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Saturday, 27 September 2014

CBDT's Order U/s 119 Extending ROI Due Date For AY 2014-15

In addition to the Press Release, the CBDT's formal order dated 26.09.2014 u/s 119 of the Income-tax Act, 1961 extending the due date for filing the return of income from 30.09.2014 to 30.11.2014 is also available. The Order explains in detail the circumstances in which the aforesaid extension is granted.

It may be noted that the benefit of the aforesaid extension is NOT available to companies which have suffered a loss and which are not required to get their accounts audited u/s 44AB, non-working partners of partnership firms, charitable trusts etc.

Friday, 26 September 2014

CBDT extended due date of filing ITR (which requires TAR) to 30th Nov, but interest u/s 234A is leviable

CBDT Notification

North Block, TPL Division
New Delhi, the 26th September, 2014


Order under section 119 of the Income-tax Act, 1961

​Section 44AB of the ​Income-tax Act, 1961 ('the Act') read with rule 6G of the Income-tax Rules, 1962 ('the Rules') requires certain persons to file tax audit report in Form No.3CA/Form No.3CB along with prescribed particulars in Form No.3CD.  Vide Notification No. 33/2014 dated 25th July, 2014, the forms for filing tax audit report have been revised. As per section 44AB of the Act, the tax audit report has to be obtained and furnished electronically by 30th November of the Assessment year in case of an assessee who is required to furnish report under section 92E of the Act and 30th September of the Assessment year in case of other assessees.

2.​In view of the representations received by the Central Board of Direct Taxes ('the Board'), the due date for obtaining and furnishing of tax audit report under section 44AB of the Act for assessment year 2014-15 in respect of assessees who are not required to furnish report under section 92E of the Act has been extended from 30th September, 2014 to 30th November, 2014 vide Order No.133/24/2014-TPL dated 20th August, 2014 in exercise of power of the Board under section 119 of the Act.  It has been further clarified that the tax audit report filed during the period from 01.04.2014 to 24.07.2014 in the pre-revised forms shall be treated as valid tax audit report under section 44AB.

3.​After the extension of the due date for obtaining and furnishing of tax audit report under section 44AB of the Act, a number of representations have been received in the Board requesting for extension of due date for furnishing of return of income for the assessees who are required to obtain and furnish tax audit report under section 44AB of the Act and for whom the due date for furnishing return of income under section 139(1) of the Act is 30th September, 2014. Writ petitions have also been filed in various High Courts for directing the Board to extend the due date for furnishing of return of income from 30th September, 2014 to 30th November, 2014 in conformity with the extension of the due date for filing of tax audit report.

4.​In the High Court of Delhi, a writ petition No.5990/2014 has been filed on this issue.  However, before the pronouncement of judgement, the petitioner withdrew the writ petition on 23rd September, 2014.  The High Court of Madras passed interim order on 24.09.2014 in writ petitions No.25443 and 26306 to 26310 of 2014 and directed the Board to consider the request of the assessees in general and consider the extension of time for furnishing the return of income, in tune with the order passed by the Board in F. No.133/24/2014-TPL dated 20.08.2014. It has been reported that the High Court of Judicature at Hyderabad for the State of Telangana and the State of Andhra Pradesh disposed the writ petition No.28159 and 28627 of 2014 with a direction to the Board to dispose of the representation of the petitioners. The High Court of Bombay disposed of writ petition No.2492 of 2014 vide order dated 25.09.2014 and directed the Board to look into the practical difficulties of the petitioners and take a just and proper decision in this matter.

5.​The Gujarat High Court allowed Special Civil Application No.12656 of 2014 with Special Civil Application No.12571 of 2014 and vide judgement dated 22.09.2014 directed  the Board to modify the order under section 119 of the Act dated 20.08.2014 by extending the due date for furnishing the return of income to 30th November, 2014.  It has also been further stated in the said order that it would be open for the Board to qualify such relaxation by extending the due date for all purposes, except for the purpose of Explanation 1 to section 234A of the Act.

