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.

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  1. 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

  2. ANIL BEDI says:

    CBDT has not yet come out with the required notification for extension of due date in spite of Judgements by various High Courts. This is height of high headedness on part of bureaucracy. It seems that CBDT is not even bothered about contempt of Court.

  3. vswami says:

    As rightly apprehended by a reader, if were to go by the basic principle of court jurisdiction not extending beyond / not binding other than in that State,the other states have to await for further developments; and the next move from the cbdt. Nonetheless, the point is whether in any such matter of common concern to the ‘whole of India’, the court ruling be so construed and narrowly applied as to give rise a new question – ‘discrimination’ between taxpayers in one state and the rest. Seemingly, no option except to wait and watch !

  4. g.j.murty says:


  5. kunjbihari sharma says:

    I firtly congratulate to overall team work of Gujarat CAs .The bueaorocracy of Indian Administration Services who passed the order ,firstly you submit ITR and then submit Audit Report after 30.09.2014,is funable decision.Have they any better Idea after this joking decision.
    Similarly ITAT also covered this working,that CAs are not perfectly done their jobs,I asked from this decision,Is it better decision as legal authority.

  6. Ramesh Kumar Thakur says:

    Dear Sir,
    I am also with you my honorable Lakhotia jee, and I would like to Congratulate CA Sudhir Halakhandi and CA Shiv Khatry who come up with the Mission TAR2014 – See more at:
    Thanks a lot both personality, and saluting the JUSTICE
    Ramesh KumarThakur,
    Advocate, Income Tax & Sales Tax

  7. Krishna says:

    1st of all every taxpayer must congratulate Shri CA Sudhir Halakhandi and CA Shiv Khatry & Their team , for their efforts on this issue. This Judgement would gives the more responsibility on Govt Officials before issuing such mid term orders.

  8. S PRAKASH says:

    thanks TO tax Guru FOR HIGHLIGHTING THE ISSUE POINT BY POINT AND BRINGING AWARENESS AMONG THE PROFESSIONALS. Let us hope the CBDT will act wisely at least now and issues a notification accordingly.Let the CBDT take this as it has taken in the matter of CPC in the Hon Delhi High Court.

  9. CA Deepak Soni says:

    This is classical example of arrogance and ignorance on the part of Indian bureaucracy.Is Govt of India so shortage of the funds that it can not wait for two months for the collection of hardly 10 % of the revenue collection because 90 % of the taxes have to be paid before 15 March ? CBDT should not bring in the changes in the mid of the year.It has arrogated itself to such an extent that it does never bothers for the inconvenience on the part of the assesses while in bringing in the draconian and whimsical changes in the rules and forms throughout the year and at the same time has grossly failed in updating its records creating the gross harassment to the assessees.

  10. R Ratan says:

    This shows adamant and unrealistic view taken by the CBDT in keeping the dates of payment of taxes unchanged and at whose cost? I wish CBDT takes similar adamant view in directing to its Officers to issue refunds in time, in passing the orders to application u/s 154 for adjustment of unrealistic demands raised and issue of refunds as per section 154(8) and forgiving credit of small TDS amounts not appearing in Form 26AS for no fault of the taxpayers. Will Tax Practitioners Associations come forward and take this issue also at PIL platform.

  11. Gaurav Mohan says:

    Please confirm (1) If the Hon. Gujarat HC judgement is applicable for the state of Uttar Pradesh (2) Is the order for extending date for filing return to 30/11/2014 applicable to the returns of loss / nil profit. Thanks in advance….

  12. R S SHAH says:

    Good to note that the efforts of active and vigilant CAs by filing writ petitions brought relief to thousands of assesses, and of course to CAs and tax advocates and tax professionals.
    The mute point is that interest u/s. 234A ( int on SA TAX) is still payable inspite of the extension ( Unless on estimated basis S A Tax) is paid.
    It would not effect those who do not have to pay SA Tax or who has refund to claim.
    The biggest relief is for those with c/f. loss and / or those who file revise return.
    Yes, as rightly said by some others, the petition in various high courts should be disposed off TODAY. so that no time is wasted in anxiety and confusion of the status.
    I do not think that CBDT circular is needed anymore. if at all, a claificatory circular could be used to avoid multiple litigation at a latter stage.


    Case is still pending in various high courts. It will be iteresting to see, if any high court taked different view. Delhi high court has dismissed case as pettioner seek withdrawal of case.
    What if CBDT issues notification for extension of date in gujrat only as per Gujrat high court order?

    I am of opinon that matter is still open and not closed.

  14. M V S N SHARMA says:

    As per the Gujarat High Court order, if, there are income tax dues and Return of Income is not filed by 30.09.2014, Interest under section 234A for not filing the return on or before the due date is applicable.Therefore, the assessees who have cash crunch, should see to it that Return of Income is filed by 30.09.2014 to avoid interest u/s 234A. Interest under sections 234B & 234C are unavoidable anyway.

  15. sudarshana says:

    It is not only the ‘time’. Amount of mandays of so many people and corresponding sum in terms of money.
    It must be said with great regrets that the Administration has failed miserably to respond positively to the aspirations adn promises made by PM and FM. The CBDT needs a court the decide and direct it to extend. Very sad state of affairs. I call upon the Finance Ministry as alsp PMO to fix the respnnsibility for the CBDT not taking this decision before HC directing it and take strong action.
    Same is the case with number of cases in CATs/HCs/Suprement Courts wherein the govt. agrees to implement only when defamation case is filed by the litigents.
    I think the administration has failed the Prime Minsister miserably, despite PM desire to bring it radical changes for the better.

  16. AMIT S says:

    Same case to be heard by different courts and common party to all case is CBDT…
    Imagine the time consumed by different judiciary on the same issue… instead having all petitions to be combined and single decision…

    Govt says reduce the cases … if Govt really wants to reduce the cases and save some time for many people and judiciary then why no steps were taken for such issues… Hats off to CBDT for wasting so much time of everyone…

  17. AMIT S says:

    Good to know the Court took a midway and balanced the situation..
    but what will be the impact .. will CBDT extend the due date according to the High Court decision only in that states where the decision is in favour of petitioner?
    Or will it be For all states? if it will be for all states then whats the point of filing it in different courts? instead combining all the petitions from all states and giving decision..

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