Penalty u/s 234e
This query is : Resolved
10 August 2014
any information about u/s 234E penalty regarding.
10 August 2014
In a recent order dated 03.07.2014 Hon’ble Odisha High Court has granted stay on the recovery of Late fee charged Under Section 234E of the Income Tax Act,1961.
In Separate cases Hon’ble Bombay, Rajashthan, Kerala and Karnataka High Court has already stayed the Recovery Proceeding U/s. 234E of the Income Tax Act,1961 till the final verdict in the case.
You can see the Judgements from below link:
http://taxguru.in/income-tax-case-laws/section-234e-odisha-high-court-stays-recovery-proceeding.html#sthash.aFzu1Zj8.dpuf
In Separate cases Hon’ble Bombay, Rajashthan, Kerala and Karnataka High Court has already stayed the Recovery Proceeding U/s. 234E of the Income Tax Act,1961 till the final verdict in the case.
You can see the Judgements from below link:
http://taxguru.in/income-tax-case-laws/section-234e-odisha-high-court-stays-recovery-proceeding.html#sthash.aFzu1Zj8.dpuf
11 August 2014
I would like to add one point. In Kerala case, teh interim relief granted by the High Court is in relation to specific actions initiated by the jurisdictional TDS officer against the petitioner in the case. No other stay was granted in relation to any other proceedings in any other TDS case in the state. This can be verified from the order itself. (http://taxguru.in/income-tax-case-laws/hc-stays-late-filing-fees-234e-late-filing-tds-return.html)
Same applied to Karnataka case (http://taxguru.in/income-tax-case-laws/karnataka-hc-stayed-enforcement-notices-234e-traces.html)
In Rajasthan case, the same thing happened and the relief was only made available to the petitioners. (http://taxguru.in/wp-content/uploads/2014/04/Om_Prakash_234E_TDS.pdf)
In Mumbai High Court, it is not clear from the stay order whether the stay is on the proceedings against the assessee or for all the cases in the state. However, given that case is under pre-admission stage, it is more likely that proceedings have been stayed only against the petitioner.
So, as long as you are not yourself a petitioner, you have no safeguards.
Same applied to Karnataka case (http://taxguru.in/income-tax-case-laws/karnataka-hc-stayed-enforcement-notices-234e-traces.html)
In Rajasthan case, the same thing happened and the relief was only made available to the petitioners. (http://taxguru.in/wp-content/uploads/2014/04/Om_Prakash_234E_TDS.pdf)
In Mumbai High Court, it is not clear from the stay order whether the stay is on the proceedings against the assessee or for all the cases in the state. However, given that case is under pre-admission stage, it is more likely that proceedings have been stayed only against the petitioner.
So, as long as you are not yourself a petitioner, you have no safeguards.
11 August 2014
Legality and Validity of section 234E has been challenged in above cases. So if the final judgement is in favour of the petitioner then same will hold good for all.
If section 234E held to be Invalid and Illegal then it can not be only for petitioner. It will be applicable for all.
But if that does not happen you will have to pay fees u/s 234E along with interest since you yourself are not a petitioner.
If section 234E held to be Invalid and Illegal then it can not be only for petitioner. It will be applicable for all.
But if that does not happen you will have to pay fees u/s 234E along with interest since you yourself are not a petitioner.
11 August 2014
absolutely...all I said is that stay is only proceedings against the petitioner.
09 February 2015
Mumbai High Court rules - 234E fees constitutionally Valid
Rashmikant Kundalia vs. UOI (Bombay High Court)
S. 234E: The late filing of TDS returns by the deductor causes inconvenience to everyone and s. 234E levies a fee to regularize the said late filing. The fee is not in the guise of a tax nor is it onerous. The levy is constitutionally valid
The late submission of TDS statements means the Department is burdened with extra work which is otherwise not required if the TDS statements were furnished within the prescribed time. This fee is for the payment of the additional burden forced upon the Department. A person deducting the tax (the deductor), is allowed to file his TDS statement beyond the prescribed time provided he pays the fee as prescribed under section 234E of the Act. In other words, the late filing of the TDS return/statements is regularised upon payment of the fee as set out in section 234E. This is nothing but a privilege and a special service to the deductor allowing him to file the TDS return/statements beyond the time prescribed by the Act and/or the Rules. We therefore cannot agree with the argument of the Petitioners that the fee that is sought to be collected under section 234E of the Act is really nothing but a collection in the guise of a tax
Rashmikant Kundalia vs. UOI (Bombay High Court)
S. 234E: The late filing of TDS returns by the deductor causes inconvenience to everyone and s. 234E levies a fee to regularize the said late filing. The fee is not in the guise of a tax nor is it onerous. The levy is constitutionally valid
The late submission of TDS statements means the Department is burdened with extra work which is otherwise not required if the TDS statements were furnished within the prescribed time. This fee is for the payment of the additional burden forced upon the Department. A person deducting the tax (the deductor), is allowed to file his TDS statement beyond the prescribed time provided he pays the fee as prescribed under section 234E of the Act. In other words, the late filing of the TDS return/statements is regularised upon payment of the fee as set out in section 234E. This is nothing but a privilege and a special service to the deductor allowing him to file the TDS return/statements beyond the time prescribed by the Act and/or the Rules. We therefore cannot agree with the argument of the Petitioners that the fee that is sought to be collected under section 234E of the Act is really nothing but a collection in the guise of a tax
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09 February 2015
Not such good news. Full judgment can be seen from link given below:
http://itatonline.org/archives/wp-content/uploads/Rashmikant_Kundalia_234E.pdf
http://itatonline.org/archives/wp-content/uploads/Rashmikant_Kundalia_234E.pdf
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