We would like to share a Judgement regarding Fine for Late filing of TDS Return u/s. 234E ofBombay High Court which is recently issued in the case Rashmikant Kundalia Vs. UOI, WritPetition No. 771 of 2014. In this wirt Petition, Petitioners have challenged the constitutionalvalidity of section 234E of the Income Tax Act, 1961. Section 234E seeks to levy a fee of Rs.200/- per day (subject to certain other conditions as set out therein) inter alia on a person who deducts Tax at Source (TDS) and then fails to deliver or cause to be delivered the TDS return/statements to the authorities within the prescribed period.
Petitioner No.1 is a practising Chartered Accountant who has received several notices under section 200A of the Act that were served by the Revenue on his various clients. According to the Petitioners, section 234E is ultra vires and violative of Article 14 of the Constitution of India and therefore deserves to be struck down by this Court. Consequently, even the notices issued by the Revenue ought to be set aside.
Download Judgment Copy of Bombay High Court.
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