CBDT has vide notification no. 33/2014 dated 25.07.2014 revised the format of  Tax Audit Report to be furnished under section 44AB of the Income tax Act with effect from 25.07.2014 and vide  Order No.F.No.133/24/2014- Dated 20.08.2014  extended the due date of filing Tax Audit Report (TAR) to 30.11.2014 but kept the the due date of Income Tax Return (ITR) unchanged to 30.09.2014.  Which has created lot of confusion amongst the professional and  taken away the relief provided by CBDT vide extension of due date of Tax Audit Report.

Tax Community has demanded the following from CBDT , which has not got any response or clarification till date :-
1. Defer the Implementation of Revised Tax Audit Report to A.Y. 2015-16 in view of mid year release of TAR and further delay in release of Utility.
2. If above is not possible atleast extended the due date of ITR on the lines of TAR to 30.11.2014.
3. Even if CBDT considers deferring The Revised TAR extension of ITR to 30.11.2014 due to lot of time loss in making effort towards implementation of revised tax audit report and in view of mid year release of TAR and further delay in release of Utility.

Tax Community and professionals has made the above demands also to Elected Representatives, CBDT and Finance Ministry by writing on social media, Websites, giving written representation and sending email to all the concerned authorities but all such efforts failed to gain any result.

Further many tax professionals has also commented on Face book page of ICAI President CA. K. Raghu requesting to make presentation to concerned authorities for extension of due date of ITR and also questioned the benefit from extension of due  date of TAR without extension of due date of ITR, which has not elicited any response from him till yesterday.

In view of the same some of the members of ICAI has decided to fight the issue of extension of due date of TAR without extension of TAR due date on there own and filed an appeal in Delhi high Court on on Friday 5th September 2014 vide Mahesh Kumar & Co. vs. UOI and Others in Court no 2 of  Hon’ble Mr. Justice Badar Durrez Ahmed and Hon’ble Mr. Justice Siddharth Mridul. Writ Petition was  listed for Monday 8th September 2014  vide Diary no. 162371/2014. W.P.(C) 5990/2014 and placed for Final Hearing hearing on 15th September, 2014.

Notices issued to Union of India through Revenue Secretary & Chairman CBDT for final disposal of WRIT on 15 September 2014.

Further Update

In addition to above it has also come to our knowledge that CA Rajni Shah from Gujarat has also filed a writ in Gujarat High Court against the extension of Due date of Tax Audit Report without extending the due date of ITR.

It has also come to our knowledge from unconfirmed sources that Some of the members of ICAI are also in the process of Filing a Writ in Rajasthan High Court.

We hope the good sense will prevail and CBDT will atleast extend the due date of ITR to 30.11.2014 for Tax Audit Cases for AY 2014-15, if it cannot deffer the implementation of Revised Tax Audit Report to A.Y. 2015-16.

Some of the Interesting Post on the subject on our website are as follows :-

1. Completing Income Tax Return without Completing Tax Audit Report

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0 responses to “CA Community Files PIL against Revised Tax Audit report in Delhi & Other HCs”

  1. RiddhiSiddhi says:

    As far as tax audit report in Income Tax is concerned it is independent of Return filing process… It is optional AND NOT COMPULSORY to accept by assessee any comment made and/or dis-allowance of expenses stated in the tax audit report.. An assessee may dis-agree with any qualification made by auditor & he can file I.T. return without referring Income Tax Audit report..

    Tax Audit report u/s 44AB is purely for facilitating Assessing Offices to make assessment with/on the basis of his own expertise/knowledge & wisdom AND NOT TOTALLY ON THE BASIS OF TAX AUDIT REPORT U/S 44AB.

    Hence the importance of Tax Audit Report u/s 44AB is very less in the process of Income Tax Return Filing…

    Hence obtaining Income Tax Audit Report u/s 44AB is totally extra financial as well as physical burden on the Citizen of India…
    – See more at: https://taxguru.in/income-tax/update-tar-extension-deferment-cases.html#comment-1131910

    • Dipak Shah says:

      There is some comments also. In one case , Income was shown as taxable and credited to profit and loss account. The same as Tax Auditor deducted as Not Taxable Income !! Who should look after , the practice and process !!!!
      Shah D J

  2. MANDEEP SINGH says:

    I am always surprised from the policies of our government regarding financial audit under INCOME TAX, VAT & SERVICE TAX etc.

    DAY BOOK,CASH BOOK,LEDGER & STOCK registers are maintained regarding financial data of any business. Till today, I am not understand what is need of separate audit regarding same financial data under different tax acts. What is motive behind it of our government, ministry of finance & ICAI for given such kind advice . What is need to verify same books again & again under different tax acts.

    NOW QUESTION ARISES WHETHER OUR GOVERNMENT’s MAIN INTENTION BEHIND IT TO OBTAIN PROPER COMPLIANCE FROM ASSESSEES REGARDING TAX LAWS THAN IT IS NOT A ” AUDIT”. IT IS A LEGAL OPINION ON TAX LAWS AND CHARTERED ACCOUNTANTS ARE NOT AUTHORIZED TO GIVE LEGAL OPINION ON TAX LAWS. IF THEY DOING THAN IT WILL BE CALLED AS” UNAUTHORIZED PRACTICE OF LAW”

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