3CB/3CD E-Filing Utility – Turning Into Harassment of Professionals

CA Sudhir Halakhandi

The xml utility of E-filing of Tax audit report is under process of continuous alterations, amendments, modifications and the last in this series of is introduced on 24th Aug 2013.

Our first question is that why so many amendments, modification, alterations are required in this utility. The answer is very simple because it has so many shortcomings in it. OK, then the standard process in this respect should be “pre-launching test” and one can easily presume by going through the circumstances that this was not done seriously by makers of this utility.

When the utility was first introduced it was changed immediately after getting the feedback from the users and in that case a perfect , the new and revised utility, should be there to satisfy the all the needs of procedural aspect of the law by removing all the shortcomings experienced and reported  by the professionals. But this was not done in this  case. The improvement was not perfect and there are several changes in last month in the utility which is causing the harassment to the professionals.

See, here why we are calling it harassment to the professionals, there are some reasons:-

1. They are not mentioning anywhere on the e-filing site that a  New utility is introduced.

2. They are not mentioning anywhere on the e-filing site that what type of changes have been introduced by replacing the existing utility.

3. The private software manufacturers are taking their own time in making corrections in their software due to sudden and frequent changes.

4. If you have prepared and filled the utility and saved it but before uploading the same a new utility is introduced,  then you have to fill it again because the system is not accepting the Old utility.

See the effect of point No.3, 7 xml utilities were prepared in our office up to 23 rd Aug 2013 but the uploading is pending because it is not finally checked by us but on 24th Aug 2013 the New utility was introduced and while uploading the XML utility  we came to know this fact with a “error message” and now have to prepare and refill all the figures in new utility for all these cases.

Why this is being done –

1. No responsibility is fixed for the persons who prepared the utility for it’s shortcomings.

2.  Nobody is responsible for half hearted corrections.

3. The principal of trial and error is going on for ultimate search of excellence.

4. No pre-launching test is being performed before introduction of utility.

6. There is a feeling at their level that they are the bosses hence there is no respect for the professionals and tax payer public so they have no courtesy to inform them about new introduction and type of changes.

Now the situation is that the system is not perfect and the professionals are facing difficulties in completing the task and it is clear cut case of “Extension of date” and surely they will extend it but as evidenced by their previous  history,   not before harassing the professionals and tax payer public . As per our predictions, they will introduce a date extension at 4 PM on 30th Sept 2013 i.e. on the last date for it.

Now in our opinion the circumstances at present demanding an extension of date for at least 2 months and it should be declared immediately and after this declaration there should be a thorough modification of the utility and introduction of a perfect utility. Still we are testing the new utility but at present we are of the opinion that it is not the final utility and soon they will introduce a new one because still we have notices that :-

1. There is no facility in the utility to view the Form 3CB/3CB and it is not easy to view and check the form in XML.

2. The curser is still “Dancing down” here and there when we put it on a drop down Box creating irritation to the user.

3. The corrected Depreciation utility still has problems and in the Form CD in item No.14 column No.2 does not display the rate of Depreciation and instead of it , it is repeating the figures of column No.1.


-CA Sudhir Halakhandi  -CA Abhas Halakhandi

“Halakhandi”, Laxmi Market, Beawar-305901(Raj)

Cell- 9828067256, MAIL –sudhirhalakhandi@gmail.com

Categories: Income Tax

View Comments (31)

  • further the form 3cd 2 3cb itself is not capable of getting it saved in the usual formate pdf etc for files other than xml.

  • It appears that there is lack of officials of the income tax department and the software developer. We are the ultimate suffers killing our valuable time and facing problems.

