Kerala HC quashes Demand of Late Fee payment u/s 234 E of Income Tax Act Citing Bereft of Jurisdiction

The Kerala High Court has quashed a demand for late fee payment under Section 234E of the Income Tax Act, citing a lack of jurisdiction. Section 234E pertains to the levy of fees for defaults in furnishing certain returns, such as Tax Deducted at Source (TDS) returns. The High Court's ruling implies that the specific authority or the manner in which the late fee was demanded was not in accordance with the provisions of the Income Tax Act, thus rendering the demand without legal basis. This decision provides relief to the assessee and underscores the importance of tax authorities adhering strictly to the jurisdictional requirements and procedures laid down in the tax laws when raising demands for fees or penalties.