Court Urges Prompt Resolution of Portal Glitches Impacting Tax Filings The court addressed challenges faced by the assessee in uploading audit reports for income tax returns due to technical glitches in the Portal. It ...
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Court Urges Prompt Resolution of Portal Glitches Impacting Tax Filings
The court addressed challenges faced by the assessee in uploading audit reports for income tax returns due to technical glitches in the Portal. It acknowledged the impact of Circular No.17/2021 and emphasized the need for prompt resolution of technical issues to ensure timely filing. The court directed authorities to address the glitches promptly and scheduled further hearings to monitor progress. The judgment refrained from immediately deciding on extending the filing deadline, noting that penalties, interest, and late fees would be considered during final assessment, with the option for the assessee to explain circumstances beyond their control.
Issues: 1. Difficulty faced by the assessee in uploading audit report for income tax return filing. 2. Grievance regarding technical glitches in the Portal affecting audit report upload. 3. Request for extension of deadline for filing audit report. 4. Concerns about penalties, interest, and late fees due to delayed filing. 5. Need for resolution of technical issues in the Portal by the authorities.
Analysis:
1. The judgment addresses the challenges encountered by the assessee in uploading the audit report for filing income tax returns. The court acknowledges the difficulties faced by the assessee and considers the impact of Circular No.17/2021 issued by the Ministry of Finance Department of Revenue, CBDT, which has caused grievances due to certain clarifications provided.
2. The counsel representing the writ applicants highlights the mandatory requirement of generating the Unique Document Identification Number (UDIN) for audit reports since 01.07.2019. The technical glitches in the Portal have made it arduous for Chartered Accountants to upload audit reports even after generating UDIN, potentially leading to interest, late fees, and penalties under various sections of the Act if returns are not filed on time.
3. The senior counsel for the respondents contests the apprehensions raised by the writ applicants, assuring to provide a detailed response to clarify the actual situation. The court emphasizes the necessity for prompt resolution of any technical issues in the Portal to facilitate smooth uploading of audit reports and timely filing of returns.
4. A request is made by the counsel for the petitioners to extend the deadline for filing the audit report, which the court refrains from deciding immediately. The judgment emphasizes that issues related to penalties, interest, and late fees will be considered during the final assessment, with the option for the assessee to explain circumstances beyond their control when required.
5. The court directs the authorities to address the technical glitches promptly as they fall within the realm of the respondent's control. Mention is made of Circular No.01/2022 dated 11.01.2022, extending the timeline for filing income tax returns and audit reports for A.Y. 2021-22. The matter is scheduled for further hearing on 08.02.2022 to allow the respondents to file their counter, with ongoing monitoring of progress on resolving technical issues in the Portal.
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