UPDATE ON 14.09.2015
High Court has not accepted the Writ and said that the issue involved partakes the character of Public interest and Appellant should have filed Public Interest Litigation (PIL) instead of Writ Petition. High Court has allowed assessee to file PIL.
What Next
We will keep updating you on the issue and also on other writs which are being filed through out the country for Tax Audit Due Date Extension.
10.09.2015
CA Avinash Gupta and Tax Research Foundation, Delhi has filed a Writ petition in Delhi High Court on 10.09.2015, seeking Extension of due date of Tax Audit Report required to be filed Under Section 44AB of the Income Tax Act,1961 for Assessment Year 2015-16.
Writ details are as follows :- Avinash Gupta and Ors V/s Union of India and Ors (Delhi High Court) , WP(C.) of 8771 of 2015.
Writ is likely to be listed in Court Room No. 09 on coming Monday i.e. on 14th day of September, 2015.
It is to be noted that last year too many Chartered Accountants & Tax Association has filed writ petition in various High Courts across India and got the due date extended.
This Year CBDT has already rejected any possibility of Due date extension vide its Press Release dated 09th September 2015 which has drawn several criticism from those Associated with Tax Audit Related work.
In the coming Various Tax association from Other parts of Countries and Chartered accountants are also likely to move to other High Courts to get the Tax Audit and Return Filing date extended.
We are attaching herewith Draft of Writ Filed in Delhi High Court and also reproducing below the Grounds on which the writ been filed for the benefit of our readers –
GROUNDS OF APPEAL
A. Because the decision of the Respondent No.1 and 2 vide its Press Release Dated 09.09.2015 by virtue of which, the Respondents has denied to extend the date for filing of returns due by 30.09.2015 for Assessment Year 2015-2016 for certain categories of Assesses including Companies, and Firms and, Individuals Engaged in Proprietary Business/Profession etc., whose Accounts are required to be Audited in terms of section 44AB of the Income Tax Act 1961, is unreasonable, unjust, arbitrary, illegal and unconstitutional and that the same is inter-alia, in violation and contravention to Article 14, and Article 19 (1) (g) of the Constitution of India, as the same is infringing the fundamental rights of equality, trade and profession which is guaranteed under the Constitution of India.
B. Because the Respondent No.1 and 2 ought to have extended the date of filing of Returns due by 30th September for Assessment Year 2015-2016 for Categories of Assesses Including Companies, and Firms and, Individuals Engaged in Proprietary Business /Profession etc., whose Accounts are required to be Audited u/s 44AB of The Income Tax Act, 1961 from 30.09.2015 to 31.12.2015, on the account of belated notification of the Income Tax Form with the exorbitant delay.
C. Because the decision of the Respondent No.1 and 2 as mentioned in the said Press Release is inter-alia unreasonable, arbitrary, unjustified and unconstitutional, as the same is causing grave prejudice and harassment, not only to the concerned Tax Payers but also for the Chartered Accountants community at large, who are responsible for conducting the tax audit and further to file the same alongwith the Income Tax Return in accordance with Law, in as much as in the given facts and circumstances the time left to make compliance of Section 44 AB of Income Tax Act has been reduced, as the Respondents much after 01.04.2015, has belatedly notified the Income Tax Forms for respective categories of Tax Payers.
D. Because the Tax Payer as well as the Respondents expect from the Chartered Accountant a 100% compliance with zero tolerance while make compliances under the Income Tax Act, however it is not possible to justify the role to the full extent in just 23 days, as the Income Tax Return for the Assesses/Tax Payers not liable for Audit, were being filed till 07.09.2015, in terms of the period of filing ITR being extended by the Respondents on account of delay in notification of ITR Forms.
E. Because the most affected category of Tax Payers has been the Assesses including Companies, and Firms and, Individuals Engaged in Proprietary Business/Profession etc., whose Accounts are required to be Audited in terms of the Income Tax Act 1961 and who suffered a delay in notification of forms and consequent reduction of time wherein the delay in notifying the forms by the Respondents has reduced the time of filing Income Tax Return by 122 to 128 days respectively.
F. Because the Respondent No.1 and 2 has acted against the constitutional Right of Equality under Article 14 of the Constitution inter-alia in as much as the Respondents suo-motu has though given a benefit of extension of time to the Assesses/Tax Payers not liable for Audit till 07.09.2015 (though as per law the last date is 31.07.2015). However, similar such benefit has not been given to Assesses/Tax Payers liable for Audit u/s 44AB.
G. Because inter-alia due to the unjust prejudice and harassment being caused on account of the aforesaid reduction in time, various representations were filed before the Respondents inter-alia by Institute of Chartered Accountants of India. However, the Respondents without any application of mind and in highly unjust, arbitrary and unconstitutional manner did not consider the said representations and denied to extend the time for filing the date of Income Tax Return from 30.09.2015 to any further date vide its said Press Release Dated 09.09.2015.
