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)

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Tags : Due Date (126) section 44AB (151) Tax Audit (279) Tax Audit Report (158) tax auditor (99)

0 responses to “Appeal in Delhi HC against non extension of Tax Audit due date”

  1. Amitabh Shukla (Tax Lawyer) says:

    This is very good sign for our India, that Government wants to make puntual to its citizens. But before it, they should also be puntual. ITR Forms should be available on 1st April every year. CBDT released all forms in last july to starts august. It is TANASHAHI.

  2. A says:

    PLease write all this on FM s twitter page he will extend the date
    As the whole world will see that govt is not helping in ease of business only making business more difficult to do

  3. harinatha says:

    harinatha Says:Not required For Extension of Tax Audit Due Date

  4. ca rajesh godse says:

    cbdt and finance ministery should keep in mind that icai is one of the most importnat limb if revenue collection and they should be in shoes of ca’s and will come to know the stress. actually tax audit dat should be perpetually extended to 31st october and business and salary returns till 31st december.

  5. ca rajesh godse says:

    cbdt and finance ministery should keep in mind that icai is one of the most importnat limb if revenue collection and they should be in shoes of ca’s and will come to know the stress. actually tax audit dat should be perpetually extended to 31st august and business and salary returns till 31st december.

  6. SUSIL KUMAR says:

    AUDIT REPORT & INCOME TAX RETURN FILLING DATE SHOULD BE EXTENDED UPTO 15 OCT-2015

  7. IGANESH says:

    modiji ki taraf se sabke khate mey penlty ke liy Rs.1,50,000/- adhar link se jama honewale hai isliy tension mat lene ka.

  8. Aabid says:

    the internet service was suspended for four days in J&K, how is it possible to complete the ausit in jus 12 days from the due date of filing of unaudited returns..

  9. Jitendra Kumar, advocate says:

    the due date could be extended if we put forward some problem of ‘Gujrat’ tax payers. Like always first Gujrat and then all others

  10. anjan bagchi says:

    CBDT PLEASE EXTEND THE TIME FOR FILING RETURN

  11. Nitin Bhave says:

    Due date must extend for 2 months Dig Sig bhi complicated ho Gaye hai sad ran assesse pareshan hai

  12. chandra says:

    always this has became childish attitude by cbdt. on the last date cbdt issues circular for extention. till that time all we have to suffer and later cbdt extends, why not to issue in advance so that all we ca’s can file reports freely without any tention.
    advcice to cbdt is to be friendly, and be approchable to public interest. and don’t play childish by extending due on the last date.. let cbdt pro give statement on current affairs daily.

  13. Dharam Vir says:

    Just see the kind of language used “it has been decided not to extend….”, is this democracy or dictatorship ? Never expected this insensitive attitude from Modiji’s govt. 70-80% of taxes are already paid in form of Advance Tax and TDS, don’t understand how much Govt will loose if date is extended by 15-30 days. The number of audit cases are increasing every year plus the ITRs were notified so late… The CBDT should realise that CAs and Tax Professionals are human beings and not machines.

  14. CvKrishna Kishore says:

    The Department Officials are treating the Tax Professionals and Chartered Accountants are a common lay man, we are facing lot of problems and burdens in filing the tax audit reports and returns the due date is in the earlier years is given up to 31st December of ever year, but subsequently they are reducing the due date, if the due date is extended up to 31.12.2015 it is more convenient to the professionals and also sufficient time to verify the financial statements and give fair reports, and also it is a clear fact non audit returns are also extended up to 07.09.2015, the professionals are busy up to 15.09.2015 for preparing the advance-tax calculations for next assessment year and also some persons are very busy up to 20.09.2015 for filling of VAT Returns e filing, I hope the Honourable High Court will consider the matter in our favour.

    • SUGUMARAVEL says:

      Is this the way the Government Authorities to behave? They should work for the common people and more particularly the Tax Payers. The Government Authorities think that they are the ultimate authorities, as the Government, especially the Finance Ministry is backing them up and due to that only they do not even consider the tax payers, CAs and other Professions involved in filing of Tax Returns. Every should work for the welfare of the common people that too the TAX PAYERS. The corrupted people are enjoying like anything and involve in scandals, the so called Government Servants / Authorities seems not working for the people instead they serve their political masters as they think they are the Supremo. What will happen if the due date for filing the tax return is extended for at least 15 days or so? As somebody mentioned it was extended for more that 2 months last year. Is it fair on the part of the Government to force the TAX PAYERS like any thing. Those who are not filing returns are not worries and the Government also does not take any action on Black Money. On the other hand the Govenrment squeeze the Tax Payers. So, appropirate action should be taken for the extention of due date for filing the Tax Audit cases.

      I also wonder, how the Writ Petition was filed instead of PIL?. Whos advised to file Writ instead of PIL? Eventhough, I appreaciate the effort for putting the matter to the Hon’ble Court and at the same time I humbly feel that one should have taken enough care before filing any case in a more vital cases like this.

  15. Niloy says:

    It seems CBDT is not going to extend the date under any circumstance…

  16. M KUMAR SWAMY says:

    Dear All, it seems only for ITR 5 & 6 and what about ITR 4. Any Guess.

    Lets Hope for the best 🙂

  17. sanjay tripathi says:

    MITRO AAO AAP KO PM KI MANN KI BAAT SUNATA HU.

    PM KE MANN KI BAAT HAI KI WOH FORIGN SE TO BLACK MONEY LAANE SE RAHE. SO UNHONE IMMANDAR TAX PAYERS SE PENALTY AUR INTREST KE ROOP ME DHAN JAMA KARNE KA SANKALP LIYA HAI. AGAR WOH DUE DATES BADHA DENGE TO UNKA YE MISSION POORA NAHI HOGA. ISLIYE INDIAN PUBLIC SE ANURODH HAI KI SAB LOG PRADHANMANTRI KE MANN KI BAAT SUNE AUR RETURNS LATE FILE KARE AUR INTREST AUR PENALTY KE ROOP ME SARKAR KI TIJORI BHARE JISSE TAX NAA BHARNE WALO KA PRADHANMANTRI KALYAN KAR SAKE.JAI HIND JAI BHARAT

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