TaxTMI 
TaxTMI 
2021 (1) TMI 649
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....the observations made by this High Court in the two above noted judgements, more particularly, the observations of the Supreme Court in the case of Vaghjibhai S. Bishnoi (supra) that the powers given to the CBDT are beneficial in nature to be exercised for proper administration of fiscal law so that undue hardship may not be caused to the taxpayers. The purpose is of just, proper and efficient management of the work of assessment and the public interest. One additional aspect needs to be kept in mind before taking any appropriate decision that the time period for the officials of the tax department has been extended upto 31st March 2021 having regard to the current covid­19 pandemic situation. If that be so, then some extension deserves to be considered in accordance with law. Let an appropriate decision be taken by 12th January 2021. 22 Post this matter on 13th January 2021 on top of the Board. 23 Mr. Patel, the learned Senior Standing Counsel appearing for the respondents Nos.2 and 3 shall apprise this Court of any decision or development in the matter on the next date of hearing." 2 Pursuant to the directions issued by this Court referred to above, the C....
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....mber, 2020. 4. The due dates for payment of self­assessment tax, for taxpayers whose amount due does not exceed rupees one lakh, also coincide with the due dates for filing of income tax returns. The table below summarises the various due date extensions given:­ S. No. Action Original Due date 1st Extension vide TOLA, 2020 2nd Extension vide Notification S.O.3906 (E) dated 29.10.2020 3rd Extension vide Notification S.O. 4805 (E) dated 31.12.2020 1 Return for Non-Audit Cases 31.07.2020 30.11.2020 31.12.2020 10.01.2021 2 Tax Audit 30.09.2020 31.10.2020 31.12.2020 15.01.2021 3 Return for Tax Audit Cases 31.10.2020 30.11.2020 31.01.2021 15.02.2021 5. Thus, it is apparent that the Government has not only considered representations of various stakeholders but also has been proactive in providing relaxation to the taxpayers by extending due dates regularly. The table below gives the statistical data comparing the return filing statistics of A.Y. 2019­20 and A.Y. 2020­21 Date - this year AY 20-21 ITRs filed Daily figures Date - last year AY 19-20 ITRS filed DAILY Figu....
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....that the Government of India has been very empathetic to the needs of the taxpayers as compared various other countries. It is apparent from the table no other country has extended the due dates as much as India. Even countries which are comparatively worse hit by COVID­19, like the USA, UK etc., have provided n o or lesser extensions in due dates. The table below lists such extensions given by a few countries: Country Financial period Individual Corporate Due date Extended due date Due date Extended due date USA 2019 15th April 2020 15th October 2020 15th April 2020 15th October 2020 UK 2019-2020 31 January 2021 No extension 31st December 2020 No extension Australia 2018-2019 5th May 2020 5th June 2020 15th May 2020 5th June 2020 South Africa 2019 16th November 2020 No extension 31st December 2020 No extension Netherlands 2019 1st May 2020 No extension 1st June 2020 No extension Ireland 2019 12th November 2020 10th December 2020 12th November 2020 10th December 2020 Singapore 2019 18th April 2020 31st May 2020 15th December 2020 ....
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.... for the same in the counter affidavit filed by the Government, (unless it is shown to be totally capricious or whimsical). [State of Bihar vs. Ramjee Prasad 1990(3) SCC 368, Union of Indian & Anr. vs. Sudhir Kumar JaiswaI1994(4) SCC 212 (vide para 5), Ramrao & Ors. vs. All India Backward Class Bank Employees Welfare Association & Ors. 2004 (2) SCC 76 (vide para 31), University Grants Commission vs. Sadhana Chaudhary & Ors. 1996(10) SCC 536, etc .] When it is seen that a line or a point there must be and there is no mathematical or logical way of fIxing it precisely, the decision of the legislature or its delegated must be accepted unless it can be said that it is very wide off the reasonable mark. (See Union of India & Anr. v. Mis Parameshwaran match works Ltd., 1975 (2) SCR 573, at p. 579; and Dr. (Mrs.) Sushma Sharma etc. etc. v. State of Rajasthan & Ors. 1985 (3) SCR 243, at p. 269) 2. In view of the above reasons, all the representations for further extension of the due date are hereby rejected." 4 Thus, it appears that the CBDT has taken the final decision not to extend the due date any further and accordingly, rejected all the representations. 5 The decision t....
