Kerala HC: Order Not Liable to Pay Late Fee U/S 234E for Filing Delayed TDS Returns

The Kerala High Court invalidated the intimation order issued under the Income Tax Act, 1961 regarding the imposition of late fees under Section 234E of the Income Tax Act, 1961 for the delayed submission of previous Tax Deducted at Source (TDS) returns.

The petitioner, Sutheepan Sowmini, contested the notice related to the late fees imposed under Section 234E of the Income Tax Act, 1961, specifically for the late filing of previous TDS returns for the assessment year 2013-2014.

The argument in this writ petition is that the demand notices are not within the jurisdiction’s scope. Late fees cannot be imposed for failing to file previous returns for the period before June 1, 2015.

The petitioner’s Counsel also argued that the impugned demand notices have been released concerning a period before June 1, 2015, for the assessment year 2013-2014. The petitioner’s Counsel also referenced the Kerala High Court’s judgment in the case of M/s Olari Little Flower Kuries Pvt Ltd. vs. Union of India to rely on.

In the M/s Olari Little Flower Kuries Pvt Ltd. vs. Union of India decision, the writ petitioner challenged an intimation received under Section 200 A from the Revenue, which demanded late fees for the delayed submission of quarterly TDS statements. The Kerala High Court noted that the notices were relevant to periods before June 1, 2015, and therefore allowed the writ petition, setting aside the intimation concerning the filing of delayed statements before June 1, 2015.

The bench of Justice Dinesh Kumar Singh stated that the petitioner’s concerns align with the aforementioned Division Bench judgment, and thus, the Writ Petition is granted. The challenged orders in Ext. P1 to Ext. P6 (the intimation orders) are hereby nullified.

K.N. Sreekumaran represented the petitioner, and Christopher Abraham served as the Standing Counsel for the Income Tax Department.