabling amendment took effect

Fee under section 234E could not be levied through processing of TDS statements under section 200A for periods before 01.06.2015, because the enabling clause permitting such collection was inserted only from that date. The Tribunal followed consistent earlier decisions and High Court authority holding the amendment prospective in operation. Accordingly, levy of the fee for quarters processed before 01.06.2015 was unsustainable and was deleted.

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Issues: Whether fee under section 234E could be levied while processing TDS statements under section 200A for periods prior to 01.06.2015.

Analysis: The levy of fee under section 234E, though existing in the statute, depended for its collection through processing under section 200A on the enabling amendment introduced by clause (c) with effect from 01.06.2015. For processing made before that date, section 200A did not contain the authority to charge such fee. The issue was already settled by consistent Tribunal decisions and supported by High Court rulings holding that the amendment was prospective and that no fee under section 234E could be imposed for defaults relating to periods prior to 01.06.2015.

Conclusion: The levy of fee under section 234E for the relevant quarters processed before 01.06.2015 was unsustainable and was deleted in favour of the assessee.

Ratio Decidendi: Fee under section 234E cannot be levied through processing under section 200A for periods prior to the insertion of the enabling provision effective 01.06.2015.

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