NITIN KUMAR SARAF Vs. UNION OF INDIA

JUDGEMENT

(1.) RULE .

(2.) COUNSELS appearing for the respondents waive notice of Rule.

(3.) COUNSELS appearing for the petitioners submitted that vires of Section 234E of the Income Tax Act, 1961 is under challenge in these writ petitions. The matters have been argued, at length, by the counsels for the petitioners and it has been submitted that Section 234E as well as Section 271H have been incorporated by way of Finance Act, 2012 in the Income Tax Act, 1961. There is a provision under Section 271H regarding penalty for not furnishing the statement for the Tax deductible or receivable, the minimum penalty is Rs. 10,000/ - and the maximum is Rs. 1 lakh. For the very same reason one more section has been introduced w.e.f. 1st July, 2012 i.e. Section 234E whereby, the respondents are entitled to levy the fee at the rate of Rs. 200 per day for late filing of the statement of TDS or tax collected. Counsels for the petitioners have submitted that prior to introduction of section 234E, there was a Section 272A which was regarding penalty for failure to answer questions, sign statements, furnish information, returns or statements, allow inspections etc. Looking to Sub -section (2) of Section 272A specially clause 'k' thereof, there was already a provision prior to 1st July, 2012 for imposing penalty of Rs. 100 per day, if any, person fails to deliver or cause to be delivered a copy of statement within the time specified under Section 200(3) or in the proviso to Sub -section (3) of Section 206C. This provision of penalty is converted into 234E and now instead of penalty the word "Fee" has been incorporated and Section 271H has also been introduced for penalty. Thus, for non -filing of the statement of TDS or tax collected, there can be a penalty under Section 271H as quantified minimum and maximum under Sub -section (2) thereof and for the very same purpose or for the very same default, fee is also made leviable under Section 234E.