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2022 (1) TMI 947 - HC - Income TaxExtension of due date of filing of Tax Audit Report and the Income Tax Returns for the assessment year 2021-2022 till March 31, 2022 - seeking order or direction, directing the respondents not to levy interest under section 234A till the revised due dates provided vide Circular 17/2021 dated 09.09.2021 - appropriate directions to authorities for accepting the TAR and/ or ITR in physical form till the New Income Tax Portal stabilizes and becomes glitch free - HELD THAT - All necessary steps shall be taken to ensure that the assesses are able to upload their Income Tax Returns/Tax Audit Reports online smoothly and without any difficulties. They have also assured that in the event of any technical glitch, the same shall be attended at the earliest and taken care of as explained in the affidavit filed today. Having regard to the stance of the CBDT as it emerges from the affidavit, we are convinced that no further adjudication is required in the present litigation. We appreciate the efforts put in by the CBDT to ensure that the assesses do not have to face any hardships or difficulties on account of the technical glitches in the portal. We take notice of one pertinent feature emerging from the affidavit and i.e. the E-mail ID, which has been created to assist the filing of Tax Audit Report. A team of six members or if need be more are to examine and resolve the E-mails received at this E-mail ID. Our suggestion to Mr. Singh as well as to Mr. Krishnamurthy is that one such E-mail ID may also be created for the Income Tax Returns. Our suggestion has been graciously accepted by Mr. Singh and Mr. Krishnamurthy. They have assured that the needful shall be done in this regard also. We are convinced that with the cooperation of one and all, we have been able to resolve the controversy as regards the technical glitches in the Income Tax Portal. At this stage, Mr. Hemani, the learned Senior Counsel submitted that by and large all issues can be said to have been taken care of with view of what has been stated in the affidavit except the issue as regards the levy of interest under Section 234A of the Income Tax Act. We do not intend to look into the above controversy in the present litigation as we are informed that one writ application as regards Section 234A is already pending before this High Court. This issue shall be looked into as and when the pending writ application is taken up for hearing by this Court. We close both the writ applications and dispose of the same accordingly. The affidavit, which has been filed today on behalf of the respondents Nos.1 and 2 shall be taken on record.
Issues Involved:
1. Extension of the due date for filing Tax Audit Report (TAR) and Income Tax Returns (ITR) for the assessment year 2021-2022. 2. Levy of interest under Section 234A of the Income Tax Act, 1961. 3. Acceptance of TAR and ITR in physical form due to technical glitches in the new Income Tax Portal. 4. Invocation of Section 271B for late filing of the audit report. 5. Provision for filing TAR/ITR in physical form pending resolution of technical issues. Detailed Analysis: Issue 1: Extension of Due Date for Filing TAR and ITR The petitioner sought an extension of the due date for filing the Tax Audit Report and Income Tax Returns for the assessment year 2021-2022 till March 31, 2022. The court noted that the Central Board of Direct Taxes (CBDT) had already extended the due date to February 15, 2022, as per Circular No. 01/2022 dated January 11, 2022. The court appreciated the extension but emphasized the need for the portal to function smoothly to make the extension effective. Issue 2: Levy of Interest under Section 234A The petitioner requested that no interest under Section 234A be levied until the revised due dates provided in Circular 17/2021 dated September 9, 2021. The court acknowledged the issue but did not provide a ruling on this matter, noting that a separate writ application concerning Section 234A was already pending before the High Court. This issue would be addressed when the pending writ application is taken up for hearing. Issue 3: Acceptance of TAR and ITR in Physical Form The petitioner argued for the acceptance of TAR and ITR in physical form due to technical glitches in the new Income Tax Portal. The court recognized the difficulties faced by the assessees due to portal issues. However, the respondents clarified that filing TAR and ITR in physical form or via email was not feasible due to the existing electronic processing system. The court directed the respondents to ensure that any technical glitches be resolved promptly to facilitate smooth filing. Issue 4: Invocation of Section 271B for Late Filing of Audit Report The petitioner sought a direction that Section 271B should not be invoked for late filing of the audit report and that physical filing should be considered sufficient compliance. The court did not directly address this issue but emphasized that any technical difficulties faced by the assessees should be taken into account by the authorities to avoid penal consequences. Issue 5: Provision for Filing TAR/ITR in Physical Form Pending Technical Resolution The petitioner requested permission to file TAR/ITR in physical form pending the stabilization of the new Income Tax Portal. The court discussed this issue with the respondents, who assured that all necessary steps would be taken to resolve technical issues promptly. The court appreciated the efforts of the CBDT and the assurances given by the respondents to address the technical glitches and facilitate smooth filing. Conclusion: The court concluded that no further adjudication was required as the CBDT had extended the due date for filing TAR and ITR and had taken steps to address technical issues. The court suggested creating a dedicated email ID for ITR issues, similar to the one for TAR, which the respondents agreed to implement. The court closed the writ applications, taking on record the affidavit filed by the respondents and appreciating the cooperation of all parties involved. Separate Judgments: No separate judgments were delivered by the judges; the judgment was delivered by Honourable Mr. Justice J.B.Pardiwala on behalf of the bench.
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