  • Grievance sent to Ministry of Finance/Revenue on 25.08.2013

    The recent introduction of online e-filing of Tax Audit other reports, 3CD other Forms, annexures etc., and the nature & volume of particulars to be filled in those poses a big problems to tax payers and also professionals from several angles. The procedures & formalities connected with them are also cumbersome, very difficult & impractical for all especially for those in small towns, non-urban and remote areas.
    The fixing of the responsibility on the Tax Auditor in filling the particulars and the requirement regarding the client to choose the auditor & approve his report etc., and sending all of them to CPC online, to put it mildly, is very odd and time consuming. Moreover, the Auditor cannot express his views, comments and exceptions etc., in many areas particularly in Form 3CD and has to give all particulars as per the format and even if a single detail is not filled up the form cannot be uploaded. The shift of responsibility in providing particulars & information from the management of the entity to the auditor is against the basic principles of Auditing.
    Moreover, tax audit is made applicable to persons with less than rupees one crore Turnover if they do not show a net profit of 8% of the T.O - previously it was 5% on Retail trade alone. The percentage is very unrealistic and near impossible except, perhaps, in cases such as service providers. In other words, many persons more particularly middle class Traders are forced to opt for compulsory tax audit. How it is possible for them to keep accounts, records etc., at such a standard, provide the required particulars, information and also comply with all these cumbersome, very difficult and impractical procedures and also formalities connected with them?
    Also think what the Govt. is going to achieve or benefit by these provisions which cause enormous hardship, practical problems & affect a large number persons belonging to lower middle to middle income category. The most optimistic estimate of revenue from the items that may be derived by the Govt. from the above referred provisions, many infructuous statutory obligations like TDS and other levies such as 'Wealth Tax' (and that too with an exemption of paltry Rs.30 Lakhs) is surely very very meagre.
    If the Revenue authorities feel that something is wrong in a particular case they are empowered to scrutinise the case and examine all the points in depth. Keeping in view such a few cases, it is not fair to subject all the others to a painful, time-consuming and harsh exercise. Any alterations & changes have to be prevented especially in this year as the ‘Direct Tax Code’ is proposed to be introduced. The compliance with laws & procedures become very difficult and tedious when they are changed often and that too causing much hardship & agony to all especially to large number of medium level tax payers.
    It is earnestly requested that the Ministry of Finance & Revenue along with the concerned Departments should reconsider & drop the measures introduced this year and earlier years. They should take immediate steps to withdraw the new provisions, changes etc., especially regarding the Tax Audit Report, Forms 3 CD etc., & other formalities and also prevent such kind of provisions in future. The Wealth Tax exemption limit should be raised to at least Rupees one Crore with retrospective effect.
    I once again stress that acceding to my requests is not going to cause any material harm/loss to the Govt. and on the other hand it will save the public from a severe hardship and cause a great relief to them.
    Expecting a quick and favourable response,
    Thanking You
    Yours faithfully
    ACN Prasad
    P.S. On knowing about various practical problems faced by professionals and the Article & comments given above, we should all join the demand for deletion/dropping of changes in toto.

  • I understand that the Audit and 3CD software is once again modified. Still there are very cumbersome & most tedious points. To cite an example the requirement of elaborate details of loan Creditors with addresses,PANs, Amounts received etc., in Cl.24(a) and again the same details with amount paid in clause 24(b)and details of Relative payments under clause 18.
    To sum up,these new requirements & alterations in procedures are very cumbersome, unreasonably lot of time-consuming & most tedious and I fully agree that these are pure harassment of assessees and professionals at this juncture. As I already said, the benefit to the Govt. is almost nothing as it does not generate any extra revenue. Even if it contributes something to data bank it is not at all worthwhile to subject lot of lower & middle class tax payers to this enormous difficulty & displeasure. The authorities should clarify clearly whether these formalities are applicable to & required even in cases of 44AD cases opting for tax Audit and those who do not have taxable income or loss. It will be better and will be a great relief to a large no. of persons if the Govt. withdraws the new provisions & changes immediately without delay.
    I request the tax-payers and professionals to press for this demand and raise these matters in different forums to make the Govt. to understand the situation and accede to our request in dropping/deleting the the new provisions & changes at the earliest.
    Thanking You
    Yours faithfully
    ACN Prasad
    Chennai,8 th September 2013

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