Status of Tax Audit Report date extension


Status of Tax Audit Report date extension

Kerala as well as Gauhati High Court have sought for a reply from the revenue regarding the petition filed by the petitioners. The matter is adjourned for ten days, without an interim order or direction.

The wait for the extension will not solve any issue as last week Central Board of Direct Taxes (CBDT) had confirmed that there will be no further extension of tax audit due date. The hope in form of judicial pronouncement is still alive but no one knows what will be ultimate outcome of the Gauhati HC & Kerala HC after 10 days.

Let’s see what happened at Gauhati High Court Today:

The High Court of Gauhati has issued notice to CBDT to file Counter to the date extension. In the court, it was argued that the frequent changes in the utility and schema and various amendments made in Form 3CD after 01.04.2018 have made it practically difficult for the accountants to file the tax audit report within 31.10.2018.

Further, there are penalty and even prosecution in respect of a CA for filing false TAR (Tax Audit Report). Further, interest provisions of Section 234A have also not been waived for the extended period.

The Hon’ble Court after hearing both sides have been pleased to issue notice in the case and asked the respondents including CBDT to file its reply in the matter.

The matter shall now be taken up for hearing after the filing of reply by the respondents The motion was made with reference to the earlier direction issued by the Court to the CBDT for consideration of the request of the Association for further extension.

The status as of now tells that the due date for uploading the income tax return and the tax audit report form for the FY 2017-18 is 31st of October 2018.

If any further relaxation is given by revenue, it will be useful for those assessee who failed to file the return till 31.10.2018 for any reason whatsoever.

Now, all the Chartered Accountants and tax payers need to focus on work completion and  need to finally forge the date extension.

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