CA Sandeep Kanoi
ICAI President CA. K. Raghu has shown Happiness over extension of Tax Audit Report Due Date in his Messages to its member dated 22.08.2014. In his Message Mr. CA. k. Raghu has failed to take into account the anguish of fellow members over extension of Tax Audit Report Due date without extension of Income Tax Audit Report Due Date. In his message Mr. Raghu has further not mentioned, If ICAI is working or taking any step towards getting this anomaly removed, Which implies that ICAI is not taking any step to get the ITR due date extended and happy with half hearted step of CBDT.
It is to be noted that ITR cannot be filled without completion of Tax Audit Report as Computation of Income has to take into account the disallowances and adverse comments made by the Tax Auditors. In the absence of Extension of due date of ITR, extension given by CBDT is like Giving with one hand and taking with the other.
Tax Payers and Tax Professionals across the County are not happy with CBDT move to extend due date of Tax Audit Report without simultaneous extension of Due date of Income tax Return Filing. Consequence of such move can be read on following link :- Consequences of Non Filing of ITR on or before 30.09.2014
It has further come to our knowledge that many of the Members of ICAI are in the process of Filing PIL in High Court to get this anomaly removed. Last year too CBDT has initially Extended Only Due date of Tax Audit Report without simultaneous extension of due date of Income Tax Report but later it has extended due date of ITR to match the same with extended due date of Tax Audit Report.
CA Sudhir Halakhandi from Rajasthan says that “ The central Board of Direct taxes by extending the date of filing of TAR without extending the date of filing of Income Tax return have produced a “round square” because practically it is not possible to file ITR without completion of Tax audit. Even the system of Income tax law and the format of ITR do not permit it and date of filing under section 44AB is linked with the date of filing of ITR u/s 139(1). This is all unnecessary meddling with Law which is not a good sign for the future of Direct taxation in India and also it is against the declared policy of the lawmakers “rationalization and simplification of taxation Laws”.”
The changes in the TAR are not so important and urgent to introduce them in the middle of the year and this the basic reason for controversy which has now been exaggerated by the law makers by keeping the date of ITR before the date obtaining and furnishing of tax audit report.
Further there was a blackout on the income tax site for continuous 25 days due to the fact that there was no utility to furnish TAR from 25th July 2014 to 20th Aug 2014 and this should be the sole reason to extend the date of ITR.
Tax Payers and Professionals wants CBDT to remove this anomaly and extend the due for Assessee covered under tax audit provisions for A.Y. 2014-15 to 30th November 2014 from 30th September 2014.
Extract of ICAI Presidents Message is Reproduced below :-
Our Recommendation on Tax Audit Accepted
The CBDT has revised the format of Tax Audit report. However, we felt that despite all the good intent of the CBDT, the timing of the revision was not convenient. Hence we represented to Hon’ble Finance Minister, Revenue Secretary, and Chairman CBDT, expressing our concerns. I am happy to inform you that acting on our recommendation, the CBDT has now extended the due date for obtaining and furnishing of Tax Audit report under Section 44AB for Assessment Year 2014-15 in case of assesses who are not required to furnish report under Section 92E of the Act from 30th September 2014 to 30th November 2014. The CBDT has also clarified that the Tax Audit report under Section 44AB of the Act filed during the period from 1st April 2014 to 24th July 2014 in the pre-revised Forms shall be treated as valid Tax Audit report furnished under Section 44AB of Income-tax Act, 1961.
In the meantime, to enable our members to perform this onerous task efficiently and effectively, we are revising our Guidance Note on Tax Audit under Section 44AB of Income-tax Act, 1961 which will be made available to the members very soon. I wish you all the success in most effective completion of Tax Audits.