Saturday, July 31, 2021

Gujarat HC refuses to extend income tax return filing deadline

Gujarat Excessive Courtroom has dismissed a writ petition by tax consultants in search of extension in deadline for submitting earnings tax returns and tax audit reviews. In its order on Thursday, the court docket famous that the Central Board of Direct Taxes has seemed on the matter intently and the court docket can’t order it to increase the time restrict contemplating the impact it is going to have on income assortment. It additional noticed that CBDT can supply some leeway concerning penalties of delay in submitting tax audit reviews.

The Gujarat Excessive Courtroom was listening to writ petitions filed by a physique of tax consultants in search of the court docket’s course to tax division to increase the timeline for submitting tax returns. The petitioners had argued that the coronavirus pandemic had delayed tax returns submitting as a result of disruption in availability of the workers, staff, working hours, consumer conferences and audit work.

The petitioners had said that taxpayers and tax professionals are dealing with hardships as a result of such disruptions in ending audit assignments and gathering the requisite particulars to file the earnings tax returns and tax audit reviews. The petitioners additionally identified that “not lower than 18 organisations (together with the Institute of Chartered Accountants of India) have made representations for this function”.

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Following the illustration by tax consultants, the court docket had requested Central Board of Direct Taxes (CBDT) to look into the matter. In its response, the direct tax authority had famous that the due dates for submitting of return and tax audit have already been prolonged on 3 events.

“Internationally, the extension supplied by India is extra beneficiant as in comparison with different nations. The return submitting statistics of the present 12 months signifies that returns filed on this monetary 12 months already far exceeds the returns filed which had been due on the final date of submitting of returns,” CBDT had mentioned in its response dated January 11, 2021.

“Any additional extension would adversely have an effect on the return submitting self-discipline and shall additionally trigger injustice to those that have taken pains to file the return earlier than the due date. It will additionally postpone the gathering of income, thereby hampering the efforts of the Authorities to supply reduction to the poor throughout these COVID instances,” the tax authority had added.

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Following the response, the excessive court docket said, “Within the total view of the matter, we have now reached to the conclusion that we should always not intrude within the matter.”

The court docket judged that it can’t subject a writ of mandamus to CBDT to increase the time restrict for submitting returns “on the idea that undue hardship can be brought on to the taxpayers and the tax professionals, extra notably, in view of the newest knowledge put ahead earlier than us by the Income”.

“Within the outcome, each the writ functions fail and are hereby rejected. At this stage, we could solely observe that the CBDT could take into account issuing an applicable round taking a lenient view as regards the results of late submitting of the Tax Audit Experiences as supplied underneath Part 271B of the Act. We depart it to the higher discretion of the CBDT on this regard,” the court docket additional mentioned.

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