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2021 (1) TMI 792 - HC - Income TaxExtension of due date for filing income tax returns for the assessment year 2020-21 till 31st March, 2021 and to extend the due date for filing tax audit reports for the said assessment year to 28th February, 2021 - COVID- 19 pandemic and lock down difficulties - HELD THAT - We find from the order dated 11th January, 2020 passed by the CBDT under section 119 of the Act that across the board three extensions of the due dates have been granted. In so far filing of tax audit report is concerned, the original due date was 30th September, 2020, which was first extended to 31st October, 2020, thereafter to 31st December, 2020 and now to 15th January, 2021. In respect of filing of income tax return in those cases where tax audit report is required to be filed the original due date was 31st October, 2020 which was first extended to 30th November, 2020, thereafter to 31st January, 2021 and finally to 15th February, 2021. Thus, we find that CBDT had considered the evolving situation in the country and thereafter, had extended the due dates on three occasions. Now CBDT says that filing of audit reports and income tax reports cannot be delayed indefinitely. Therefore, a line has been drawn that no further extension of the due dates would be granted. Power exercised by the CBDT under section 119 of the Act is discretionary. On careful consideration of the order passed by the CBDT on 11th January, 2021 under the said provision, we are of the considered view that it cannot be said that CBDT had failed to exercise its discretion or that CBDT had acted in an arbitrary or unreasonable manner in refusing to grant further extension of the due dates. We therefore do not find any good ground to invoke our writ jurisdiction under Article 226 of the Constitution of India to direct CBDT for further extension of the due dates. Having regard to the above, we are not inclined to entertain the writ petition.
Issues Involved:
1. Extension of due dates for filing Income Tax Returns (ITR) and Tax Audit Reports (TAR) for the Assessment Year (A.Y.) 2020-2021. 2. Adequate time for taxpayers and tax practitioners to comply with tax filing requirements. 3. Alleged arbitrary amendments to Income Tax Rules and delayed availability of utilities/forms. Detailed Analysis: 1. Extension of Due Dates for Filing ITR and TAR: The petitioners sought an extension of the due dates for filing ITR and TAR for A.Y. 2020-2021, citing the COVID-19 pandemic as a significant disruption. The original due dates were extended multiple times by the Central Board of Direct Taxes (CBDT), with the final extensions being to 15th January 2021 for TAR and 15th February 2021 for ITR. The court noted that the CBDT had already extended the deadlines three times in response to the pandemic, showing a proactive approach. The extensions were from 30th September 2020 to 15th January 2021 for TAR and from 31st October 2020 to 15th February 2021 for ITR. The court found that the CBDT had considered the evolving situation and decided that no further extensions would be granted to maintain the tax filing discipline and ensure timely tax collection. 2. Adequate Time for Tax Compliance: The petitioners argued that the forms and utilities for filing returns were made available late, and the instructions were voluminous, justifying further extensions. They requested a clear period of 183 and 214 days for preparing and submitting the prescribed reports and forms, respectively. The court acknowledged the petitioners' grievance but noted that the CBDT had already extended the deadlines multiple times and provided sufficient time for compliance. The court emphasized that further delays would affect the government's revenue collection and its ability to carry out relief work during the pandemic. 3. Alleged Arbitrary Amendments and Delayed Availability of Utilities: The petitioners highlighted amendments to the Income Tax Rules, 1962, and the delayed availability of utilities/forms as additional reasons for seeking an extension. They argued that these changes, particularly the additions to section 115BAA of the Act, were introduced late and caused significant compliance challenges. The court observed that the changes made to the forms were minor and did not have a substantive effect. It also noted that the CBDT had extended the deadlines considering the overall situation. The court found no evidence that the CBDT had acted arbitrarily or unreasonably in refusing further extensions. Conclusion: The court concluded that the CBDT had exercised its discretion appropriately under section 119 of the Income Tax Act, 1961, and had not acted in an arbitrary or unreasonable manner. The court decided not to invoke its writ jurisdiction under Article 226 of the Constitution of India to direct further extensions of the due dates. Consequently, the writ petition was dismissed without any order as to costs. Final Order: The writ petition was dismissed, and the court emphasized that all concerned parties would act on the digitally signed copy of the order.
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