The Gujarat Supreme Court instructs CBDT to make an appropriate decision on extending the due date for tax audit reports and income tax returns to January 12th [Read Order]
– – January 9, 2021 at 12:59 p.m.
The Gujarat Supreme Court ordered respondent CBDT to make an appropriate decision on extending the due dates for tax audit reports (TAR) and income tax returns (ITR) to January 12, 2021.
Mr. SN Soparkar, the Senior Counsel of the written applicant, Gujarat Federation of Tax Consultants In light of the COVID-19 pandemic, the CBDT felt it appropriate to extend the due date for filing the tax audit report from September 30, 2020 to October 31, 2020, when all auditors are required to get their accounts audited.
Mr Soparkar asked the Court to issue a mandamus letter to the Union of India, the Treasury Department, requesting the CBDT to exercise the powers conferred on it under Section 119 of the Income Tax Act 1961 by extending the due date to October 31 2020 for at least three months, i.e. by January 31, 2021 to submit both ITR and tax audit reports for appraisers whose accounts need to be audited.
Mr Soparkar said that in line with the reality of the pandemic and due to the central government’s Ministry of Interior’s workplace regulations and guidelines on “work for home”, “staggering work / business hours” and “workforce reduction” it is impossible The tax consultants must complete the examination work in order to issue a certificate required under Section 44AB within the extended due date of October 30, 2020.
It is alleged that, based on data published by Respondent # 2, up to 55% of income tax returns and audit reports were filed outside of office hours for 2019, showing the sheer workload for tax advisors working overtime to complete the task .
It is therefore asserted that such work will not be possible in 2020 with Covid infections and safety measures. Mr Soparkar would argue that the Ministry of Law and Justice has indeed recognized the reality of the situation and extended the mass deadlines (unless otherwise specified) of the established laws to March 31, 2021, which ran from March 30, 2020 to March 31, 2021 March 2021, December 31, 2020 vide the law on taxes and other laws (relaxation and amendment of certain provisions), 2020.
The Bank Department of Justice JBPardiwala and Justice Ilesh J. Vora said that the polled authority must take into account that the powers conferred on the CBDT are beneficial to be exercised for proper administration of tax law so as not to cause undue hardship on taxpayers . The aim is fair, orderly and efficient management of evaluation work and the public interest.
“Another aspect must be considered before an appropriate decision is made that the period for the tax authorities has been extended to March 31, 2021, taking into account the current situation of the Covid19 pandemic. If so, an extension deserves a legally compliant examination. Let an appropriate decision be made by January 12, 2021, “the court said.
The court put the matter up for the next hearing on January 13, 2021, so Mr. Patel, the Senior Standing Counsel appearing for the respondents, will inform the court of any decision or development on the matter.
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