The Gujarat High Court in the writ filed by The All Gujarat Federation of Tax Consultants, vide its order dated 8.1.2021 have directed the Ministry of Finance to take an appropriate decision regarding further extension of ITR filing and Tax Audit dates for the AY 2020-21, by 12.1.2021.
It may be noted that this writ was filed requesting Court to issue a writ of mandamus to the Union
of India, Ministry of Finance, to ask the CBDT to exercise its powers vested in it under Section 119 of the Income Tax Act, 1961 (for short, “the Act, 1961”) by extending the due date of 31st October 2020 at least for three months i.e. upto 31st January 2021 for the purpose of both : (1) filing the ITR and (2) tax audit report in case of assessees whose accounts are required to be audited.
It may be noted here that so far as ITR – 1 and ITR – 4 is concerned, the time limit expires on 10th January 2021. The Tax Audit Reports are to be submitted by 15th January 2021 and the returns are to be filed by 15th February 2021.
Further for the Assessment year 2020-21, the due date for filing the ITR and TAR under the Act has been extended earlier considering the covid-19 pandemic as under:
[a] The due date for filing income tax returns for A.Y.2020-21 was extended vide the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 to 30th November,2020.
Subsequently, vide notification S.O. 3906 (E) dated 29th Oct, 2020, the due dates were further extended to 31st Jan. 2021 for cases in which tax audit report under section 44AB is required
to be filed and 31st Dec. 2020 for others.
[b] Since as per Section 44AB due date for filing tax audit report is one month prior to the due date for return, the due date for filing of tax audit report was also extended to 31st Oct. 2020 vide Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 and extended further to 31st Dec. 2020 vide notification S.O. 3906(E) dated 20th Oct. 2020.
[c] Subsequently vide notification S.O. 4805(E), the due dates were further extended to 15th February, 2021 for cases in which tax audit report under Section 44AB is required to be filed and 10th January, 201 for others.
Although the GST due dates are not covered under the writ, but for information of the readers this order of Gujarat High Court is being shared.
The para 21 and 22 of the order of Gujarat High Court is relevant which are reproduced below for ready reference of the readers:
21 We are of the view that the respondent No.1 – Union of India, Ministry of Finance should immediately look into the issue, more particularly, the representation dated 12th October 2020 at Annexure : I of the paper book (page 108) and take an appropriate decision at the earliest in accordance with law. We, accordingly, direct the respondent No.1 to do so. While taking an appropriate decision, the Union shall bear in mind the observations made by this High Court in the two above noted judgements, more particularly, the observations of the Supreme Court in the case of Vaghjibhai S. Bishnoi (supra) that the powers given to the CBDT are beneficial in nature to be exercised for proper administration of fiscal law so that undue hardship may not be caused to
the taxpayers. The purpose is of just, proper and efficient management of the work of assessment and the public interest. One additional aspect needs to be kept in mind before taking any appropriate decision that the time period for the officials of the tax department has been extended
upto 31st March 2021 having regard to the current covid19 pandemic situation. If that be so, then some extension deserves to be considered in accordance with law. Let an appropriate decision be taken by 12th January 2021.
22 Post this matter on 13th January 2021 on top of the Board.
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Frah Saeed is a law graduate specializing in the core field of indirect taxes and is the Co-founder of taxwallah.com. She has authored many publications on GST and is into full-time consultancy on GST to big corporates. She as a part of taxwallah.com heads a team comprising of Chartered Accountants and Advocates and plays a key role in our mission to disseminate GST knowledge to all.