H. Because as per Section 139 (1) of the Income Tax Act,1961, the Income Tax Return of every financial year ending on 31st March, should be filed in the assessment year by following dates of different categories of Tax Payers:
| Sr. No. | Category of Assesse | Date of filing ITR | Time available for filing ITR |
| 1. | Assesses not liable for Audit under Income Tax Act or any other Act. | 31st July | 122 days |
| 2. | Assesses liable for Audit under Income Tax Act or any other Act (except mentioned in Serial No.3) | 30th September | 183 days |
| 3. | Assesses covered under transfer pricing regulations | 30th November | 244 days |
That accordingly, as per law, the respective Forms under which the respective categories of Tax Payers are required to file their respective Income Tax Return, has to be duly made available to respective categories of Tax Payers on the very first day of the assessment year, so that every tax payer, duly know the manner/prescribed format in which the Income Tax Return is required to be filed and accordingly have sufficient time to further file the Income Tax Return in the prescribed format.
I. Because the Respondent No.1 and 2 despite knowing well the essence of time in filing Income Tax Returns, under the garb of alleged reforms and ease of doing business has deliberately failed to notify the prescribed income tax return forms for respective categories of Tax Payers.
J. Because the Respondent No.1 and 2 notified the Income Tax Return Forms for all types of Assesses (auditable and non-auditable) at a belated stage, on different dates being as under:
| Sr. No. | Forms for the Category of Assesse | Date of Notification of Forms | Date of enabling E-Filing | Reduction in Time (Days) |
| 1. | ITR 1 & 4S | 23.06.2015 | 23.06.2015 | 83 |
| 2. | ITR 2 & 2A | 23.06.2015 | 29.06.2015 | 89 |
| 3. | ITR 3,4 & 7 | 29.07.2015 | 01.08.2015 | 122 |
| 4. | ITR 5 | 29.07.2015 | 02.08.2015 | 123 |
| 5. | ITR 6 | 29.07.2015 | 07.08.2015 | 128 |
It is submitted that on account of the said delay on the part of Respondents in notifying the said Forms, the Tax Payers of the respective categories has suffered a grave prejudice, as due to the same, the respective Forms were not available to the respective categories of Tax Payers, as on 01.04.2015. It is submitted that on 01.04.2015, the right of every tax payer, duly accrues to know the manner/prescribed format in which the Income Tax Return is required to be filed and the right to further file the Income Tax Return in the prescribed format, which ought to have been made available on 01.04.2015. That as is apparent from the aforesaid chart, due to the said belated notification of forms, the different categories of tax payers have suffered and prejudiced on account of reduction in time in preparing and filing the Income Tax Return.
K. Because while notifying the Income Tax Forms for Assesses not liable for Audit under Income Tax Act, the Respondents acknowledging the fact of reduction in time for filing ITR for 81 days, suo-motu extended the date of filing ITR for the said category initially by 31 days i.e 31.08.2015 and further extended the said date by another 7 days i.e 07.09.2015.
L. Because the Ministry of Corporate Affairs came out with various notifications/clarifications in the new Companies Act, 2013, which has direct implications on the filing of Income Tax Return and the Audit of the Companies under Income Tax Act, 1961. It is also pertinent to mention that the provisions of the said enactment are being made applicable for the first time, while preparing the Annual Accounts of the Corporate Entities.
Further, in this vague situation and circumstances, the most affected category of Tax Payers has been the Assesses including Companies, and Firms and, Individuals Engaged in Proprietary Business/Profession etc., whose Accounts are required to be Audited in terms of the Income Tax Act 1961 and who suffered a delay in notification of forms and consequent reduction of time wherein the delay in notifying the forms by the Respondents has reduced the time of filing Income Tax Return by 122 to 128 days respectively.
Download Copy of Writ Petition Filed in Delhi High Court
(Republished with Further updates)
CBDT HAVE TO EXTENT DUE DATE FOR TAX AUDIT
HOPE TO GET POSITIVE RESPONSE AS SOON AS POSSIBLE
Extension of Due Dates set a wrong precedent for professionals. This is not new that the last date known to our knowledge just now. Time bound scrutiny/audit is must to uphold professional excellence and in the greater interest of the society at large. If we cannot do in time, we must find a alternate solution. One must seek extension only in rare cases but we a vibrant democracy seeks such extensions every now and then and it is now becoming everyone’s right to seek such relief.
Very good effort by CA Avinash Gupta and Tax Research Foundation. We are with you.
