2022 (1) TMI 609 - HC - Income Tax

Interest u/s 234A and 234B - late fees under Section 234F and penalty under Section 271B - HELD THAT - We once again impress upon the respondent to attend to the technical glitches, which are being experienced in the Portal at the earliest. The Portal is something which is within the control of the respondent and if there are any technical problems in the same, it is only the respondents, who can take care of such problems. At this stage, Mr. Devang Vyas, the learned Additional Solicitor General of India received information that CBDT has issued a Circular No.01/2022 dated 11.01.2022 extending the timeline for filing the income tax return and various reports of audit for the A.Y. 2021-22. The due date of furnishing of Report of Audit under any provision of the Act for the Previous Year 2020-21, which was 30th September, 2021, in the case of assessees referred in clause (a) of Explanation 2 to subsection (1) of Section 139 of the Act, as extended to 31st October, 2021 and 15th January, 2022 by Circular No.9/2021 dated 20.05.2021 and Circular No.17/2021 dated 09.09.2021 respectively, is hereby further extended to 15th February, 20222. The due date of furnishing of Report of audit under any provision of the Act for the Previous Year 2020-21 which was 31st October, 2021, in the case of assessees referred in clause (aa) of Explanation 2 to sub-section (1) of Section 139 of the Act, is hereby extended to 15th February, 2022. Post this matter on 08.02.2022 to enable the respondents to file their counter. One copy of the counter shall be furnished to the learned counsel appearing for the writ applicants well in advance. The further progress in the matter with regard to the technical glitches shall be reported to us on the next date of hearing. One copy each of this order shall be furnished at the earliest to Mr. M.R. Bhatt, the learned senior counsel and Mr. Devang Vyas, the learned Additional Solicitor General of India for its onwards communication.

Summary

Issues:
1. Difficulty faced by the assessee in uploading audit report for income tax return filing.
2. Grievance regarding technical glitches in the Portal affecting audit report upload.
3. Request for extension of deadline for filing audit report.
4. Concerns about penalties, interest, and late fees due to delayed filing.
5. Need for resolution of technical issues in the Portal by the authorities.

Analysis:

1. The judgment addresses the challenges encountered by the assessee in uploading the audit report for filing income tax returns. The court acknowledges the difficulties faced by the assessee and considers the impact of Circular No.17/2021 issued by the Ministry of Finance Department of Revenue, CBDT, which has caused grievances due to certain clarifications provided.

2. The counsel representing the writ applicants highlights the mandatory requirement of generating the Unique Document Identification Number (UDIN) for audit reports since 01.07.2019. The technical glitches in the Portal have made it arduous for Chartered Accountants to upload audit reports even after generating UDIN, potentially leading to interest, late fees, and penalties under various sections of the Act if returns are not filed on time.

3. The senior counsel for the respondents contests the apprehensions raised by the writ applicants, assuring to provide a detailed response to clarify the actual situation. The court emphasizes the necessity for prompt resolution of any technical issues in the Portal to facilitate smooth uploading of audit reports and timely filing of returns.

4. A request is made by the counsel for the petitioners to extend the deadline for filing the audit report, which the court refrains from deciding immediately. The judgment emphasizes that issues related to penalties, interest, and late fees will be considered during the final assessment, with the option for the assessee to explain circumstances beyond their control when required.

5. The court directs the authorities to address the technical glitches promptly as they fall within the realm of the respondent's control. Mention is made of Circular No.01/2022 dated 11.01.2022, extending the timeline for filing income tax returns and audit reports for A.Y. 2021-22. The matter is scheduled for further hearing on 08.02.2022 to allow the respondents to file their counter, with ongoing monitoring of progress on resolving technical issues in the Portal.