Gujarat High Court refused to give interim relief for tax audit report date submission in a case filed by CAAS: To consider the technical glitches issue in Next Hearing

 

The bold and dynamic Chartered Accountants Association, Surat (CAAS)  has very timely filed the petition praying for non-levy of interest, penalty, etc because of technical glitches of the portal.

Since the counsel for CBDT was seeking more time to reply and denying the requirement for an urgent hearing of the matter on the portal issues, counsel immediately pointed out the TAR upload issue with respect to UDIN which was an urgent requirement and was necessary in view of the deadline of 15^th Jan 2022 ahead. Counsel appealed for an interim relief for TAR upload date to be extended to 15.02.2022 as it is either way not going to affect the revenue of the Government.

Gujarat High Court refused to give interim relief for tax audit report submission. Why only Surat CA Association filing the case? CA’s from other parts are not facing this issue? – Gujarat High Court Remarked

The court further says that for levy of penalty, there is an opportunity which is given to the assessee to explain the reason for delay. Since the penalty is not automatic, there is no point in extending the date for this reason. Gujarat High Court refused to give interim relief for tax audit report submission. There are lessons to learn for future courses of action. CA’s of the country need to draw the right conclusion from the judgment.

On the issue of Technical glitches as reason for late fees & interest waive, it asked the Government to look into the technical glitches. The income tax department can only look into the technical glitches, it remarked. Court also refused to interfere with the date of extension of TAR for this reason. The matter is adjourned for two weeks to make the submission by the department.

 In short, the Court option is over with this for 15^th Jan 2022 deadline extension and it’s again the finance ministry which can do for the date extension. But now the chances are meager.

There were various issues which were pointed out for date extension by the counsel appearing for the CA Association which includes:

1. Technical glitches

2. Issue in UDIN Generation and uploading

3. Applicability of interest u/s 23A & 234B

4. Delay in return filing if the audit is not completed

None of these submissions were able to influence the court who criticized the CA lobby of Surat for this issue.

The learned counsel for the department submitted that the Government has already extended the dates twice and so no need to extend the date further is there. Counsel pleaded that the assessee can file the return. He has assured to make the submission within 2 weeks on technical glitches to the Gujarat High Court.

It may be carefully noted that the Hon’ble Gujarat High Court has not declined this prayer. The Court said they are not inclined at this point in time and that they will impress upon the respondents to file their reply and bring that on record. To be more precise, the Hon’ble Gujarat High Court has noted the following:

“We once again impress upon the respondents to attend to the technical glitches which are being experienced in the portal at the earliest. Portal is something which is within the control of the respondents and if there are any technical problems in the same, it is only the respondents who can take care of such problems.

The further progress in the matter w.r.t. the technical glitches shall be reported to us on the next date of hearing.”

The CAAS is a strong body of CA’s wherein not only members from Surat are there but also from other parts of the country are the members. Let us hope that during the next hearing for the glitches at the portal, the court may be able to appreciate the total facts and working of the portal. The final copy of the order is expected by evening.

Let all the auditors get back to work as the adamancy of the Finance Ministry would be a little MORE higher with this judgment.

 

Rohit Sharma

[www.thetaxtalk.com]