U/s.234E late fee- balated filing the TDS returns

This query is : Resolved

Quick Summary

Sec 234E fee existed from 2012 but enforceable via 200A only from 01-06-2015; earlier levies are disputable. Without 200A or 156, appeal is difficult; TRACES demand alone may not suffice. Sec 154 applies only to apparent errors, not legal disputes.

T.N.Reddy

T.N.Reddy (Querist)
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08 April 2026 Sir, prior to F.Y. 2015-2016, there were certain demands on account of the above section, which I would like to challange before the first appellate authority as there was no enabling section in the Act to levy late fee U/s.234E till the F.Y. 2015-2016, ie. enabling provion has come in to force from 01-06-2015, but I do not have the Notice u/s.156 or intimation U/s.200A. So, How do I proceed in the absence of the above intimation or notice, kindly advise.

Aashok Kumar Sharma online

Aashok Kumar Sharma online

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08 April 2026 • Sec 234E existed from 2012, but collection mechanism came only from 01-06-2015
• For earlier periods, courts (like Karnataka HC) held levy invalid
• In your case, absence of 200A intimation + 156 notice = strong ground to challenge
• Best approach: File appeal with legal backing (Fatheraj Singhvi case)

T.N.Reddy

T.N.Reddy (Querist)
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09 April 2026 sir, inorder to file the appeal, either I should have 156 notice or 200A intimation, so, both of them are not available with me, however, there are demands in the traces portal on account of 234E which are true. kinldy advise as to how do I source such 156 or 200A ?

T.N.Reddy

T.N.Reddy (Querist)
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10 April 2026 Sir, Anybody can help me out in this regard

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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10 April 2026 For income tax matters, an appeal must generally be filed within 30 days of receiving the relevant document.
Filing Deadlines
From 200A Intimation: You have 30 days from the date on which the intimation is served to you (electronically or physically).
From Section 156 Notice: You have 30 days from the date of service of the Notice of Demand.
If Disputing Rectification (Section 154): If you first applied for a rectification and it was rejected, you can appeal that rejection within 30 days of receiving the rejection order.
As the deadline is over, you cannot file appeal anymore.

T.N.Reddy

T.N.Reddy (Querist)
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11 April 2026 U/s.234E late fee is a legal issue which is to be decided by the higher officer, so, whether does it fit for U/s.154 ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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11 April 2026 Section 154 of the Income Tax Act is designed to rectify mistakes apparent from the record. Whether a late fee under Section 234E fits under Section 154 depends on the nature of your dispute:
When Section 154 is Applicable:
It can be used for arithmetical errors or clear, non-debatable mistakes.
If the late fee calculation is objectively wrong (e.g., incorrect number of delay days used), you can file for rectification u/s 154.
Income Tax Authorities, including the Assessing Officer (TDS), are empowered to amend intimations issued under Section 200A(1) through Section 154.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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11 April 2026 When Section 154 is NOT Applicable:
If the dispute is a legal issue or a "debatable" point of law, it generally does not fall under Section 154.
Courts have ruled that matters requiring extensive verification of facts or legal interpretation are not "mistakes apparent from record".
For example, if you are challenging the legal validity of the fee itself (such as levies for periods prior to June 1, 2015), this is considered a substantive legal question rather than a simple record error.

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