2015 (10) TMI 262 - HC - Income Tax

Extension of date for filing returns of income in the ITR Form Nos. 3,4,5,6, and 7 to 31st October, 2015 - extension seeked on the ground that on similar grievances such a prayer has been finally allowed by orders in Vishal Garg v/s. Union of India (2015 (9) TMI 1307 - PUNJAB & HARYANA HIGH COURT) and All Gujarat Federation of Income Tax Consultants v/s. Central Board of Direct Taxes (2015 (10) TMI 25 - GUJARAT HIGH COURT ) - Held that - The present situation has arisen only in view of the delay on the part of CBDT in discharging its obligations of making available the ITR Form Nos. 3,4,5,6, and 7 in due time. Thus, the need to extend the due date. One more feature which was emphasized was that in case of ITR Forms 1,2,2A and 4S being non-audit cases, necessary forms were notified only on 22nd June, 2015 instead of 1st April, 2015 i.e. a delay of 83 days. The normal date of filing of return in such cases would be 31st July, 2015. However, the CBDT extended the same to 7th September, 2015 by an order dated 2nd September, 2015 under Section 119 of the Act. This on the ground that the delay in notifying the forms would cause great hardship to the tax payers. We are unable to appreciate how a delay of 83 days in making the ITR Form Nos.1,2, 2A and 4S in case of non-audit will cause great prejudice and delay of 120 days in making ITR Form Nos.3,4,5,6 and 7 does not cause any prejudice. The Gujarat High Court noted that the Scheme of the Act indicates that ordinarily a period of 180 days is available to the assessee to file income tax return in case of E-filing of return of income in Form Nos.3,4,5,6, and 7. Any curtailment of this period on account of non-availability of the necessary utility for filing a return online, does certainly cause prejudice to the assessee wholly on account of the delay on the part of the CBDT to notify the ITR Forms. It is clear that it was also of the view that the CBDT should make available the necessary ITR Forms on 1st April of the subject Assessment Year for the benefit of the assessee. However, in case, there is any delay, the same should be recorded in writing and also consider whether in view of the delay, an extension of time in filing return is warranted. Taking into account the fact that the decision of the Gujarat High Court and Punjab and Haryana High Court have been accepted by the CBDT issuing orders under Section 119 of the Act but very unfairly in case of an all India Statute restricting its benefit to only two States and one Union Territory. This itself warrants an extension of due date to the same date as is available for the assessees in Gujarat, Punjab and Haryana to avoid any discrimination to the assessees else where.The Respondent No.2 i.e. CBDT is directed to forthwith issue the order/ notification under Section 119 of the Income Tax Act and extend the due date for E-filing of the Income Tax Returns in respect of the assessee who are required to file return of income by 30th September, 2015 to 31st October,2015.

Summary

Issues Involved:
1. Extension of the due date for filing income tax returns.
2. Delay in notification of ITR Forms by the Central Board of Direct Taxes (CBDT).
3. Discrimination in granting extensions to specific states and Union Territories.
4. Conflicting judgments from different High Courts on the extension of the due date.

Issue-wise Detailed Analysis:

1. Extension of the Due Date for Filing Income Tax Returns:
The petitioners sought interim relief to extend the due date for filing income tax returns in ITR Forms Nos. 3, 4, 5, 6, and 7 from September 30, 2015, to October 31, 2015. This request was based on similar extensions granted by the Punjab and Haryana High Court and the Gujarat High Court. The CBDT had accepted these decisions and issued orders under section 119 of the Income-tax Act, 1961, extending the due date to October 31, 2015, for assessees in Punjab, Haryana, Chandigarh, and Gujarat. The Bombay High Court found merit in the petitioners' grievances and directed the CBDT to issue a notification extending the due date to October 31, 2015, for all assessees required to file returns by September 30, 2015.

2. Delay in Notification of ITR Forms by CBDT:
The petitioners argued that the CBDT failed to notify the required ITR Forms on April 1, 2015, causing prejudice to assessees who had limited time to gather necessary details and e-file their returns. The forms were only made available on the Department's website on August 7, 2015, reducing the time for assessees to fill up the forms from 183 days to 55-61 days. The court acknowledged that this delay caused significant hardship to assessees and justified the extension of the due date.

3. Discrimination in Granting Extensions to Specific States and Union Territories:
The CBDT had extended the due date for filing returns only for assessees in Punjab, Haryana, Chandigarh, and Gujarat, based on the orders of the respective High Courts. The Bombay High Court found this discriminatory and unfair, as the Income-tax Act is an all-India statute. The court emphasized that the extension should be uniformly applied to avoid discrimination against assessees in other states.

4. Conflicting Judgments from Different High Courts:
The court noted the conflicting judgments from different High Courts on the issue of extending the due date for filing returns. While the Punjab and Haryana High Court and the Gujarat High Court granted extensions, the Delhi High Court and the Rajasthan High Court refused to do so. The Bombay High Court found itself in agreement with the decisions of the Punjab and Haryana High Court and the Gujarat High Court, which had been accepted by the CBDT. The court highlighted that each court is entitled to take its own view and that the CBDT's acceptance of the extensions granted by the Punjab and Haryana High Court and the Gujarat High Court diminished the significance of the contrary decisions by the Delhi and Rajasthan High Courts.

Conclusion:
The Bombay High Court directed the CBDT to issue a notification under section 119 of the Income-tax Act, extending the due date for e-filing income tax returns to October 31, 2015, for all assessees required to file by September 30, 2015. The court emphasized that this extension was necessary to avoid discrimination and to address the hardship caused by the delay in notifying the ITR Forms. The court did not opine on any other issues beyond the extension of the due date.