All the best !!!
this is a very good initiative and step taken by CA avinas guptaji. we are leaving in deaf and dumb government operated country. Acchedin public ke nahi BJP walo ke aa gaye hai. Penalty aur intrest on tax se wo “SARKARI TIJORI” BHARNA CHAHTE HAI.I think our Institute has also to file a pettition.
If they would not extended the non auditable firms due date filing return date, then some how auditable firms work can be done, but its too late, now there is no chance, they have to extend the due date for auditable firms…….
GOOD EFFORT.
cbdt members should be held guilty and penalised for acting in a dictating manners and not fulfilling their job responsibilities (failure to notify and implement e filing in time)
Demand for extention is logically correct. Hope we will get.
Sir,
In our country the crops and business season begins in October and ends by September next. Because of Englishization of the Country, Accounting yearend preferred as 31st March which cuts the working period of the year in two parts. Because of continuation of season between April-September period as also festive season and vacation falling in that period, people get less time to attend to their affairs and accounts. Preferably, accounting yearend should be September 30, and filing compliance should be by March next. This will solve most of the time issues for the business communities.
But who cares where the penalty & fines are treated as good and lucrative source of income to the Government. It is sad that the Government, instead of being a source of security for the citizens, is keen to prove the citizens as criminals and defaulters by, some how, creating technical defaults in compliance. So…sad. I suggest to include this as a ground of appeal/writ.
CA Institute should also file writ petition as their regulator for us.
Due to the amendments made in the Form No. 3CD, the reporting responsibilities of the assessee and the auditor have increased.
The assessee may have to put in place systems and processes to collect the information required by the amended Form No. 3CD.
The revision to the tax audit report has added new responsibilities for most companies and auditors. These changes require more time to collect information given the potentially short timeframe for implementation.
By giving us extra time it will also facilitate the administration of tax laws by a proper presentation of accounts before the tax authorities and considerably save the time of Assessing Officers in carrying out routine verification. The time of the Assessing Officers saved and could be utilised for attending to more important and investigational aspects of a case.
Effort by CA Avinash Gupta and Tax Research Foundation, Delhi is commendable.
Thank you Avinash Gupta & Others for the initiative. This government came in to power by promising EASE OF DOING BUSINESS in INDIA, but this context itself shows that the Government and CBDT is at it’s high-handedness. Few of my clients suffered a lot, as they planned to avail bank OD facility, but the bankers denied to process without latest ITR’s.
Central Government of India have given a commitment of ease of doing Business in India.The writ is surely reminder of the commitment made to be fulfilled. Great efforts.
The C A Institute and the Tax Practioners institute, Advocates should have taken a common platform to voice this grievience. As a body the appeal should have been filed.
Not only delay in prescribing the form but the electronic medium through which the uploading is done is always trouble shooting and changes are done at various intervals not only under income tax act but the other relevant statues too. The work load of accountant has increased as there are so many laws under which compliance is required and is all time bound. Check the deadlines under various acts under various laws and particularly the vat laws. There are many a glitch in electronic filing which eats into a business man’s and auditors time. This can also be highlighted. I hope not only this year but every year whenever this sort of problems are there, the CBDT should extend the time voluntarily to facilitate the procedures. ~ A step well taken and all support. Let the last date under audit cases be extended to November every year and all the forms etc are prescribed before 31st May every year.
The fact of nonavailability of the forms on 01 st April of every year needs to be hard pressed, and a permanent solution to this laxed attitude of department in notifying the forms should be SOUGHT
the departments attitude and the manner of examination of the representation is also questionable.
The Foreign nationals and NRI clients are yelling at us as to why we are unable to file the returns in the first weeks of April itself WHEN THE GOVERNMENT IS ALREADY COLLECTING ADVANCE TAX
Why the government is permitted to collect advance tax if it is not able to perform its SOVEREIGN FUNCTIONS IN TIME
Since 30th September is to be reckoned with tax liabilities can worked out only after 1st October.Also under VAT laws 6 months are given to rework on goods returns. Therefore sales made towards end of March can be returned by 30th September customer
Good move and Govt should not put tax payers / auditors to trouble and Govt should stand for the taxpayers who are contributing for the country. Govt / CBDT should extend the date before the verdict of HC.
Thanks,CA Avinash Gupta & Tax Research Foundation,Delhi.
We should demand for removing the specified date in the Act itself. Filing TAR with Return should be implemented irrespective of the date of filing of return. TAR is to facilitate the AO to make an assessment in a easy manner. auditing and filing at a later date will not water down the quality of TAR. The govt is not going to loose anything if filing within specified date is removed. There need not be any requests in future for such extension. Please add this also during hearing if possible.
