CA Sandeep Kanoi

In his election manifesto and various speeches given pre-election Finance Minister Arun Jaitley has vowed to end environment of tax terrorism created by the previous UPA regime. He underlined that several measures announced in the budget by him were to end the environment of scaring away the investors in what some call ‘tax terrorism.’

Taxpayers around the country expected to him to take steps which could make people understand that Indian taxman is a “Tax Army” – equipped with the ammunition and also the knowledge of when to use it and not a “Tax Terrorist” who indiscriminately uses the tax laws and causes mayhem.

But after 100 days of BJP Government and one full Budget by them, it is observed that current government is no different from Previous Government as far as tax front is concerned. In our previous article we have discussed some instances of Tax Terrorism continuance in BJP Regime – Tax Terrorism continues in Union Budget 2014 . These has made us think that in BJP regime Nothing has changed except our belief that we would have better days in this regime and that the government listens only to the bureaucrats who continue to empower themselves with more weapons of extortion and threat.

In addition to the same large scale reopening of Income Tax Cases of share deals of hundreds of unlisted companies based on mere data collected from ROC further strengthens our belief of continuance of Tax Terrorism.

One more such instance is  non extension of due date of Income Tax Return (ITR) despite demand for the same by Trade, Tax Payers and Chartered Accountants around the country. The government has recently extended the due date of Tax Audit Report Filing date without extending the due date of Income Tax Return (ITR), which has created lot of confusions and left the tax payer and tax tax professionals with inadequate time to file the Income Tax Returns.

 CA Surendra Kumar Rakhecha from Surat Said that “The government believes that every assessee is expert in information technology and/or those who are expert in infotech are only eligible to do hassle free business in India. Despite every year enhancement in tax collections, more and more tax collection targets are fixed as if BUSINESS is being run. Whatever were wrong so far in the tax collections, the government wish to correct it in a short period. ‘Government is helpless when BLACK MONEY is earned by TERRORISTS because they are out of reach hence it is easier to catch those who are identified and can be compelled.”

CA Sanjeev Lalan from Mumbai said that “New Tax Audit forms are casting such a huge responsibility on both the assessees as well as the auditor that it is very well an act of tax-terrorism. Further, the manner of in which the issue of extension of time is being handled by the babus makes one feel that we are beggars and not citizens of this country. They are still functioning with colonial mindset. Atleast the colonialist were fair in some of their approach. It still defies my understanding as to how a return of income could be filed before the tax audit is completed when the very objective of introducing the provision was to enable filing of correct return of income. It appears that the administration of country is beyond the control of anyone at all.”

CA Sudhir Halakhandi from Rajasthan said that “Tax terrorism is not only continue but it’s intensity has been increased and the promise of the simplification and rationalization of taxation system of the country is now totally broken as have been seen in the current TAR and ITR controversy and this is not very good sign for the future of taxation in India. If this is continue and not checked properly then there will be lot problems to the tax payers when GST will be introduced in our country and the success of GST will also be badly hit due to this unwarranted habit and hobby of the lawmakers.”

One of the reason for extension of due date for Tax Audit Report by CBDT was Mid-Year release of Revised Tax Audit Report and further delay in release of Utility for filing of the same. Recently in its representation to CBDT ICAI has suggested that

a)  the due date of filing return of income under section 139(1) for assessees mentioned under clause (a) of Explanation 2 to section 139 (1) be extended in line with the extension granted for submission of tax audit report under section 44AB of the Act.

b)  Since the provisions applicable to every Assessment year are clarified by the relevant Finance Act well in advance, it is further suggested that all ITR forms and forms of Audit reports be notified well in advance by 1st April every year, to avoid such situations. 

In appeals pending before Delhi and Gujarat High Court one of the reason given by CBDT for non extension of due date of ITR is that same will delay the tax collection and will result in revenue loss for the government.

It was argued by Petitioners that Tax Audit Due Date should coincide with the Due Date of Return Filing. When Tax Audit Report Filing due date has been extended for 2 months, then return filing due date must also be extended.

We hope Honorable High Court brings a solution acceptable to all and impart justice to taxpayers around the country. We further hope that CBDT will release all forms related to Audit and Income Tax Returns alongwith Utility on or before the start of the Assessment year i.e. 1st April.

To know status of the cases pending before various High Courts Please check the following link : – Status update on TAR Extension / Deferment Cases Pending before Various High Courts.

Lets hope the New Government to take further steps which makes taxpayer fell safe and without any terror.

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0 responses to “Non Extension of Due Date of ITR – Tax Terrorisam Continues”

  1. Sunil kocheta says:

    Certainly the dept is not thinking with positive views with the view on difficulties being faced by assessees

  2. Maharshi Bhatt says:

    Congratulate to All the CAs of Gujarat.
    Hope that CBDT Comes with a good decision ASAP
    & They don’t show up their Ego & Lame reason for not extending . as per CBDT If the 90% ITR is filled then there should be not having any reason not to extend because of Budget or two month late of the tax collection.

