2022 (1) TMI 895 - HC - Income Tax

Extension of time limit for filing returns and furnishing tax audit reports - PIL filed by the Tax Bar Association of Jodhpur pointing out various difficulties faced by the assessee on account of the official portal of the income tax department having various glitches - prayer made was to issue direction to the CBDT to extend such time limit up to 15.02.2022 in exercise of the power under Section 119 - HELD THAT - Presumably, these extensions are granted because the Government of India had realized that on account of technical difficulties, several assesses may not have been in a position to make the compliances. There is nothing for us to presume that the administration is not cognizable of such defects and that proper steps for removing of such defects would be taken so that the extension of last date for compliances does not remain illusory but the assesses can meaningfully take advantage of such extension. The prayers made by the petitioners in this respect are rather wide and non specific. At this stage, we leave it to the administration to deal with these issues at its level. We are hopeful that proper resolution of the difficulties of assessees would be made at the level of the administration itself without the requirement of Court s intervention. This petition is therefore disposed of at this stage with the above observations, leaving it open to the petitioners to raise these issues if in future the difficulties persist.

Summary

Issues:
1. Extension of time limit for filing returns and tax audit reports.
2. Removal of defects and glitches in the official portal of the income tax department.

Extension of Time Limit for Filing Returns and Tax Audit Reports:
The petition filed by the Tax Bar Association of Jodhpur highlighted the challenges faced by assessees due to glitches in the income tax department's official portal. The primary prayer was for an extension of the time limit for filing returns and tax audit reports, requesting the CBDT to exercise its power under Section 119 of the Income Tax Act, 1961, to extend the deadline until 15.02.2022. The counsel for the petitioners informed the court that the Government of India had already extended the last dates for filing returns and tax audit reports for the assessment year 2021-22, resolving the first grievance raised by the petitioners.

Removal of Defects and Glitches in the Official Portal:
The second aspect of the petitioners' grievance focused on the necessity to address all defects and glitches in the official portal. The court acknowledged the importance of ensuring that any time extension granted is meaningful and not illusory due to portal issues. However, the court decided not to entertain this grievance at that stage, considering the recent across-the-board extensions granted by the Government of India. The court expressed confidence that the administration was aware of these technical difficulties and would take appropriate steps to rectify them, allowing assesses to benefit from the extended deadlines effectively.

Conclusion:
The High Court disposed of the petition, emphasizing that the broad and nonspecific prayers made by the petitioners regarding portal defects should be addressed by the administration itself. The court left it to the administration to resolve the issues without direct court intervention, expressing hope that the difficulties faced by assessees would be appropriately handled. The petition was disposed of with the understanding that the petitioners could raise these concerns again if the challenges persisted in the future.