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The Gujarat High Court while hearing a writ petition filed by The All Gujarat Federation of Tax Consultants directed the Central Board of Direct Taxation (CBDT) to take necessary decision by 12th January for the extension of filing of Income Tax Returns (ITR) and Tax Audit Reports (TAR).
The High Court stated that the powers exercised by the CBDT are beneficial in nature and therefore, it should exercise it for the proper administration of fiscal law so that undue hardships are not caused to the taxpayers. The Government had already extended the dates of filing tax returns after analyzing the pandemic.
The Petitioner, The All Gujarat Federation of Tax Consultants filed a writ petition under Article 226 of the Constitution of India, where it prayed for the following relief:
- To direct respondent No.2 to not make any alternations in Forms and Utilities or changes in tax compliance requirements, after the beginning of the Assessment year in which the same are made applicable. Also, to provide the taxpayers a period of 183 days and the tax practitioners a period of 214 days to prepare and submit the due reports and forms.
- To direct the respondents to extend the due date for filing the Income Tax Returns and Tax Audit Reports for Annual Year 2020-21 to 31.01.2021.
- Any other relief and for the cost of the petition.
The CBDT had already extended the deadlines for filings of returns under the Income Tax Act to 10th January. The petitioners stated that due to the pandemic condition and work from home rules, it was dreadful for the Tax Practitioners to complete the work to issue a certificate under Section 44AB of the Act within 30th October 2020.
The respondents argued that the time limit for filing the Tax Audit Reports is extended to 15th January and for filing of the Income Tax Returns the date is extended to 15th February after considering the Covid pandemic.
The respondents stated that these taxes collected in the times of pandemic help the government to take care of the relief work for the poor and other health facilities.
The matter was posted for the next hearing on 13th January. The High Court has asked for a reply on 12th January.
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