Advocate C P Chugh

We all are aware of the Trauma of furnishing TAR before 30th Sep, the un-admitted  service validation errors,  seeking justice from the Honb’le DHC and subsequent relief in furnishing TAR and ITR.

The much hyped extended due date for electronically furnishing of TAR and consequent ITR would also come to an end today.  Before it is too late, let us examine the pros and cons of such extension. I have tried to make a beginning. Suggestions are always welcome.

In this article I am trying to analysis the Pros and Cons of relief granted by order of 24th October.

Section What does it say Consequence

there of

 

How much relief the order provides
234A Interest for Default s in Furnishing return of Income.

(1)   Where the return of income for any assessment year under sub-section (1)….of section 139………

Is furnished after the due date ………the assessee shall be liable to……………

 

1% interest on defaulted tax due.

 

As per order since the TAR and ITR if uploaded electronically on or before 31st Oct shall be deemed to have been furnished within the specified due date, Interest shall not be chargeable

 

271B Failure to get accounts audited

If any person fails to get his accounts audited in respect of any previous year or years relevant to assessment year or furnish a report of such audit as required under section 44AB the Assessing Officer shall direct that such person………….

Penalty of ½% of Turnover or Rs. 150000.00 whichever is less. As per order since the TAR and ITR if uploaded electronically on or before 31st Oct shall be deemed to have been furnished within the specified due date, Penal action is not called for.

 

10A, 80I-A

80I-B

80I-C

10A(1)A. Provided that no deduction under this section shall be allowed to an assessee who does not furnish a return of his income on or before the due date specified under sub section (1) of section 139.

 

80AC. Where in computing the total…………………………..

Unless he furnishes a return of his income for such assessment year on or before the due date specified under sub section (1) of section 139.

 

Deduction as claimed  not be allowed and added back to returned income chargeable to tax at prescribed rates. As per order since the TAR and ITR if uploaded electronically on or before 31st Oct shall be deemed to have been furnished within the specified due date, disallowance is not called for.

 

 

 

 

 

 

 

 

80 and

139(3)

Submission of return of Loss.

80. Not  with standing  any thing contained in this chapter, no loss which has not been determined in pursuance of a return filed…………….of sub section (3) of section 139…………………..

 

139(3) If any person who has sustained a loss ………………

he may furnish within the time allowed under sub section (1) of section 139 a return of  loss………………………….

Loss sustained if any is allowed to be carried forwarded if the return is not furnished by specified due date.  

As per order since the TAR and ITR if uploaded electronically on or before 31st Oct shall be deemed to have been furnished within the specified due date, loss if any sustained shall be allowed to be carried forwarded in accordance with other provisions of the law. (See Note below)

 

43B Certain Deductions to be only on actual payments

43B. Not withstanding…………

a)………………………………..

b)……………………………….

c)………………………………..

d)……………………………….

e)……………………………….

f)……………………………….

Shall be allowed………………………

………………………………..

Provided that nothing contained …………………….

which is actually paid by the assessee on or before the due date applicable in his case for furnishing the return of income

……………………………….

All sums specified in sub section (a) to sub section (f) of section 43B, if not paid with in the time allowed to him under sub section (1) of section 139 are disallowed and added back to income. Since the order of 24th October did not extend the due date specified under sub section (1) of section 139, failure to deposit tax with in the specified time i.e. on or before 30.09.2013 may attract disallowance.  (Please See Note below)
40a(ia) (ia) any interest, commission

Or brokerage………………….

………………………………….

has not been paid on or before the due date specified under sub section (1) of section 139.

Any expenses incurred on which tax was deducted but not deposited on or before the due date specified under sub section (1) of section 139 is liable to be disallowed and added back to the returned income. Since the order of 24th October did not extend the due date specified under sub section (1) of section 139, failure to deposit with in the specified time may attract disallowance.   (Please See Note below)

Editor’s  Note

1. As per order of CBDT, the tax authorities are directed to treat return filed on or before 31.10.13 as if filed within due date that is 30.09.13. On plain reading of the Order, it cannot be said that the ‘due date’ has been extended to 31.10.2013. There is only relaxation that the report and return shall be deemed to have been filed within due date u/s 139 (1). The order has  Therefore, a doubtful situation remains about applicability of date of 31.10.13 as due date under Section.43B and section 80 read with section 139(3) and section 139(1). As per general understanding of tax payers and general tax practioners, the due date has been extended to 31.10.13. This view is a likely view and a view in favor of assessee must be adopted.  Accordingly in our view all benefit which were available to the Assessee had e filed his return on or before 30th September will also flow to him on filing of Return on or before 31.10.2013 and also payment which are allowed on payment before the due date of filing return or before filing of Return of Income will also flow to the Assessee if he pays the same on or before filing the return of Income but within the extended due date i.e. 31.10.2013.

I have tried to examine and analysis provisions relating to furnishing of belated returns. Readers are welcome to suggest any other consequences which I have omitted to include in this preview.

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0 responses to “Pros and Cons of extension of due date for furnishing of TAR / ITR”

  1. Bhargav says:

    But if assesse is Private limited and not liable to tax audit, but he has loss to carry forward then whether return uploaded on 31st october be treated as return under 139 (1)

  2. Amol Sawarkar says:

    Can revised return be filed if return is submitted by 31st October?

  3. Abhishek ain says:

    But if assesse is Private limited and not liable to tax audit, but he has loss to carry forward then whether return uploaded on 31st october be treated as return under 139 (1)

  4. Viji Rajendran says:

    Good effort – extends to clarity in thinking and understanding such orders, notifications . Thumbs Up!

  5. CA. S.K.RATHI says:

    Discussion and analysis given by author is very relevant to the all Income Tax Practitioner engaged in filing returns.

    This year CBDT did’t approached in practical manner , which was not expected from.
    It should have looked into all the aspect before introducing Notification 24th October, 2013.

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