2023 (1) TMI 279 - HC - Income Tax

Return of income in paper form - Seeking permission to allow Petitioner to file the return of income in paper form and to treat the same as valid, subject to the final disposal of the petition and seeks further permission to file the return of income in electronic form as soon as the accounts of the Petitioner are audited and to treat the same as filed in accordance with law before 31st December, 2022 subject to the final disposal of the petition - HELD THAT - As we are not inclined to go into the issue whether the Petitioner is justified in not fling electronic return of the income tax, for the reasons recorded in the body of the petition or not. This issue can be decided by this court at the stage of admission of the writ petition or thereafter. On similar averments, this Court has already permitted the Petitioner to file paper return for the assessment years 2019-20, 2020- 21 and 2021-22 subject to the further orders that may be passed by this Court in those petitions. The Petitioner is permitted to file paper return for the assessment year 2022-23 before 31st December, 2022, 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.

Summary

Issues:
- Permission to file return of income in paper form for assessment year 2022-2023.
- Validity of Rule 12 of the Income Tax Rules, 1962.
- Justification for not filing electronic return of income tax.
- Request for reply from the respondents.
- Decision on whether the paper return is in compliance with the Income Tax Act or Rules.

Analysis:

The petitioner sought permission to file the return of income in paper form for the assessment year 2022-2023 and requested it to be considered valid until the final disposal of the petition. The petitioner also asked for permission to file the return in electronic form after audit, subject to the same conditions. The petitioner argued that previous court orders allowed paper returns for other assessment years, and claimed that Rule 12 of the Income Tax Rules, 1962 is ultra vires the Income Tax Act, 1961 and the Constitution of India, making the electronic return filing requirement invalid.

The court noted the petitioner's reasons for being unable to file electronic returns within the specified time. The respondents were given time to file a reply, and the Attorney General for India was issued notice regarding the matter. The court refrained from deciding on the justification for not filing electronic returns at that stage, stating that it could be addressed during the admission of the writ petition. The court emphasized that previous orders permitted paper returns for other assessment years, and kept all contentions open for further consideration.

In the final order, the court permitted the petitioner to file a paper return for the assessment year 2022-2023 before 31st December, 2022, subject to future court orders. All contentions of the parties were kept open, and it was clarified that the compliance of the paper return with the Income Tax Act and Rules would be assessed later. The respondents were directed to file a reply within four weeks, with a two-week period for any rejoinder. The writ petition was scheduled for admission alongside other related petitions on 10th April, 2023, with parties instructed to act on an authenticated copy of the order.