2021 (3) TMI 408

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....der section 234E of the Act, for delay in furnishing the tax deducted at source statement. 2. The Ld.AR submitted that there was various issues that assessee had to face thereby causing financial distress. Assessee therefore delayed in clearing the dues. It was submitted that assessee was not having sufficient income to sustain its business during the relevant period due to cash crisis. It has been submitted that section 200A was amended incorporating levy of fee under section 234E in clause ( c) read with section 200 A (1) of the Act vide Finance Act No.2, 2015 ,w.e.f. 01/06/2015. It was submitted that, the relevant assessment years are prior to the date of amendment in section 234E of the Act read with section 200A(1) is not applicable....

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....f fees under Section 234E for the period prior to 1.6.2015. As such, it is on account of the intimation given making demand of the fees in purported exercise of power under Section 200A, the same has necessitated the appellant-original petitioner to challenge the validity of Section 234E of the Act. In view of the reasons recorded by us hereinabove, when the amendment made under Section 200A of the Act which has come into effect on 1.6.2015 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 1.6.2015. Hence, the demand notices under Stion200A by the respondent-authority for intimation for ....

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.... the Act. 26. Under these circumstances, we find that no further discussion would be required for examining the constitutional validity of Section 234E of the Act. Save and except to observe that the question of constitutional 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 1. 6.2015 are set aside. It is clarified that the present judgment would not be interpreted to mean that even if the payment of the ....