Allahabad High Court issues notice to CBDT on levy of interest u/s 234A despite due date extension

Allahabad High Court issues notice to CBDT on levy of interest u/s 234A despite due date extension

A Division Bench of Hon’ble  Allahabad High Court in a PIL filed by Lucknow CA Tax Practitioners Association issued notice to CBDT on the issue of levy of interest u/s 234A despite due date extension

The Hon’ble High Court observed that as far as the prayer of the association for extension  the “Due Date” of filing of Income Tax Return of Tax Audit Cases from 15.10.2018 to at least up to 31.10.2018 or such other date was concerned, had lost its efficacy in view of the order issued by the Central Board of Direct Taxes on 08.10.2018, whereby the date for filing return had already been extended up to 31.10.2018. 

However, the other submission was that on the one hand, though the date has been extended for filing Income Tax Return of Tax Audit Cases but on the other hand, levy of interest under Section 234-A of the Income Tax Act indicated in the impugned order dated 24.09.2018 has not been amended causing serious prejudice. 

The Hon’ble High Court observed that once the date of filing of Income Tax Return has been extended, there is no justification for not extending the date and charging of penal interest for filing Income Tax Return within time.

Accordingly, their Lordships issued notice to UOI and CBDT and granted four weeks’ time to file counter affidavit. 

The case shall be listed within two weeks’ thereafter. 

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