    I would not surprised that they say there is no reason not to extend the date
    Please give the upcoming updates regarding the CBDT order if they extended it. If they do this then we could say that “ACHE DIN AA GAYE HAI”

  3. Nem Singh says:

    Agree with the views expressed by Shri Lalan ji tha “the manner of in which the issue of extension of time is being handled by the babus makes one feel that we are beggars and not citizens of this country. They are still functioning with colonial mindset. Atleast the colonialist were fair in some of their approach.”

    • Ramesh Kumar Thakur says:

      Several Honorable High Court ordered CBDT to extend the Date, can we agree that the no value of the order of Honorable High Court in the eye of CBDT. WHAT WE SHOULD DO, TO DAY IS 25TH SEPTEMBER 2014 AND THE CBDT ANNOUNCES THE LAST BREATH OF AUDITED RETURN WILL BE 30/09/2014.
      I am still in hope The CBDT should honor the Direction of Honorable High Courts.
      let us see
      with regards
      Ramesh Kumar Thakur

  4. S PRAKASH says:

    sir,
    the protest should be from the tax payers and not from CA,tax practitioner or the Advocates. The Tax paying community should understand the problems and the Trade Bodies, Fed ration of Chamber and Commerce, industries associations and the like should get up from the deep sleep and should question the government regarding the TAX TERRARIUM.We are paying the tax for the development of the country and our courts are not for just hearing the cases for the postponement of the date of filing the returns, it has got its own work to look into.Kindly do not allow the people to use judiciary for such subjects.With this kind of taxation system how Mr. Modi welcome the industrialists to MAKE IN INDIA?

  5. B S K RAO says:

    VINOD LALCLHANDANI SIR, INCOME-TAX LAW WAS ALLOWED TO COMPLICATE BY CBDT ON TAKING THE ADVICE OF ICAI (FINANCIALS) SINCE 1984, SO THAT THEIR MEMBERS WHO POSSESS CORE COMPETENCE & EXPERTISE CAN ONLY PRACTICE THE SAME BY INSERTING 46 PLUS MANDATORY CA CERTIFICATES IN IT.

  6. VINOD LALCLHANDANI says:

    why talk alone of income tax terrorism. it all over may it be corporation, police, custom n excise, dda, L &DO, SALES TAX , VAT IT IS 99 % INSPECTOR RAJ.. HOPE MODI JI AND HIS TEAM WILL CORRECT THE SYSTEM BY MAKING LAWS EASY AND UNDERSTANDABLE BY COMMON MAN, PEOPLE HAVE VOTED THE CURRENT GOVERNMENT BECAUSE OF CURUPT INSPECTOR RAJ. ONE HOUSE IS MADE FREE HOLD AND SAME TYPE OF OTHER CASES ARE BEING REJECTED AND FINE/PENALTY IMPOSED, WHAT IS THIS?. THERE ARE THOUSANDS OF SUCH EXAMPLES. NOW IT IS TURN OF THE GOVERNMENT TO ACT IN THE DIRECTION

  7. Anonymous says:

    “33. Advocates alone entitled to practise. — Except as
    otherwise provided in this Act or in any other law for the time
    being in force, no person shall, on or after the appointed day, be
    entitled to practise in any court or before any authority or
    person unless he is enrolled as an advocate under this Act.”
    Under section 33 of the Act of 1961, no person is entitled to practise
    in any court or before any authority or person, on or after the appointed
    day, unless he is enrolled as an advocate under the Act of 1961. This is
    however, subject to a provision to the contrary being made in the Act itself
    or in any other law for the time being in force. The embargo which is
    enacted in Section 33 of the Act of 1961 upon persons, who are not
    advocates practicing in any court or before any authority or person is,
    therefore, clearly subject to a provision to the contrary in the Act or except
    as otherwise provided in any other law for the time being in force. Hence,
    where a provision is contained in any other law for the time being in force,
    entitling persons who are not advocates to practise in any court or before
    any authority or person, its effect would be to lift the embargo which is
    imposed by Section 33 of the Act of 1961.

    Please read and understand everyone.

  8. SREEDHAR N says:

    Dear Padhi can you explain briefly about interest before 89th day

  9. Anonymous says:

    We need to mention the date of tax audit report when we file income tax return. The return won’t get validated if the tax audit report date is not mentioned. How are we to file the income tax return electronically then.

  10. CA Karan Joshi says:

    Dear Padhi, What are you? A businessman or a CA. The CA whom you are referring to has suggested only to pay the interest and not to evade tax. Its just another government who is trying to take advantage of the previous government weaknesses. Sandeep, why don’t you take this vows to the public through various medium like TV news, newspapers etc., which would ideally reach the masses. The concerns and the extortion which is being rampant across the country. Only a person actually involved in work can understand the hardship behind this amendment in tax.

