Gujarat High Court rejects petition seeking extension of due date for tax audit reports, ITR filing

New Delhi: The Gujarat High Court has rejected the writ application seeking extension of deadline of filing income tax returns and tax audit reports for the assessment year 2020-21 in view of Covid 19 pandemic. It said CBDT may consider issuing   an   appropriate   circular   taking   a  lenient  view   as  regards the consequences of late filing of tax audit reports. It left it to the better discretion of CBDT. The court had asked the centre to reconsider the deadlines. The central board of direct taxes or CBDT in its order had stated that it would not grant extensions for filing ITRs and audit report.

The last date for filing ITR in non-audit cases was January 10 and in cases of audit cases is February 15. Deadline for filing tax audit report was extended till January 15 this year. Businesses with turnover exceeding Rs 1 crore in any previous year are needed to file an audit report.

The court gave its verdict on the petition of the All India Gujarat Federation of Tax Consultants filed last year. The latter had made a representation in October 2020 seeking extension of due dates. CBDT in its order had said that the tax collections assume great significance in these difficult times of Covid19 pandemic and the government needs revenue to carry out relief work for the poor and other responsibilities. Any delay in filing returns affects collection of taxes and other welfare functions of the state for the vulnerable and weaker sections of society which is funded through the revenue collected. 

"Any further extension would adversely affect the return filing discipline and shall also cause injustice to those who have taken pains to file returns before the due date," the Board had added in its order. 

CBDT has already extended the due dates on three occasions.

According to the Board, extension given by the Indian government is more generous than other countries and any further extension would hamper the efforts of the government to provide relief to the poor during Coronavirus pandemic.