2014 (9) TMI 795

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....lenges Notification dated 25 July 2014 passed by the Government of India in exercise of powers under Section 295 read with Section 44 AB of the Income-tax Act 1961 (the Act) introducing a new format for Tax Audit Reports; (b) seek a direction to the Central Board of Direct Taxes (CBDT) to extend the time for filing Income Tax Returns from 30 September 2014 to 30 November 2014. This is on the basis the time to furnish the Audit Report under Section 44 AB of the Act has been extended from 30 September 2014 to 30 November 2014. This petition relates to Assessment Year (AY) 2014-2015. 3. Dr.Shivaram, learned senior Advocate for the Petitioners has placed on record the order passed by the learned Single Judge of Madras High Court dated 24 ....

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.... would require time and the Audit would not normally be complete before the date of filing Return on 30 September 2014. This it is submitted would result in the Petitioners declaring an income which may consequent to the Audit be inaccurate / incorrect. The present practice of filing Income Tax Return along with the Audit Report or post the Audit Report ensures that the income offered to tax had been scrutinised and it has been properly declared. b) The consequence of the Tax Audit not being performed prior to filing Return of Income would result in the Petitioners declaration of Income being erroneous requiring the assessee to file a Revised Return of Income. This Revised Return of Income would entail the Petitioners as mentioned in the....

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....e burden without providing adequate / reasonable time without appreciating that audit is not merely a formality but a statutory duty, non-compliance of which leads to attraction of penal provisions under the Act. 6. In view of the fact that the Hon'ble Madras High Court has already directed the CBDT to examine the representation of the assessees in general, before 30 September 2014, we feel it appropriate that the above representation of the Petitioners is also considered by CBDT. Though we do not wish to express any view of the legalities of various issues involved, it does appear to us, from the arguments advanced, that there will be substantial hardship caused to the assessees, if the date of filing Return is not suitably extended....