CA Sudhir Halakhandi
The date of obtaining and furnishing of tax audit report u/s 44AB has been extended from 30th Sept. 2014 to 30th Nov. 2014 and while issuing the orders under section 119 the Central Board of Direct Taxes has created one more confusion which is related to the extension of date of ITR. Though this is not the subject matter of this write up, but we are waiting for a fresh order in this respect since the date of obtaining and submission of audit report is governed by the date of filing of ITR which is given in section 139(1) hence now they have to issue a fresh order to extend the date of filing of ITR which will automatically extend the date of furnishing of audit report. There is a concern from the legal and taxation sector in this respect but one point is clear that one cannot file his ITR without completion of audit hence this is a technical error which they have to rectify in ASAP and there is no other way left in this respect but this a big question mark on the “quality”. They have introduced the schema of the New audit report on the Income tax site today i.e. 21st. Aug.2014 and please remember that there were 10 changes in the schema in 2013 but the CBDT was not ready to extend the date even by a single day and now there is an extension of 2 Months at once, so there is a change in “Attitude” also which may be result of pressure of Representations submitted by CAs, Trade and Industries in large numbers.
Let us come to the point , this extension is not the solution of the problems which were enumerated by us in our representations submitted to the CBDT and we have specifically emphasized the problem of the assesses whose audits were completed before 25th July 2014 but not “uploaded” on the site of the Income tax department . This is general practice and sometimes a compulsion also and numbers of these audits are very large, may be in lakhs, including the Banks, insurance companies and other entities. The problem is created by “midyear” introduction of fresh formats which was not only sudden but untimely and against the promised declared policy of lawmakers “Simplification and rationalization of Taxation laws”.
The ICAI, regulatory body of chartered accountants in India , established under the Act of parliament , has also shown a concern towards these audits mentioned above and since the number is very large, the problem should be understood by the lawmakers and a final decision should have been taken after solving the problems of these audits but instead of this a simple solution is made by extending the date for 2 Months. A big question arises here why ICAI is not having the last say in audit matters and why this apex body of auditors not taken into confidence before introduction of these formats in the middle of the year.
Here it should be noted that we are talking about the audits which are completed before 25th July 2014 but “not uploaded” and since out of 180 days total allotted to complete the audits under section 44AB , there were 116 days passed up to 25th July 2014, the number the these audits is too large.Online GST Certification Course by TaxGuru & MSME- Click here to Join
The “midyear and sudden” changes in law and introduction of fresh forms are not natural, prudent, reasonable and logical actions and these should strictly be checked forever. How they will compare the reports which are uploaded before 25th July 2014 and on or after 21st Aug 2014(the day on which new schema was introduced on IT site) because both are in different formats.
We have experienced 10 Continuous changes in the schema of TAR in 2013 so this possibility of same happenings cannot be ruled out this year also.
A simple, logical, reasonable solution is that to postpone the applicability these Formats and made them applicable for the assessment year 2015-16 to save lakhs of these assesses mentioned above from the problems and further extend the date for only one month with Old TAR to compensate the 25 days blackout of the Income Tax site.
-CA Sudhir Halakhandi, -CA Abhas Halakhandi
Halakhandi And Company, Chartered Accountants
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