HC allows filing of ITR in Paper form till disposal of appeal challenging Rule 12

City And Industrial Development Corporation of Maharashtra Limited Vs ACIT (Bombay High Court)

In this case Bombay HC permitted the Petitioner to file paper return for the assessment year 2020-21 before 31st May, 2021 subject to the further orders that may be passed by this court at the stage of admission or thereafter till this writ petition is finally decided.

1. The Petitioner, at this stage, seeks ad-interim relief in terms of prayer clause (d) by which the Petitioner, inter-alia, seeks permission to allow the Petitioner to file the return of income in paper form for the assessment year 2020-2021 and to treat the same as valid, subject to the final disposal of the petition and seeks further permission to file the return of income in electronic form as soon as the account of the Petitioner are audited and to treat the same as filed in accordance with law before 31st May, 2021 subject to the final disposal of the petition.

2. Petitioner alleging that Rule 12 of the Income Tax Rules, 1962 is ultravires the provisions of the Income Tax Act, 1961 and Constitution of India and as such has no legal effect. The Petitioner is thus not liable to file electronic return of income tax. The Petitioner has recorded various reasons in the petition expressing its inability to file electronic return of the income tax within the time specified by the Respondents

Held :

1. The Petitioner is permitted to file paper return for the assessment year 2020-21 before 31st May, 2021 subject to the further orders that may be passed by this court at the stage of admission or thereafter till this writ petition is finally decided.

2. All contentions of the parties are kept open.

3. It is made clear that whether such paper return proposed to be filed by the Petitioner is incompliance with the Income Tax Act or Rules or not is also kept open.

4. Place this writ petition on Board for admission alongwith the writ petition No. 12 of 2021 (writ petition (st) no. 929 of 2020) on 28th June, 2021 before the regular court.

FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT

1. Heard the learned counsel appearing for the parties.

2. The Petitioner, at this stage, seeks ad-interim relief in terms of prayer clause (d) by which the Petitioner, inter-alia, seeks permission to allow the Petitioner to fle the return of income in paper form for the assessment year 2020-2021 and to treat the same as valid, subject to the final disposal of the petition and seeks further permission to file the return of income in electronic form as soon as the account of the Petitioner are audited and to treat the same as filed in accordance with law before 31^st May, 2021 subject to the final disposal of the petition.

3. Mr. Mistri, learned senior counsel appearing for the Petitioner invited our attention to the order dated 29^th July, 2020 passed by this court in writ petition (st.) no. 929 of 2020 filed by the Petitioner herein against the Assistant Commissioner of Income Tax, Central Circle 15(1)(1), Mumbai & Ors., granting permission to the Petitioner to file the paper return for the assessment year 2019-20 before 31^st July, 2020, subject to further orders that may be passed by this Court at the stage of admission of the said writ petition, keeping all contentions of both the parties open. He submits that the Respondents have not impugned the said order passed by this Court. Pursuant to the said order, the Petitioner has already filed the paper return for the assessment year 2019-20 with the Respondents.

4. It is the case of the Petitioner that Rule 12 of the Income Tax Rules, 1962 is ultravires the provisions of the Income Tax Act, 1961 and Constitution of India and as such has no legal effect. The Petitioner is thus not liable to file electronic return of income tax. The Petitioner has recorded various reasons in the petition expressing its inability to file electronic return of the income tax within the time specified by the Respondents.

5. The Petition is vehemently opposed by the learned counsel for the Revenue on various grounds.

6. Issue notice to the Attorney General insofar as prayer clause (a) is concerned.

7. At this stage, we are not inclined to go into the issue whether the Petitioner is justified in not filing electronic return of the income tax, for the reasons recorded in the body of the petition or not. This issue can be decided by this court at the stage of admission of the writ petition or thereafter. On similar averments, this Court has already permitted the Petitioner to file paper return for the assessment year 2019-20 subject to the further orders that may be passed by this Court at the stage of admission of the said writ petition (st.) no. 929 of 2020. Keeping all such contentions of the parties open, we are also inclined to pass similar order in this petition.

8. We accordingly pass the following order :