Dear Sir,
I am shouting against the Non extension of the Date of any Return filing Due Date, CBDT himself Defaulter in uploading the ITR without any vital change accept the Bank Account Number, The CBDT uploaded the ITR’s ending of first week of AUGUST-2015 and after that several complication arises in uploading the ITR – AY -15-16, while no problem arise in uploading the ITR FOR AY -14-15, after several queries the Help line suggest that Internet Explorer should not be less than 9,- some one told me that CBDT still not allowed to upload the ITR – AY-15-16; The CBDT not flash any instruction and condition regarding the Internet Explorer must be 9 or more than 9 VERSION. The Assessee and as well as I the Professional of Income Tax was in problem till the Internet Explorer 9 version.
I think the Date must be extended till 31st December 2015 or TILL COMPLETION OF ASSEMBLY ELECTION – BIHAR.
THANKING YOU
RAMESH KUMAR THAKUR
It’s unfortunate that every time we have to approach the court for getting extention of time. All the best.
Good step taken … hope for the best
looks ultimate choice as reason has failed.Good luck and hope relief comes early enough and not on nth minute as it happened last year.Wish some body could do it in Gujarat High Court too as they had passed strictures against CBDT last year for same rigid stand .why do they treat tax payers and professionals like this ?
My apprehension is that the other professional will come forward tomorrow and will take the space and we will not be able to keep our stand.
Very good move, CA Avinash Gupta and Tax Research Foundation. We are with you . All the best !!
Hello My Professional Friends
At present Karnataka is DARK with load shedding upto 8-10 hrs a day at some areas in Bangalore itself, then in other parts of Karnataka even worse. Under such circumstance when to print & scan the Audit reports. We provide the greatest opportunity of compliance to our Hon’ble FM to come and work in Karnataka at the present scenario.
Mera Bharath Mahaan
This is shameful that in this ” Swatantra Bharat’ people are still under control of Few man who was choosen by people for people but they never understand the difficulty of common man.
Hope the date will extend.
Fantastic drafting .All support to our friends who are working for the fraternity at large.The High court cannot turn a blind eye to the petition The case must be presented in the way and the force it is drafted.
The writ filed is absolutely right.its necessary for quality work… We all are with you….
All the best
Goverment makes frequent changes in forms, enactments, procedures and online computer software and systems.It takes time for Assesses and others to get familiar with these changes and to gather information.It is obvious that it takes time to percolate these at all levels.Taxpayers of the country are making best efforts to comply with this even in such uncertain environment.What they are seeking is just extension of time for proper compliances. It is very justful that date is extended.
Sanjay Chaware
CBDT should not behave like a master with cane. After all, the income tax assessees are the back bone of our country. They should be relaxed.
Good initiatives for good and justifiable objects always results best.
Thanks
Thanks,To CA Association in taking right steps at right time I HOPE WRIT PETITION will be allowed and justice will flow and a SLAP will be given to CBDT
Good Job done for the fraternity as whole. All the best sir….
Hope for the best
POSITIVE APPROACH
POSITIVE INITIATIVE
HONOURABLE HIGH COURT MUST BE LISTEN YOUR VALUABLE OPINION
HOPE FOR GOOD RESPONSE.
HOPE FOR GOOD RESPOSE IN OUR FAVOUR.
Goodd initiative. For us also, it is better to notify the form in time and not to extend the due date.
So many details required in the form are collected in Tax Audit and we cannot complete the audit before hand
Putting all pressure on CAS are not good for the profession.
At the end, executive democracy is not good for the country and The country started to suffer from last UPA Rule itself because of executivism
Dear All, it is very unfortunate in this country that Govt. bodies like CBDT are to be shown the way through legal course to comply with law. What right they have in asking us to comply with the laws of the land? I still have faith in our judiciary system. But what if the writ petition is rejected? God only knows.
why only delay in notification of the forms only why not the application of the provisions for calculation of depreciation as per the companies act 2013 wherein we have to collect the data of assets for more than 40-50 years or since inception of the company how much difficult the work is for the staffs of the clients who are being sandwiched between the auditors requirements and the directors/ owners of the company but nobody is thinking about these poor staffs and how come our honable finance minister will know the plight of these office staffs .
All the Best to All My Dear Auditors and hope wil extend of due date
Sir,
if court rejects the plea then that would be a weapon to dept. The writ must be the last option after trying out all other avenues. Anyway all the best.
GOOD INITIATIVE
The writ filed is absolutely right. Please try & take signature campaign online, like some NGO are doing, so that it can be produced before Hon Delhi HC.
A cool news for CA community.
Instead of fighting every year,we should find permanent solution to this. The Due date of Tax audit report should be XXX No of Days realsing the ITR form from CBDT.
well done friend; hope to get positive response from The Hon’ble Delhi High Court
Good step take and all the best . Hope Honourable High Court will consider the matter.