2018 (10) TMI 1040 - HC - Income Tax

Extension of Due Date of filing of Income Tax Return of Tax Audit Cases - one hand, though the date has been extended for filing Income Tax Return of Tax Audit Cases but on the other hand, levy of interest under Section 234-A has not been amended - Held that - Once the date of filing of Income Tax Return has been extended, there is no justification for not extending the date and charging of penal interest for filing Income Tax Return within time. Sri Asit Kumar Chaturvedi, learned Senior Counsel assisted by Sri Anand Dwivedi, learned Counsel for the Union of India (respondent no.1) and Sri Alok Mathur, learned Counsel for respondents no.2 and 3 pray for and are granted four weeks time to file counter affidavit. Rejoinder affidavit, if any, may be filed within two weeks thereafter. List thereafter.

Summary

Issues:
1. Extension of due date for filing Income Tax Return of Tax Audit Cases.
2. Levying of interest under Section 234-A of the Income Tax Act despite the extension of the filing date.

Analysis:
1. The petitioner sought a mandamus to extend the due date for filing Income Tax Return of Tax Audit Cases from 15.10.2018 to at least 31.10.2018. However, the Central Board of Direct Taxes had already extended the filing deadline to 31.10.2018 on 08.10.2018, rendering the petitioner's prayer moot. The court noted that the extension had been granted, making the initial prayer unnecessary due to the subsequent official order.

2. Despite the extension of the filing deadline, the petitioner raised concerns about the continued imposition of interest under Section 234-A of the Income Tax Act, as per an order dated 24.09.2018. The petitioner argued that the extension of the filing date should logically entail a waiver or amendment to the interest levied for late filing. The court acknowledged the validity of this argument, emphasizing that once the filing deadline is extended, there should be no justification for maintaining the original penalty provisions for filing within the initial timeframe.

3. The learned Senior Counsel for the Union of India and other respondents were granted four weeks to file a counter affidavit in response to the petitioner's contentions. Additionally, the petitioner was allowed two weeks thereafter to file a rejoinder affidavit. The court scheduled the matter for a subsequent listing post these filings, indicating a procedural progression for further consideration and resolution of the issues raised in the case.