CA Sandeep Kanoi
CBDT has vide Notification No. 33/2014 dated 25/07/2014 Introduced mid year changes in Tax Audit Report format in form 3CD with lots of changes and additional reporting requirement. CBDT made the revised format applicable wef 25.07.2014 i.e. the date from which the new form been notified. Utility for revised Tax Audit report format been released after 27 days of Notification of new Tax Audit Report Report format on 21.08.2014.
Taxpayer, Tax Professionals and others concerned with Tax Audit Report has opposed the mid year changes in Tax Audit Report Format and for no time given to understand and implement the revised reporting requirements. After lot of Hue and cry from trade, taxpayers and Various Institutions, CBDT has half halfheartedly Extended the due date of Filing Tax Audit Report to 30.11.2014 without extending the due date of Income Tax Return (ITR) Filing vide Order No. F.No.133/24/2014-TPL dated 20.08.2014 .
Extension of due date of Tax Audit Report without simultaneous extension in due date of Income Tax Return (ITR) was of no consequence. As ITR is generally prepared only after finalisation of Accounts and preparation of Tax Audit Report. Against this anomaly cases been filed in various high courts around the country by tax practitioners and trade unions seeking extension of due date of ITR at par with Tax Audit Report and deferment of Revised Tax Audit Format to A.Y. 2015-16. To view status of such appeals view –Status of ITR / TAR Due Date extension / deferment cases Pending before Various HCs
CA Rajni M. Shah and All Gujarat Federation of Tax Consultants has also filed appeals with Gujarat High Court vide SCA No. 12571/2014 and 12656/2014.During Hearing CBDT opposed the extension of due date of ITR on the ground that it will lead to revenue losses to the government. While petitioner has stressed due date of ITR must be extended to 30.11.2014 as Preparation of ITR and Computation of tax liability is not possible without preparation of Tax Audit Report first. Read Interview of CA Rajni Shah and CA Mahesh Kumar – The Interview with Tax Audit Report Petitioners
After Considering the argument of both the parties Court has suggested to Come up with a proposal which safe guard the interest of revenue as well provide relief to the taxpayer from practical difficulties faced by them because of extension of Tax Audit Report due date without simultaneous extension of due date of ITR.
During hearing Court has also sought affidavit from CBDT that no penalty or interest would be levied for revision of return by the taxpayer, if any, pursuant to such tax audit which CBDT has provided.
During hearing on the appeal on 22.09.2014 Honourable Gujarat High Court has directed the CBDT to extend the due date for filing of return of income to 30.11.2014 for A.Y. 2014-15 for all purposes, inter-alia, carry forward of losses, allowability of deductions under Sections 80-IA, 80-IB, 80-IC, 80-ID and other sections which requires return to be filed before due date. However, such extension has been granted subject to charge of interest under Section 234A (For delay in filing of Return of Income) for the period commencing from 01-10-2014 and up to the actual date of filling the return of income.
Interest under section 234A will not be levied if taxpayer covered under tax audit provisions pays the tax on or before 30.09.2014 despite filing of return after 30.09.2014.
Similar matter will come up for hearing today (23.09.2014) before Bombay, Rajasthan and Gujarat High Court for hearing. For update on the status of the same visit – –Status of ITR / TAR Due Date extension / deferment cases Pending before Various HCs
At Taxguru we would like to Congratulate CA Sudhir Halakhandi and CA Shiv Khatry who come up with the Mission TAR2014 Deferment vide a group created on Whatsapp and for bringing the noted chartered accountants from around the country together and making the mission a success.
We expect court detailed court order on the subject today.
Do you think CBDT should extend Tax Audit Report and relevant ITR Due Date? Please Comment, Vote, Retweet and Like.— Tax Guru (@taxguru_in) September 18, 2018