2019 (8) TMI 617

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....he financial years 2012-13 & 2013-14. 3. The petitioner is claiming to be in the business of software development. The petitioner, in the course of its activities, makes payments to professionals, hire charges etc. and in respect of whom, it was required to make TDS as per the Income Tax Act, 1961. In view of the amendment to Section 200A, respondent No.2 processed the quarterly returns filed by the petitioner in respect of the aforesaid assessment years and demanded the late fee under Section 234E of the Act. 4. The learned counsel for the petitioner would submit that Section 234E was introduced with effect from 01.07.2012. However, the mechanism to levy such late fee was introduced by virtue of the amendment to Section 200A with eff....

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....to challenge the validity of section 234E of the Act. In view of the reasons recorded by us herein above, when the amendment made under section 200A of the Act which has come into effect on 1st June, 2015 is held to be having prospective effect, no computation of fee for the demand or the intimation for the fee under section 234E could be made for the TDS deducted for the respective assessment year prior to 1st June, 2015. Hence, the demand notices under section 200A by the respondent-authority for intimation for payment of fee under section 234E can be said as without any authority of law and the same are quashed and set aside to that extent. 25. As such, as recorded earlier, it is on account of the intimation received under secti....

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....onal validity of section 234E of the Act before the Division Bench of this Court shall remain open and shall not be treated as concluded. 27. In view of the aforesaid observations and discussion, the impugned notices under section 200A of the Act for computation and intimation for payment of fee under section 234E as they relate to for the period of the tax deducted prior to 1st June, 2015 are set aside. It is clarified that the present judgment would not be interpreted to mean that even if the payment of the fees under section 234E already made as per demand/intimation under section 200A of the Act for the TDS for the period prior to 1st April, 2015 is permitted to be reopened for claiming refund. The judgment will have p....