1^st June, 2015 was marked as effective date of amendments. With the coming of such amendments, issues relating to its clarity have also begun. We have already listed out the highlights of these amendments in our article; mark the important amendments effective from 1^st June.    Amendment related to levy of late fee U/s 234E was to levy such late fees by Income Tax Department under Section 200A. Up to 31^st March, 2015 Income tax department has no power to process TDS return U/s 200A to levy TDS late fee U/s 234E. However from 1^st June, Rs. 200 per day shall be levied on delayed filing of TDS return by the Department. As per this amendment, if any late fee is levied before 1^st June, 2015 appeal can be filed for this or rectification application U/s 154 can be filed to get it cancelled. Till date if due to mistake any late fee U/s 234E is paid then refund will be granted of such excess late fee. In this regard, the Hon’ble Amritsar bench has given a landmark judgment in Sibia Healthcare Private Limited vs. Deputy Commissioner of Income Tax. The material facts of the said case are enumerated below: There was admittedly a delay in filing of the TDS returns and during the processing of the TDS return, the Assessing Officer (TDS) raised a demand, by way of an intimation dated 9th September, 2013 issued under section 200A of the Act, for levy of fees under section 234 E for delayed filing of TDS statement. On this, assessee appealed to CIT (A). Aggrieved by the order of CIT (A), assessee appealed to the Tribunal. Held: The Tribunal viewed that the issue in the said case was whether fees under section 234 E of the Income Tax Act for defaults in furnishing TDS statements shall be levied in intimation under section 200A of the Act. Prior to amendment, there was no enabling provision therein for raising a demand in respect of levy of fees under section 234E. Section 200A permitted computation of amount recoverable from, or payable to, the tax deductor after making the following adjustments: (a)     After making adjustment on account of “arithmetical errors” and “incorrect claims apparent from any information in the statement” (b)   After making adjustment for ‘interest, if any, computed on the basis of sums deductible as computed in the statement”. Thus, the issue after amendment was whether 234E levy could be affected in the course of intimation under section 200A even before June 2015. Considering the issue, tribunal highlighted that no other provision enabling a demand in respect of this levy has been pointed out thus, in the absence of the enabling provision under section 200A; no such levy could be affected before 1^st June, 2015. Hence, as intimation under section 200A, raising a demand or directing a refund to the tax deductor, shall be passed within one year from the end of the financial year within which the related TDS statement is filed. In the present case, TDS statement was filed on 19th February 2014 such a levy could only have been made within 31st March 2015 and as the time limit has elapsed and the defect is thus not curable even at this stage. Tribunal upheld the grievance of the assessee and deletes the impugned levy of fee under section 234E of the Act. Hence, concluded that the impugned levy of fees under section 234E is unsustainable in law. No late fees u/s 234E to be levied before June 2015 during proceeding under section 200A. After coming of the judgment in above case, it is clear that from 1^st June, 2015 in the course of processing of a TDS statement and issuance of intimation under section 200A, an adjustment could also be made in respect of the fees under section 234E. For any cases before June, 2015 no such levy shall be applicable during intimation under section 200A. Thus, relief has been provided to all cases where before amendment, 234 E was levied during proceeding under section 200A. _______________________________________________________________