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.... utility with additional requirements in the midst of the year. The directions issued by this Court in the two judgements referred to above have been completely defied. 13 It is argued that this High Court extended the due date in the decision reported in 2015 (61) taxmann.com 431, even while the other High Courts declined to do so. 14 It is argued that by extending the time period, as prayed for, no hardship is going to be caused to the Revenue, whereas, if the time period is not extended, the writ applicants will be put to immense difficulties. 15 Mr. Soparkar, once again, invited our attention to the following chart: ITR/TAR Form Due date of filing (original) Clear days expected from 01.04.2020 Date of availability of e-filing utility Schema updation date Utility updation date Extended due date Effective days available with taxpayers and the tax professiona ls from utility availability ITR 3 31.10.2020 214 days 31.07.2020 29.08.2020 09.11.2020 11.01.2021 11.01.2021 15.02.2021 199 days ITR 5 31.10.2020 214 days 25.08.2020 30.09.2020 13.11.2020 11.01.2021 11.01.2021 15.02.2021 174 days ITR 6 31.....
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.... of not only the tax payers but also the tax professionals. 19 Mr. Avinash Poddar, the learned counsel appearing with Mr. Vishal J. Dave and Mr. Nipun Singhvi, the learned counsel for the writ applicants of the connected writ application submitted that they would adopt all the submissions canvassed by Mr. S. N. Soparkar referred to above and noted above. ● SUBMISSIONS ON BEHALF OF THE RESPONDENTS: 20 On the other hand, both the writ applications have been vehemently opposed by Mr. Zoheb Hossain assisted by Mr. Varun K. Patel and Mr. Nikunt K. Raval, the learned counsel appearing for the respondents. 21 Mr. Hossain would submit that the principal argument canvassed on behalf of the writ applicants as regards the delay in releasing the utilities for filing the Tax Audit Reports and Income Tax Returns has been blown out of proportion. It is argued that the changes brought about in the ITR by way of an update do not amount to adding or extending the fields. It is only increasing or making changes in the character of the existing fields to enable certain minuscule taxpayers to report correctly which they might not have been able to otherwise. 22 It is argued that....
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.... 75,031 17,42,354 2,41,964 8-Jan-21 3,316 29,924 20,17,558 24-Oct-19 10,977 87,350 18,40,681 1,76,877 09-Jan-21 2,824 26,097 20,46,479 25-Oct-19 11,841 93,575 19,46,097 1,00,382 10-Jan-21 1,416 16,370 20,64,265 26-Oct-19 10,366 91,397 20,47,860 16,405 11- Jan-21 4,320 41,970 21,10,555 27-Oct-19 2,309 30,861 20,81,030 29,525 12-Jan-21 8,690 85,663 22,04,908 28-Oct-19 6,138 59,785 21,46,953 57,955 13-Jan-21 29-Oct-19 10,119 1,00,569 22,57,641 14-Jan-21 30-Oct-19 23,125 1,87,444 24,68,210 15-Jan-21 31-Oct-19 42,280 31,15,190 28,25,680 Grand Total cumulative 2,27,814 19,77,094 22,04,908 Grand Total cumulative 2,88,236 25,37,444 28,25,680 -6,20,772 (2) From the above data, it is evident that there has been a huge leap in filing of the tax audit reports and from 10.01.2021 the daily filings have increased 4 to 5 times as on 12.01.2021. On 10.01.2021, t....