  11. Mukesh says:

    What are the Consequences of late filing of Income Ta Return ?

  12. Ramesh Kumar Thakur says:

    Dear Sir,
    if an assessee residing in Bihar and his/her businesses are at Kashmir, how it is possible to file their return within prescribed time, all world knows that not only Kashmir residents are affected but the outsider of the Kashmir whose business are at Kashmir, how can they file the ITR ? please Advice. while the extension only to the Kashmir’s.
    Thanking You
    Ramesh Kumar Thakur

  13. Rajesh Chheda says:

    Dear Sandeep, why are we going for the extension of the Due date for filing of Return. Instead we should fight against the New TAR introduced by the CBDT in between. The provisions relating to the Income tax are already introduced in the last year’s budget. At that time CBDT was there. There was no change in authority i.e. CBDT. then why they have not introduced the TAR in advance on 01.04.14? thus they are transferring their lacuna on the heads of Citizens of India (which include Businessmen & Professionals). It needs KRANTI… to change the age old laws dumped by the British Govt. WE are calling our nation as Independent and we celebrate the Independence Day. Think Over it…. Are we INDEPENDENT?

  14. ASHWIN GALA says:

    A very good article. It must be known to public that there is unnecessary harassment to public due to wrong attitude & wrong policies of Govt. & Govt. officers. A lot of energy is wasted in such unnecessary petty disputes. That is serious loss to national productivity. The govt. can easily avoid such blunders. The govt. is very much away from the Govt. of the people, for the people & by the people.
    The business associations , chambers etc. & the assessees themselves must raise strong voice against the Govt. for such policies & such bad administration.

  15. 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…

  16. Harshdrai says:

    ONE DAY stike infront of income tax offices.At Delhi infront of CBDT & FM Office.

  17. Sanjeev Lalan says:

    Yes Sandeep, can’t agree more on the valid problems raised by you in the article. It is high time responsibility is fixed on someone specifically for creating this avoidable muddle. There is no rocket science required for preparation of such forms in time if it was felt that the information is necessary. The forms are casting such a huge responsibility on both the assessees as well as the auditor that it is very well an act of tax-terrorism. Further, the manner of in which the issue of extension of time is being handled by the babus makes one feel that we are beggars and not citizens of this country. They are still functioning with colonial mindset. Atleast the colonialist were fair in some of their approach.
    It still defies my understanding as to how a return of income could be filed before the tax audit is completed when the very objective of introducing the provision was to enable filing of correct return of income. It appears that the administration of country is beyond the control of anyone at all!
    Thankfully the judiciary has always been a saviour of citizens in such trying times and has been granting relief to common man during such times.

  18. CA Rakhecha Surat says:

    The government believes that every assessee is expert in information technology and/or those who are expert in infotech are only eligible to do business hassle free. Despite every year enhancement in tax collections, more and more tax collection targets are fixed as if BUSINESS is being run.

  19. R. K. Kotian says:

    Why we, as citizens of this great country, are not entitled to have fair and reasonable laws and rules. Why delegated legislation is harsher than the laws passed by Indian Parliament. Why, when the rules themselves are supposed to be first published and comments of people considered before they are passed and implemented, and then placed before the Parliament, the forms prescribed under the so called authority of laws do not follow such procedures.

    The present Government of India has moved in the direction of not having retrospective laws. How can such a Government allow its Officers to make rules which impact them retrospectively.

  20. R S SHAH says:

    Sir,
    Small typographical error. the spelling of extension is mistyped as extenssion in the heading ?

    1. The High court decision is the only savior ? for taxpayers and also for the chartered accountants / tax consultants.

    2. Can you Please update through your newsletter / daily emails of the outcome of the High court cases in Gujarat, Delhi and Mumbai.

    3. Further can someone highlight the consequence of filing return of income in say Nov. 2014 alongwith Tax audit Report. what is the loss or penalty or consequence to the assessee ??

  21. S PRAKASH says:

    sir,
    you are right in saying that “it is observed that current government is no different from Previous Government as far as tax front is concerned”It is surprising that the famous advocate like Mr Arun Jetly who holds the finance ministry is not understanding the simple problems faced by the tax payers.The government expects the business community to pay tax promptly but in the same way they should be reasonable and fair in implementing the tax policies. Kindly remember CHANUKYA as to how the tax should be collected.Kindly make simple rules and policies for the taxation and make it more and more user friendly and free from certifications and reports.For all if we start approaching the court I do not think that we can achieve good things in the taxation front.

  22. N.K.Padhi says:

    The accusation is totally unjustified. Many of the CAs advise their clients to delay filing of returns and hide income. I have heard from a very senior CA that he advises his clients not to pay interest to banks before the 89 th day. And he speaks with pride !
    The common man has very strong views on the activities of CAs.

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