Dismissing the petition the Court held that S. 234E is not a penalty. Penalty is levied under section 271H and is not automatic. Penalty is levied only when tax deducted at source along with interest fee is not deposited and the statement is not filed within one year. If these two conditions are satisfied, then penalty is not leviable. On the other hand, S. 234E of the Act is only a late fee at the rate of Rs. 200 per day. S.  234E of the Act is purely compensatory and is a special benefit to the advantage of the assessee as well for belatedly filing the tax deducted at source statement. S. 234E is meant to ensure that the assessee files the statement in time, so that the Department can clear the returns of the persons connected with the assessee, i. e., from whom tax has been deducted at source, without any delay and accurately. S. 234E is valid.