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....ed the returns filed in comparison to last year on a similar date. A chart to this effect is as under: Asst year AY 2020-21 a on 12th Jan 2021 AY 2019-20 as on 28th Sep 2019 Difference ITR - 3 83,98,573 79,18,513 4,80,060 ITR -5 10,68,479 7,68,756 2,99,723 ITR - 6 4,82,981 2,38,168 2,44,813 This is comparison for AY 2019­20 (due date 31st Oct 2019 for all ITRs with TAR) and AY 20­21 (due date 15th Feb 2021 for all ITRs with TAR): 34 days prior to extended due date for equivalent comparison (7) Indisputably, the assessees would have at least 148 days to upload their returns from 22/09/2020 the date when the ITR­6 was made available till 15.02.2021 which is the date when the return for the Audit Cases is to be filed. The writ applicants have not been able to establish any prejudice caused to the Assessee or indicate any rational nexus between their inability to prepare their Final Accounts and Tax Audit Reports and the availability of the utility for various forms from June 2020/September 2020 onwards. (8) The Supreme Court has consistently held that in financial matters judicial deference may be s....
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....foresaid submissions, the learned counsel have relied upon the following case law: (1) Government of Andhra Pradesh vs. N. Subbarayudue and others (2008) 14 SCC (paras 5 to 8) (2) Ramrao and others vs. All India Backward Class Bak Employees Welfare Association (2004) 2 SCC 76 (para 31 to 33) (3) Union of India and another vs. Sudhir Kumar Jaiswal (1994) 4 SCC 212 (paras 5 to 7) (4) University Grants Commission vs. Sadhana Chaudhary (1996) 10 SCC 536 (para 21) (5) RK Garg vs. Union of India (1981) 4 SCC 675 (para 8) (6) Union of India vs. Nitdip Textile Processors Pvt Ltd (2013) 1 SCC 226 (para 66) (7) Supreme Court's order dated 20th March 2020 In Union of India vs. PD Sunny and others in SLP(C) No.10669 of 2020 24 It is also brought to our notice that the High Court of Kerala and the High Court of Allahabad had passed orders issuing general directions to the various departments like the banks, financial institutions, income tax authorities, authorities dealing with the erstwhile KVAT, GST, recovery of tax on motor vehicles and building tax to defer the recovery proceedings or coercive measures till a particular ....
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....rns results in tax payment that the government needs. Further extension will adversely affect return filing discipline and shall cause injustice to those who have filed before due date. (5) Reliance is placed on Supreme Court decisions to submit that due date is not arbitrarily decided and the same may not be disturbed." 27 Mr. Soparkar would submit that the CBDT still owes an answer to the following: (a) the delay in releasing the utilities by 4­6 months despite repeated orders of various High Courts. (b) amendments in the Rules and Tax Audit Return form in the middle of the year (c) No hardship is likely to be caused to the revenue if the due date is extended (d) Why the writ applicants should not be treated at par with the revenue officers for whom the due date is extended to 31.03.2021 28 Mr. Soparkar submitted that the comparison of the ITR filed on 31st August 2019 and 10th January 2015 is fundamentally flawed. The reason being that by 31st August 2019, only the non­Tax Audit Returns would have been filed, whereas by 10th January 2015, both the Tax Audit as well as the non­Tax Audit Returns would have been filed. ....
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.... of the difficulties which have been pointed out by the learned Senior Counsel appearing for the writ applicants so far as the present litigation is concerned. However, the moot question for this Court to consider is as to where to draw the line. In other words, to what extent the High Court in exercise of its writ jurisdiction should interfere with the decision taken by the respondents, more particularly, when it comes to Revenue. 35 Before an applicant could get a writ of mandamus or an order in the nature of mandamus, he has to satisfy the court that the following conditions are fulfilled. (a) The applicant has a legal right; (b) The opposite party has a legal duty; (c) The application is made in good faith; (d) The applicant has no other alternative remedy; and (e) The opposite party has refused relief, i.e. demand and refusal. 36 Mandamus is one of the prerogative writs issued by the superior courts (High Court or Supreme Court), which is in the shape of command to the State, its instrumentality or its functionaries to compel them to perform their constitutional / statutory/public duty. 23. A writ of mandamus is an extraordina....
