Wednesday, December 18, 2013

Section 234E of the Income Tax Act- Legality and Validity challenged in the High Court of Kerala

The legality and validity of section 234 E of the Income Tax Act, 1961 inserted by the Finance Act, 2012 making a person liable to pay, by way of fee, a sum of Rs 200/-for each day's delay in filing the statement of Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) is challenged in the High Court of Kerala. The levy in the nature of 'fee' has been challenged as illegal, arbitrary, unreasonable, invalid and unconstitutional, in a writ petition filed by a Lower Primary School in Kannur.
The Honourable High Court has admitted the writ petition and has stayed all the proceedings initiated against the petitioner under section 234E of the Income Tax Act for a period of two months. The standing counsel for the Income Tax department took notice for all the respondents in the writ petition. 
The copy of the interim order passed by the Honourable High Court in the above matter is given below:
Vide order dated 14-2-2014, the Honourable Court extended the interim order by further 6 weeks. Thereafter on 27th March 2014, the stay has been further extended by 2 months. The copy of the interim order dated 27th March 2014 is given below:


arunrajs@justice.com

9 comments:

Rushabh Shah said...

Can you pls upload a visible copy of the interim order.. This appears to be blurrred

Sivaraj Associates said...

Kindly click on it and zoom the page for a better view.

Neljo Davis said...

Sir,
What's the current status of the stay order. Stay order was for 2 months and the same is over by 18th February.

bharathi sridhar said...

Till date (May 2014) nearly 4 High Courts have stayed the proceedings of Section 234E, who have challenged on the basis of the consitutional validity of penalising provisions. Whether all assessees can take advantage of the stay by High Courts or each assessee has to rake individual stay

bharathi sridhar said...

On a different topic: whather any one can give any decision regarding Section 201(1A) penalty/ interest for not deducting the tax at source and considered by the ITO that the assessee is not in default u/s 201(1)and in respect of Govt.institutions/organisations...

Amit Agrawal said...

sir

The matter was last listed on 30th may 2014 now what the status will it again extended and if yes then upto when it will extended

jbd said...

Sir, what time has the matter been adjourned? Kinldy update.

jbd said...

Sir, Date of adjournement plz..

tasif haq said...

Sir
Has the intrim injunction been vacated or has it been further adjourned.