RASHMIKANT KUNDALIA Vs. UNION OF INDIA

JUDGEMENT

(1.) Rule. Respondents through their respective counsel waive service. By consent of parties, rule made returnable forthwith and heard finally.

(2.) By this Writ Petition filed under Article 226 of the Constitution of India, the Petitioners have challenged the constitutional validity 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. Consequently, the Petitioners have also sought a declaration that the notices issued to Petitioner Nos.2 and 3 under section 200A of the Act are null, void and bad-in-law being ultra vires the Constitution of India.

(3.) It is stated in the Petition that 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.