2022 (1) TMI 606 - HC - Income Tax

Levy of interest under Section 234A - Extension of due date of filing of Tax Audit Report and the Income Tax Returns - technical glitches in the portal - filing of the TAR / ITR in the physical form - HELD THAT - Although the time period has been extended upto 15th February 2022, yet the Clarification 1 in the circular would indicate that the extension would not apply to Explanation 1 to Section 234A of the Act, in cases where the amount of tax on the total income as reduced by the amount as specified in clauses (i) to (vi) of sub-Section (1) of Section 234A if it exceeds one lakh rupees. As Senior Counsel made one further request that having regard to the technical glitches in the portal, the assessee may be permitted to file TAR / ITR in the physical form to the jurisdictional authority. According to Mr. Hemani, it should not happen that although the time period has been extended upto 15th February 2022, yet on account of the technical glitches in the portal, the assessee are not able to make good the extended period. We request Additional Solicitor General of India to speak to the highest authority concerned and try to ascertain whether the department would be agreeable to accept the filing of the TAR / ITR in the physical form. We request the authority concerned to take a practical view of the problems which the assessees are facing as on date on account of the technical glitches in the portal. The authority should not overlook this fact and try to solve the problems or rather ease the difficulties which the assessees are facing. We appreciate the decision taken by the CBDT to extend the time period upto 15th February 2022, but the assessees should be in a position to make the best of this extended time period. Mr. Hemani is right to a certain extent that if the technical glitches are going to continue, then even ex tension of further three months would not solve the problems. Let Notice be issued to the respondents, returnable on 17th January 2022.

Summary

Issues:
Extension of due date for filing Tax Audit Report and Income Tax Returns for assessment year 2021-2022, levy of interest under Section 234A of the Income Tax Act, technical glitches in the online portal for uploading audit reports, request for physical filing of TAR/ITR due to portal issues.

The High Court of Gujarat heard two writ applications with similar issues raised by the Southern Gujarat Income Tax Bar Association seeking various reliefs related to the extension of due dates for filing Tax Audit Reports and Income Tax Returns for the assessment year 2021-2022. The court treated one application as the lead matter for convenience. The litigation focused on the extension of due dates and the levy of interest under Section 234A of the Income Tax Act, 1961. The court had previously dealt with a similar matter and extended the due date for filing reports and returns. The court emphasized the technical glitches in the online portal causing difficulties for Chartered Accountants in uploading audit reports, potentially leading to penalties and interest. The court urged authorities to address portal issues promptly. The CBDT had issued Circular No.01/2022 extending timelines for various filings due to COVID-related challenges and technical difficulties. The court noted the extension but highlighted that the extension did not apply to certain cases exceeding a specified tax amount. The court also considered a request for physical filing of TAR/ITR due to ongoing portal issues. The court appreciated the extension but emphasized the need for practical solutions to address portal problems effectively. The court issued notices to the respondents and requested discussions with the concerned authorities to resolve the issues promptly.

In conclusion, the judgment addressed the extension of due dates, technical glitches in the online portal, and the request for physical filing due to portal issues, emphasizing the need for practical solutions to ensure effective compliance with the extended timelines.