Download Gujarat High Court Full Order directing CBDT to extend ITR due date AY 2014-15 to 30-11-2014

The Gujarat High Court while directing CBDT to extend the date, also raised question on the competence of CBDT to extend the date for filing of tax audit report without extending the due date for filing the return of income.

The prayers sought the following:

a.    to issue a writ of mandamus, or any other appropriate writ, order or direction, directing that the respondents henceforth, make any alterations in Forms and Utilities or changes in tax compliance requirements, applicable from the A.Y. Subsequent to the A.Y. In which such alterations are introduced;

b.    to issue a writ of certiorari,or any other appropriate writ, order or direction holding the impugned Notification as being illegal, inasmuch as it promotes the filing of ITR without the mandatorily required TAR;

c.    to issue a writ of mandamus, or any other appropriate writ, order or direction, directing the Respondent, in the typical set of facts, to extend the due-date for filing the ITR to 30.11.2014, i.e. the due-date for filing of the TAR, provided by the impugned Notification;

d.    to issue a writ of mandamus, or any other appropriate writ, order or direction, directing the Respondent, in the typical set of facts, to extend the due-date of filing the ITR, at least by the number of days for which a “black-out” prevailed;

e.    to grant interim/ ad-interim reliefs in terms of prayer clause above;

f.     such further and other reliefs, as this Hon'ble Court may deem fit and proper in the nature and circumstances of the case.”

The relevant excerpts of the order of the Gujarat High Court delivered on 22-09-214 are as under

“The respondent Board is directed to modify the notification dated 20th August, 2014 issued in exercise of powers under section 119 of the Act by extending the due date for furnishing the return of income to 30th November, 2014. It would, however, be open for the Board to qualify such relaxation by extending the due date for all purposes, except for the purpose of Explanation 1 to section 234A of the Act. Rule is made absolute accordingly, to the aforesaid extent with no order as to costs.”

“Such extension needs to be granted with the qualification that the same may not result into non-charging of interest under section 234A. Simply put, while extending the period of filing of the tax return and granting benefit of such extension for all other provisions, interest charged under section 234A for late filing of return would be still permitted to be levied, if the Board so choses for the period commencing from 1.10.2014 to the actual date of filing of the return of income. Those tax payers covered under these provisions if choose to pay the amount of tax on or before the 30th September, 2014, no interest in any case would be levied despite their filing of return after the 30th September, 2014.”

“The legislative intent is clear. Namely that, the due date for filing return of income and the specified date for furnishing tax audit report under section 44AB of the Act should be the same. The Board in exercise of powers under section 119 of the Act, therefore, cannot issue any circular or notification which is contrary to the legislative intent and the scheme of the enactment which envisages that the “specified date” and “due date” should be the same.”

the Board is duly empowered under sub-section (2) of section 119 of the Act, to relax the provisions of section 139 of the Act, whereas there is no power to relax the provisions of section 44AB of the Act. The Board, however, by the notification dated 20th August, 2014, has relaxed provisions of section 44AB of the Act for assessment year 2014-15 without extending the due date for filing the return of income. Thus, in the absence of any statutory power vested in the Board to relax the provisions of section 44AB of the Act, the notification dated 20th August, 2014 has no legs to stand on its own. The only remedy available for the Board to sustain the validity of the notification is to extend the due date for filing return of income under section 139 of the Act in exercise of powers under section 119 of the Act.

“In the aforesaid circumstances, having regard to the fact that the Board has no power to relax the provisions of section 44AB of the Act, it would be in the fitness of things if with a view to bring the notification dated 20th August, 2014 within the ambit of its jurisdiction, the Board relaxes the provisions of section 139(1) of the Act by extending the due date for filing the return of income till 30th November, 2014 as a direct consequence whereof, the “specified date” for obtaining and furnishing the report of audit under section 44AB of the Act would get automatically extended.”

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