Non-Extension Of Due Date For Filing ROI Challenged In Bombay High Court

The Central Board of Direct Taxes (CBDT) issued Notification dated 25.07.2014 to amend the Income Tax Rules 1963 by providing for a new format of FORM No.3 CD of the particulars to be furnished by the Auditor. The CBDT also issued an order dated 20.08.2014 u/s 119 of the Act to extend the time to file the audit report u/s 44 AB of the Act in the new FORM 3 CD from 30.09.2014 to 30.11.2014.

The Chamber of Tax Consultants filed a Writ Petition claiming that although the time to file the FORM No. 3 CD being the Audit Report has been extended, the time to file Return of Income has not been suitably extended to coincide with the date of filing of audit report. It was claimed that this would lead to inconvenience to tax payers who would be required to file their returns in the absence of audit report, with the result the determination of income would be subject to change on the basis of the audit. This would lead to a large number of tax payers having to file revised return of income besides may in some cases also be exposed to penal proceeding. It was also pointed out that similar Petitions have been filed in Gujarat and Delhi High Court and are likely to be heard soon.

The Court directed the department to file an affidavit in reply by Monday, the 22.09.2014. The department stated that copies of affidavit filed by the revenue in other High Courts would also be endeavoured to be filed. The matter is now posted for admission on Tuesday, 23.09.2014.