2021 (2) TMI 621 - HC - Income Tax

Non filing of E-Appeal - seeking a direction to the respondents to accept manual return of income filed by the petitioner in view of a technical problem in online filing - prayer made is for a direction to respondent No.2 Central Board of Direct Taxes to make suitable amendment in the electronic Income Tax Return (ITR) utility so as to provide an option to the petitioner as to applicability of section 115JC - HELD THAT - We find that a similar writ petition was moved before this Court by an assessee earlier facing similar difficulty. Of course, in that case the assessee had not filed any representation before the CBDT highlighting his grievance, whereas in the case of the petitioner he has already made a representation but without any fruitful result. In Samir Narain Bhojwani Vs. Deputy Commissioner of Income-tax, Central Circle3(4), Mum 2019 (11) TMI 150 - BOMBAY HIGH COURT this Court while granting liberty to the petitioner to make a representation to the CBDT further directed that till such time CBDT took a decision on the petitioner's representation, respondents would not act upon the electronically filed return of income so as to initiate any coercive recovery proceedings. Since petitioner has already filed a representation before the CBDT on 21.01.2021 alongwith income tax return in physical form, we direct that pendency of the writ petition would not be a bar to take a decision on the said representation of the petitioner. In the meanwhile, respondents shall not take any coercive action against the petitioner.

Summary

Issues:
1. Acceptance of manual return of income due to technical problem in online filing
2. Amendment in electronic Income Tax Return (ITR) utility to provide an option regarding section 115JC of the Income Tax Act, 1961

Analysis:

1. The petitioner filed a writ petition seeking a direction for the respondents to accept a manual return of income due to a technical problem in online filing. The petitioner also requested a direction to the Central Board of Direct Taxes (CBDT) to amend the electronic ITR utility to provide an option regarding the applicability of section 115JC of the Income Tax Act, 1961. The court noted a similar case where an assessee faced a similar difficulty but had not filed any representation before the CBDT. In that case, the court granted liberty to make a representation to the CBDT and directed that no coercive recovery proceedings be initiated until a decision was made by the CBDT. However, in the present case, the petitioner had already made a representation to the CBDT without any fruitful result. The court directed that pending the decision on the petitioner's representation, no coercive action should be taken against the petitioner by the respondents.

2. The petitioner had filed a representation before the CBDT along with the physical income tax return on 21.01.2021. The court directed that the pendency of the writ petition would not prevent a decision on the petitioner's representation. It was further ordered that in the interim, no coercive action should be taken against the petitioner by the respondents. The matter was adjourned to 1st April, 2021 for further proceedings. The court's decision aimed to protect the petitioner from any coercive recovery actions until a decision was made on the representation submitted to the CBDT, ensuring fairness and due process in addressing the technical issues faced by the petitioner in filing the income tax return.