Even further 3-month extension will not solve the problem if IT Portal glitches continue: Gujarat HC

During the court proceeding in matter of The Southern Gujarat Income Tax Bar Association, Surat Versus Union Of India, the Honorable Gujarat High Court pointed out that that if the technical glitches are going to continue, then even extension of further three months would not solve the problems.

A writ application has been filed by the Southern Gujarat Income Tax Bar Association, Surat seeking relief of Tax Audit due date extension, Non Levy of interest u/s 234A, allowing filing of Tax Audit Report [TAR] and Income Tax Return [ITR] in physical form.

Then it was pointed that although the time period has been extended by Circular No. 01/22 upto 15th February 2022, yet the Clarification 1 in the circular would indicate that the extension would not apply to Explanation 1 to Section 234A of the Act, in cases where the amount of tax on the total income as reduced by the amount as specified in clauses (i) to (vi) of sub-Section (1) of Section 234A if it exceeds one lakh rupees.

Mr. Hemani, the learned Senior Counsel of the petitioner made one further request that having regard to the technical glitches in the portal, the assessee may be permitted to file TAR / ITR in the physical form to the jurisdictional authority. According to Mr. Hemani, it should not happen that although the time period has been extended upto 15th February 2022, yet on account of the technical glitches in the portal, the assessee are not able to make good the extended period.

The Court on this requested Mr. Devang Vyas, the learned Additional Solicitor General of India to speak to the highest authority concerned and try to ascertain whether the department would be agreeable to accept the filing of the TAR / ITR in the physical form. Additionally, the court requested the authority concerned to take a practical view of the problems which the assessees are facing as on date on account of the technical glitches in the portal.

As per the Court “The authority should not overlook this fact and try to solve the problems or rather ease the difficulties which the assessee are facing.”

Court further appreciated the decision taken by the CBDT to extend the time period upto 15th February 2022, but it added that the assessees should be in a position to make the best of this extended time period.

Court further agreed to Mr. Hemani to a certain extent that if the technical glitches are going to continue, then even extension of further three months would not solve the problems.

Click on the below link to download the order: