Court orders CBDT to address trust concerns on deductions in new e-filing format for AY 2021-22 & 2022-23 The court directed respondent no. 2/CBDT to examine and resolve concerns raised by petitioner trusts regarding the unavailability of deductions/rebates in ...
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Court orders CBDT to address trust concerns on deductions in new e-filing format for AY 2021-22 & 2022-23
The court directed respondent no. 2/CBDT to examine and resolve concerns raised by petitioner trusts regarding the unavailability of deductions/rebates in the new e-filing format for Assessment Year 2021-22 & 2022-23. The CBDT was instructed to treat the writ petitions as applications under Section 119 of the Income Tax Act, 1961, and provide a detailed response. A compliance hearing was scheduled for 09.11.2023, emphasizing actions based on the digitally signed copy of the judgment.
Issues involved: The writ petitions involve concerns regarding the switch from ITR-2 to ITR-5 e-filing functionality for Assessment Year (AY) 2021-22 & 2022-23, specifically related to deductions/rebates not being available in the new format for private discretionary trusts.
Judgment Details:
Issue 1: Availability of deductions/rebates for trusts The principal grievance raised by the trusts is the unavailability of deductions/rebates in the new e-filing format, despite being directed to switch from ITR-2 to ITR-5 for the mentioned assessment years. The respondents/revenue have reluctantly accepted this issue, but have suggested that the trusts can address their concerns in the "regular appellate forum" or by approaching the Central Board of Direct Taxes (CBDT) under Section 119 of the Income Tax Act, 1961.
Issue 2: Respondents' response and recurring problem The court finds the response of the respondents/revenue unsatisfactory, as the deductions/rebates should ideally be included in the Return of Income (ROI) itself. The judgment highlights that this is a recurring problem that needs to be addressed by the authorities, considering that similar issues may arise for other private discretionary trusts in the future.
Issue 3: Direction to CBDT for resolution In light of the persisting difficulty faced by the petitioner trusts and the failure of the respondents/revenue to resolve the glitch in the e-filing system, the court directs respondent no. 2/CBDT to examine the matter and resolve the concerns raised by the trusts. The CBDT is instructed to treat the writ petitions as applications under Section 119 of the Act and provide a detailed response, with a copy of the order to be shared with the petitioner trusts. The court schedules a compliance hearing for the parties on 09.11.2023, emphasizing that actions should be based on the digitally signed copy of the judgment.
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