Petition to Modify Tax Form Dismissed; Court Directs Concerns to Tax Board for Resolution within 12 Weeks.

The HC dismissed the petitioners' request for a mandamus to modify Form ITR-2 for electronic filing as individuals for private discretionary trusts. The Court determined it was not within its jurisdiction to grant such relief and directed the petitioners to submit their concerns to the Central Board of Direct Taxes (CBDT) for resolution. The CBDT is instructed to address these representations within twelve weeks. The writ petitions were disposed of without costs.

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Issues involved:
The petitioners, family trusts claiming status of private discretionary trusts, seek mandamus to modify Form ITR-2 for electronic filing as individuals and to prevent coercive actions for assessment years 2019-20, 2021-22, and 2022-23. The petitioners also seek amendment for future assessment years.

Judgment Details:

Issue 1: Status of Private Discretionary Trusts
The petitioners argue that private discretionary trusts should be assessed as individuals, citing legal precedents. They refer to judgments in Commissioner of Wealth Tax v. Trustees of H.E.H Nizam's Family, Commissioner of Income-Tax v. Venu Suresh Sanjay Trust, and Commissioner of Income tax v. Shriram Ownership Trust to support their claim.

Issue 2: E-Filing Relaxation for Private Discretionary Trusts
The petitioners rely on a press release by the Central Board of Direct Taxes (CBDT) granting relaxation from compulsory e-filing for private discretionary trusts for assessment year 2012-13. They claim to have benefited from this exemption in the past but faced challenges in e-filing from AY 2019-2020 onwards, affecting their ability to claim deductions.

Issue 3: Modification of Return Form
The respondents argue that private discretionary trusts should be taxed under specific sections of the Income Tax Act and that allowing them to file returns as individuals using ITR-2 would be inappropriate. They contend that the requested modifications are unnecessary and redundant for trusts with total income exceeding Rs. 2 crores, urging rejection of the petitioners' plea.

Court's Decision
After hearing arguments from both parties, the Court concludes that granting the mandamus sought by the petitioners is not within its purview. It directs the petitioners to file representations before the Central Board of Direct Taxes for appropriate remedy, to be disposed of within twelve weeks. The Court emphasizes that the Board is the competent authority to address the petitioners' concerns regarding Form modifications. The writ petitions are disposed of accordingly, with no costs incurred.

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