Fwd: Stay Order for 2 Months has been granted by High Court of Kerala for the writ petition filled against section 234E of Income Tax Act

 

Stay Order for 2 Months has been granted by High Court of Kerala for the writ petition filled against section 234E of Income Tax Act, 1961 by the petitioner on the ground of illegal and unconstitutional. Copy of the Interm Order dated 18/12/2013 has been attached hereby

  

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 has taken notice for all the respondents in the writ petition. 

Source

 

http://sivarajassociates.blogspot.in/2013/12/section-234-of-income-tax-act-legality.html