2020 (10) TMI 994 - HC - Income Tax

Mandatory filing electronic return of income - Prayer to declare that Rule 12 of the Income-tax Rules, 1962 requiring such mandation is ultra vires the provisions of the Income-tax Act, 1961 and the Constitution and, hence, void and of no legal effect - as prayed when it is not possible for the Petitioner to file electronic return of income for reason beyond the control of the Petitioner, the Petitioner is entitled to file the return of income in paper form - HELD THAT - Considering that the challenge in the petition is to the vires of Rule 12 of the Income-tax Rules, 1962, issue notice to the Additional Solicitor General of India. Stand over after eight weeks. This order will be digitally signed by the Private Secretary of this Court.

Summary

Issues:
Challenge to the vires of Rule 12 of the Income-tax Rules, 1962 regarding mandatory electronic filing of income tax returns for the assessment year 2019-20.

Analysis:

Issue 1: Challenge to the vires of Rule 12 of the Income-tax Rules, 1962

The petitioner sought various reliefs, including a declaration that Rule 12 of the Income-tax Rules, 1962, mandating electronic filing of income tax returns for the assessment year 2019-20, is ultra vires the Income-tax Act, 1961, and the Constitution. The petitioner also requested permission to file the return in paper form due to reasons beyond their control. The court, after hearing both parties, allowed the petitioner to file a paper return for the assessment year 2019-20 before 31st July 2020, with the matter to be further considered at the admission stage of the writ petition. The petitioner's senior counsel argued that Rule 12 is ultra vires the Income-tax Act, 1961, as it mandates electronic filing of returns. On the other hand, the Revenue's standing counsel cited a Supreme Court judgment and contended that the challenge was vague, insufficient, and delayed. The court issued a rule on admission and directed the Additional Solicitor General of India to be notified, with the matter to be heard after eight weeks.

This detailed analysis covers the issues involved in the legal judgment, outlining the arguments presented by both parties and the court's decision regarding the challenge to the vires of Rule 12 of the Income-tax Rules, 1962.