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...., "11. The principles on which a writ of mandamus can be issued have been stated as under in The Law of Extraordinary Legal Remedies by F.G. Ferris and F.G. Ferris, Jr.: Note 187.­Mandamus, at common law, is a highly prerogative writ, usually issuing out of the highest court of general jurisdiction, in the name of the sovereignty, directed to any natural person, corporation or inferior court within the jurisdiction, requiring them to do some particular thing therein specified, and which appertains to their office or duty. Generally speaking, it may be said that mandamus is a summary writ, issuing from the proper court, commanding the official or board to which it is addressed to perform some specific legal duty to which the party applying for the writ is entitled of legal right to have performed. Note 192.­Mandamus is, subject to the exercise of a sound judicial discretion, the appropriate remedy to enforce a plain, positive, specific and ministerial duty presently existing and imposed by law upon officers and others who refuse or neglect to perform such duty, when there is no other adequate and specific legal remedy and without which there would ....
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....keep subordinate tribunals and officers exercising public functions within the limit of their jurisdiction. It follows, therefore, that in order that mandamus may issue to compel the authorities to do something, it must be shown that there is a statute which imposes a legal duty and the aggrieved party has a legal right under the statute to enforce its performance.... In the instant case, it has not been shown by Respondent 1 that there is any statute or rule having the force of law which casts a duty on Respondents 2 to 4 which they failed to perform. All that is sought to be enforced is an obligation flowing from a contract which, as already indicated, is also not binding and enforceable. Accordingly, we are clearly of the opinion that Respondent 1 was not entitled to apply for grant of a writ of mandamus under Article 226 the Constitution and the High Court was not competent to issue the same. Therefore, in order that a writ of mandamus may be issued, there must be a legal right with the party asking for the writ to compel the performance of some statutory duty cast upon the authorities...." 42 Mandamus is the most valuable and essential remedy in the Administrative ....
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....rroneous the conclusion reached may be, and although there may be no other method of review or correction provided by law. The discretion must be exercised according to the established rule where the action complained has been arbitrary or capricious, or based on personal, selfish or fraudulent motives, or on false information, or on total lack of authority to act, or where it amounts to an evasion of positive duty, or there has been a refusal to consider pertinent evidence, hear the parties where so required, or to entertain any proper question concerning the exercise of the discretion, or where the exercise of the discretion is in a manner entirely futile and known by the officer to be so and there are other methods which it adopted, would be effective." (emphasis supplied)" 45 A prerogative writ, like, a Mandamus cannot be demanded ex debito justiatiae, but it can be issued by the court in its discretion, for which, it must be shown that, there is a non discretionary legal duty upon the authority against whom, the relief is sought for and that the person approaching the High Court under Article 226 of the Constitution of India, has to prove that he has a legal right to be enf....
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....nt, the hardships caused to the assesses on account of delay in providing the utilities. However, this Court had to interfere in a situation when for the first time by way of a Notification the CBDT made it mandatory for the assessees to electronically file the Income Tax Returns relevant for the assessment year 2013­14 and onwards. 48 Although Mr. Soparkar, the learned Senior Counsel has criticized the manner in which the decision is taken by the CBDT not to extend the time limit any further, yet we believe that such decision must have been taken after due deliberations, and in taking such decision, many financial experts must have applied their minds. It is true that the Board is vested with the power under Section 119 of the Act to extend the due date and the powers are discretionary in nature and that is the reason why we thought fit to ask the CBDT to look into the matter and take an appropriate decision in accordance with law. If the CBDT has looked into the matter closely and has arrived at the conclusion that the extension of time limit would not be in the interest of the Revenue, then it cannot be said that the CBDT has failed to exercise its discretionary powers ve....