The liability to pay a fee for delay in filing the statement of tax deducted at source gets attracted under sub-section (1) of section 234E of the Income-tax Act, 1961 once a person fails to deliver or cause to be delivered a statement within the time prescribed in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C of the Act and the liability shall continue for every day during which the failure continues. Sub-section (4) of section 234E of the Act provides that these provisions would apply to the statement referred to in sub-section (3) of section 200 of the Act which is to be delivered or cause to be delivered on or after July 1, 2012. Section 200A(1)(c) was amended with effect from June 1, 2015. Section 234E of the Act by itself creates a liability and the liability to pay the late fee is not dependent on section 200A(1)(c) of the Act which only prescribes the recovery mechanism and reflects the true intent and purpose of section 234E. Hence late fee under section 234E can be levied for a delay prior to June 1, 2015. (AY.2010-11 to 2015-16)
Conceria International Pvt. Ltd. v. ITO [2023] 157 taxmann.com 335/(2024) 464 ITR 92/ 337 CTR 237 (Mad)(HC)/Editorial : Dundlod Shikshan Sansthan . v. UOI (2016) 284 CTR (Raj) 175 : (2016) 131 DTR 382 (Raj) (HC) and Rajesh Kourani v. UOI nion of In. (2017) 297 CTR 52/ 156 DTR 129(Guj) (Guj) HC ) (2017) concurred with; Fatheraj Singhvi v. UOI (2016) 142 DTR 281 / 289 CTR 602 (Karn)(HC) dissented from.
S.234E: Fee-Default in furnishing the statements-Deduction of tax at source-Delay in filing statement of tax deducted at source-late fee-Position prior to 1-6-2015-Amendment of section200A with effect from 1-6-2015-Late fee could be charged in respect of delay prior to amendment.[S.200A(1)(c), 206C(3), Art. 226]