The Chamber Of Tax Consultants vs. UOI (Bombay High Court) – II

DATE: September 30, 2015 (Date of pronouncement)
DATE: October 2, 2015 (Date of publication)
AY: 2015-16
FILE: Click here to download the file in pdf format
Strictures passed against CBDT for causing ‘very unfair discrimination' between taxpayers by extending due date for filing ROI only for taxpayers in P&H and Gujarat and not for those in other States

(i) 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 Efiling 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.

(ii) 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. Moreover, we find ourselves in agreement with the reasons given by the Gujarat High Court in All Gujarat Federation of Tax Consultants as also the decision of the Punjab and Haryana High Court in Vishal Garg.

12 comments on “The Chamber Of Tax Consultants vs. UOI (Bombay High Court) – II
  1. Varaprasad Daitha says:

    I hope the CBDT will awaken from its sleepiness of ground realities. They are judging all issues simply sitting in air conditioned rooms. Hon’ble High Court is right in its orders that National level tax administration body should not attempt to discriminate tax payers depending upon territorial jurisdictions.

    Respected PM and FM should rise to the hours of the need and set right things in order in CBDT.

  2. Deepak Nayak says:

    I Agree with Mr. Varaprasad Daitha. PM should now act for ease in business of Indian Businessman in India…

  3. Manoj jain ca says:

    It is very simple that ca institute representatives have no voice and only doing vote politics further Bjp govt has no control over cbdt officials who are so adamant and tax payers are suffering for the laxity of cbdt and indulge in litigation on the cost of tax payers money. It is not made clear by cbdt what is the loss of revenue in extending the date except igo of one or two officials of cbdt who are in the process of to fail the Modi govt

  4. Rajesh Arora says:

    The issue of refunds is withheld by the department for indefinite period for the sake of budget issue inspite of various request letters and repeated follow up no results yield there is no time limit in the law and no responsibility fixed on concerned official for the delay Clear directions required to call for explanation of the responsible officer


    Perhaps the time has come for professional organisations (including the ICAI) to reconsider the overtures towards the office bearers in Government as well as the executive. They must by now realise that this “short cut” is proving counter productive and they are now being “taken for granted.”

  6. manoj kumar jain CA says:

    Day to day departmental officers are becoming arrogant and tendency of highhandedness and arbitraryness is incresaing. On change of Govt. it was anticipated that working shall be changed but till date Govt. has no effcetive control over CBDT officials as well as field officers. Govt. has failed to give message that there is any change in working of Income tax officials. Filing appeals on frivilious grouds, not dispoisng off applications ( stay, rectifications, appeals) in stipultaed time/ reasonable time are the examples. It is the tendency in Income tax Department not to take any action to avoid responsibility, which shows that though the higher authorities /CBDT are issuing circulars/ notifications just for eye wash of the tax payers/ counsels but no action has been taken in true spirit of those corculars/ notfications. Modi Govt. has failed to give any message that it is differnt in wrorking with earlier Govt.

    • Rajesh bhardwaj says:

      Sir, I totally appreciate your strong feelings on ITD and its officers. I have served in ITD for 40 years and I can inform you that no doubt there are some bad eggs but the generality of the officers/ staff would like to do public service .this would require stoppage of political interference in working of the department; overhaul of CBDT; non interference of unions of staff and gazetted officers in a negative manner in working of offices ; general improvement in attitude of officers and staff that they are servants of the public and not masters though at the same time using powers given to them in lawful manner to gather taxes with firmness and without fear and favour. If someone does not work in lawful manner then strict disciplinary action be taken against him/ her. It is uphI’ll task but requires an effort can be made.

      • Rajeshji, there is too much political interference, and reached reached, peak of late.

        Problem further compounded by low meritorious staff officers thanks to politicians trickery, not realizing the public servants need to give better services day by day.

        further, there is too much of interpretations by the very half knowledgeable politicians as law makers; besides equally the public servants contribute to interpretations of simple sections, and further, there are several tribunal court decisions that need better appreciation by public servants but unfortunately these officers are not well equipped with, and all these things contribute to the misery of tax payers…see central laws or rules normally applicable all over india, so IRS officers need to understand that if there is a rule that is modified for reason that needs to be applicable applicable in similar degrees all over, you need not to be told again and again , that makes the constitutional courts to get annoyed and that results in strictures.

        public servants must by all necessary implications need to be very prudent people with relevant merit to understand implication of any of their acts as an execution mechanism, and for that only tax payers allow pay commissions to pay appropriate increases in the wage or salary structures to these public servants as a class of persons or people, but yet public servants being intermediary between government and public here taxpayers need to be treated prudently to serve tax payers as a respected public more important than politicians who are some defacto entities of people.

        if the public servants are prudent class naturally they need to be more cooperative with tax payers, that could ensure the tax payers cooperation if taxpayers are respectfully treated by public servants please.

  7. Varaprasad Daitha says:

    I feel that the practicing CAs are not following Supreme Court decisions. Because SC had already passed orders in the case of delayed refunds wherein it had stated that if any willful delay is established in issue of refunds the interest component u/s 244A is to be collected such erring officer / official. Why do we not take help of this decision.

  8. bobjee kurien says:

    I would suggest that the revenue audit verifies all the cases where refunds have been issued with interest .If the interest component paid is on account of delay by the neglect of the officer then the matter needs to be placed before the CCIT and a remark is made in the annual confidential report of the officers responsible ,this includes The Joint Commissioner of Income Tax and the Additional Commissioner of Income Tax who have concurrent jurisdiction on assessment proceeding .The JCIT and ADDL Commissioner resort to issuing oral instruction to ensure that the trail does not catch them

  9. there need to be uniformity of income tax procedure, i wonder now the revenue officers seem to behave like John Paulson , hedge fund manager of Goldman Sachs, to get such huge profitability against the normal working of any bank..this attitude made Wall Street a public utility look for profitability, does it mean CBDT wants to emulate Goldman Sachs?

    Govt depts must be public utilities, could they become profit generating businesses?

    Then would not the govt become great cheater like Goldman Sachs that brought down complete breakdown in economics system all the world, still not recovered.

    i feel it is high time honorable Supreme Court of India appoint a commission of inquiry like SEC in U.S. appointed to find what went wrong in Goldman,FCIC, then only the Tax administration in india might improve by bringing to justice the great indian revenue service as also the ministry of finance of govt of india, as all these govt entities in india are governed under article 51A of fundamental duties part IVA of the constitution of india besides Art 265 need to be fully enforced on the very government of india, else citizens of india would be no where under these modern Tugluks, is my humble opinion.

  10. Every one including government should be brought to justice uniformly, without any concession whatsoever.

    officers, ministers should be brought to justice without vicarious liability so that tax payers moneys are not squandered by these public servants as also social workers called politicians in power.

    then only the nation can be a nation, else national system would get destroyed in no time.

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