f Tax Audit Date Extension-Ab Tera Kya Hoga Kalia
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As we all known, number of writ petitions have been filed in various High Courts regarding extension of due date for ITR Filing for those assessees covered under the provisions of tax Audit under section 4AB of the Income tax Act, 1961. As on date petitions are pending/in the course of hearing are in Bombay, Gujarat, Rajasthan, Orissa, Karnataka, Delhi and Punjab & Haryana High Courts.

All the writ petitions are primarily based on the ground that CBDT has made considerable delays in notifying various Income Tax Returns (ITRS), making available electronic utilities and enabling the filing.

It is also learnt that the other day Delhi High Court has issued directions to Central Board of Direct taxes (CBDT) to notify ITRs on the 1 st day of the relevant Assessment year and record reasons for failure to notify so.

The facts would be incomplete without referring to Government categorical refusal vide press release dated 09-09-2015 to extend the date.

Now, the matter of non extension has picked up heat and the ball is now in Court.  Since all the writs have been admitted by the Courts, the prima facie of the case can not be disputed. Since all the probable reasons of the Government for non extension has already been taken care of by the Hon’ble Gujarat High Court in its judgment for last assessment year 2014-15, the Govt. does not seem to have anything new ground to contest.

In the above factual matrix, it seems that the balance of convenience is squarely in favour of the petitioners and against the Government. Though it would be early to say which side the camel will sit.

An Extension granted by the Court would certainly be a situation which the Govt/CBDT would not like to face. The only option available to Government/CBDT, which I am sure by now they will be looking for is to find a respectable retreat on the matter, say in the name of public cause.  

The meet of the president of ICAI with finance Minister would have been a perfect occasion to rescue the Govt. by suo motto declaring an extension and would also be good for ICAI.

By Saturday, CBDT must have obtained the feedback from it battalion of counsels from all the High Courts. it is true that Single Judge of Delhi High Court has rejected the extension. However in rest of the High Courts, the matter is heard by a Division Bench and So far, the view of the Courts did not seem to be very favourable to CBDT and before the matters is taken up for final hearing and judgment in Courts, CBDT must have chalked out its startegy which could be an extension already decided or who knows? even an order already signed to be released late night (Saturday 27-09-2015) or CBDT would still like to see the mood of the Court on Monday (28-09-2015) and release the extension order before the judgment is pronounced. This will serve the dual purpose, saving the warth of the Courts by making all writ petitions infructuous and projecting an assessee friendly gesture.

No points for guessing who is Kalia?

Related Updates:
Status of various Petitions in High Courts for Extension of Tax Audit Due Date Click Here >>

Tax Audit Date Extension-Ab Tera Kya Hoga Kalia ! | 23-09-2015 |

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