2021 (5) TMI 978 - HC - Income Tax

Permission to file paper return - justification for not fling electronic return of the income tax - HELD THAT - The Petitioner is permitted to file paper return for the assessment year 2020-21 before 31st May, 2021 subject to the further orders that may be passed by this court at the stage of admission or thereafter till this writ petition is finally decided. All contentions of the parties are kept open. It is made clear that whether such paper return proposed to be filed by the Petitioner is incompliance with the Income Tax Act or Rules or not is also kept open. The Petitioner would be at liberty to file rejoinder to the affidavit in reply dated 20th May, 2021 filed by the Respondents within a period of two weeks from today and serve a copy thereof upon the Respondents Advocate.

Summary

Issues:
Petitioner seeks permission to file income tax return in paper form for 2020-2021 and challenges the validity of Rule 12 of Income Tax Rules, 1962.

Analysis:

Issue 1: Permission to file income tax return in paper form for 2020-2021
The Petitioner sought ad-interim relief to file the return of income in paper form for the assessment year 2020-2021 and to treat it as valid until the final disposal of the petition. The Petitioner also requested permission to file the return in electronic form after the audit, subject to the final disposal of the petition. The Court granted permission for filing the paper return for the assessment year 2020-21 before 31st May 2021, keeping all contentions open for further consideration at the stage of admission or thereafter.

Issue 2: Challenge to the validity of Rule 12 of Income Tax Rules, 1962
The Petitioner contended that Rule 12 of the Income Tax Rules, 1962 is ultra vires the provisions of the Income Tax Act, 1961 and the Constitution of India, arguing that it has no legal effect. The Petitioner cited various reasons for its inability to file an electronic return of income tax within the specified time. The Court did not delve into the issue of whether the Petitioner was justified in not filing an electronic return, leaving it open for determination at a later stage. The Court emphasized that the validity of the paper return to be filed by the Petitioner would also remain open for consideration.

Conclusion:
The High Court of Bombay allowed the Petitioner to file a paper return for the assessment year 2020-2021 before 31st May 2021, subject to further orders. The Court refrained from deciding on the justification of not filing an electronic return and kept all contentions open for future consideration. The challenge to the validity of Rule 12 of the Income Tax Rules, 1962 was acknowledged, and the Court maintained that the compliance aspect would be addressed at a later stage.