Income Tax - extension of due date for filing returns for those who have to get their accounts audited - Several High Courts direct CBDT to extend date - When is it coming?
IT HAS COME!
DDT asked this question on Friday and also observed, "We understand that the CBDT is seriously working on extending the date, but why did they push all these assessees to the High Courts?"
DDT is happy to report that on Friday itself, CBDT extended the date. The Board noted,
"Writ petitions have also been filed in various High Courts for directing the Board to extend the due date for furnishing of return of income from 30th September, 2014 to 30th November, 2014 in conformity with the extension of the due date for filing of tax audit report.
The High Court of Madras passed interim order on 24.09.2014 and directed the Board to consider the request of the assessees in general and consider the extension of time for furnishing the return of income. It has been reported that the High Court of Judicature at Hyderabad disposed the writ petition with a direction to the Board to dispose of the representation of the petitioners. The High Court of Bombay disposed of writ petition vide order dated 25.09.2014 and directed the Board to look into the practical difficulties of the petitioners and take a just and proper decision in this matter.
The Gujarat High Court allowed Special Civil Application No.12656 of 2014 with Special Civil Application No.12571 of 2014 and vide judgement dated 22.09.2014 directed the Board to modify the order under section 119 of the Act dated 20.08.2014 by extending the due date for furnishing the return of income to 30th November, 2014."
So, in compliance to the judgement of High Court of Gujarat and after considering the representations made for extension of due date for furnishing of return of income in compliance with the directions of the other High Courts, the Board, in exercise of power conferred by section 119 of the Act, has extended the `due-date? for furnishing return of income from 30th September, 2014 to 30th November, 2014 for the assessment year 2014-15 for all purposes of the Act, in case of an assessee, who,
(i) is required to file his return of income by 30th September, 2014 as per clause (a) of Explanation 2 to sub-section (1) of section 139 of the Income-tax Act, 1961; and
(ii) is also required to get his accounts audited under section 44AB of the Act or is a working partner of a firm whose accounts are required to be audited under section 44AB of the Act.
However the Board has clarified that there shall be no extension of the "due date" for the purposes of Explanation 1 to section 234A (Interest for defaults in furnishing return) of the Act and the assessees shall remain liable for payment of interest as per the provisions of section 234A of the Act.
What then is the purpose of the extension? The assessee has to pay interest for the lapse of the Board!
CBDT Order Section 119 in F.No.153/53/2014-TPL (Pt.I)., Dated: September 26, 2014