6.​In compliance to the judgement of High Court of Gujarat and after considering the representations made for extension of due date for furnishing of return of income in compliance with the directions of the other High Courts, the Board, in exercise of power conferred by section 119 of the Act, hereby extends, subject to para 7 below, the `due-date' for furnishing return of income from 30th September, 2014 to 30th November, 2014 for the assessment year 2014-15 for all purposes of the Act, in case of an assessee, who,

(i)​is required to file his return of income by 30th September, 2014 as per clause ​(a) of Explanation 2 to sub-section (1) of section 139 of the Income-tax Act, ​1961; and

(ii)​is also required to get his accounts audited under section 44AB of the Act or is ​a working partner of a firm whose accounts are required to be audited under ​section 44AB of the Act. 

7.​There shall be no extension of the "due date" for the purposes of Explanation 1 to section 234A (Interest for defaults in furnishing return) of the Act and the assessees shall remain liable for payment of interest as per the provisions of section 234A of the Act.

​8.​For removal of doubt, it is clarified that for an assessee (other than working partner of a firm which is required to obtain and furnish tax audit report), who is required to file its return of income by 30th September, 2014 but not required to obtain and furnish tax audit report under section 44AB, the due date for furnishing of return of income for assessment year 2014-15 remains as 30th September, 2014.

Fwd: CST FORM 9 FILING DATE EXTENDED TO 28/11/2014


M/s N.K. Goel & Bros.
cayashugoel.blogspot.com
Chartered Accountants
CA Yashu Goel
9899263490

Fwd: CST FORM 9 FILING DATE EXTENDED TO 28/11/2014


M/s N.K. Goel & Bros.
cayashugoel.blogspot.com
Chartered Accountants
CA Yashu Goel
9899263490

Gujarat HC Raps CBDT Over ROI Due Date Non-Extension Fiasco

All Gujarat Federation of Tax Consultants vs. CBDT (Gujarat High Court)

Strictures passed against the CBDT for seeking to take advantage of its own wrong and disregarding genuine hardship of taxpayers. Due date for filing ROI extended to 30.11.2014 subject to charge of s. 234A interest

The Petitioner filed a Writ Petition claiming that the action of the CBDT/ Government in issuing Notification dated 25.07.2014 to exercise the due date for filing the tax audit report u/s 44 AB but in not extending the due date for filing Income Tax Returns from 30.09.2014 to 30.11.2014 was arbitrary. It was pointed out that great prejudice was being caused to the taxpayers by the said action of the CBDT. HELD by the High Court:

(i) We are not impressed by the stand taken by the Revenue urging inter alia that the format of the tax audit report nowhere requires certification of the Tax Consultants or Tax Auditors in relation to the information to be furnished for which Tax Audit is conducted …. Though the filing of the return of income is the responsibility of the tax payer, that in no manner would make the Tax Auditors and the Consultants who are professionals any less concerned for correct computation of the income and true presentation of entire material before the Tax authorities;

(ii) The change of utility and non-availability of the new version till 20.08.2014 is the cause for the issue to have cropped up. The assesses cannot be put to the hardship nor can the professionals be made to rush only because the department chose to change the utility during the mid-year;

(iii) One of the main objectives of the computerization programme is to improve the efficiency and effectiveness of the tax administration. If the very computerization has caused genuine hardship to one and all concerned, CBDT ought to have paid heed to the repeated requests of all concerned in exercise of its statutory powers;

(iv) It would have been desirable for the CBDT to have considered the request for extension of the due date as a very peculiar situation has arisen portraying the genuine hardship to the assessee and the tax consultants;

(v) Non-collection of tax for a period of two months and possible loss of Rs.220 crore in terms of interest for a period of two months in the event the self-assessed tax not paid, appear clearly as the reasons in the foundation for CBDT to deny such extension. The Revenue cannot be permitted to take advantage of its own error or delay, by putting forth magnified figures of loss and thereby also possibly in the process gaining interest for late filing of return in complete disregard to requirement of efficient management;

(vi) The CBDT ought to have responded to the representation. Instead, it chose not to respond but later before this Court in no uncertain terms has termed such a request impermissible on the ground that the grievances are not sustainable. Therefore, considering the larger cause of public good and keeping in mind the requirement of promotion of justice, we chose to exercise the writ of mandamus directing the CBDT to extend the date of filing of return of income to 30.11.2014, which is due date for filing of the TAR as per the Notification dated 20.08.2014. Such extension is granted with the qualification that the same may not result into non-charging of interest u/s 234A.

Tuesday, 2 September 2014

Whether customized software is "production"?