Delhi HC: IT Software should have been tested prior in time on a sufficiently large sample base of assessees before it is launched for public at large

Last updated: 02 September 2021

Court :
Delhi High Court

Brief :
In Krishan Agarwal Vs. PCIT [W.P.(C) 3459/2021 & C.M.No.10489/2021, W.P.(C) 8371/2021& C.M.No.25917/2021, W.P.(C) 5513/2021, W.P.(C) 5583/2021 & CM APPL. 17357/2021 dated August 27, 2021], the Hon'ble Delhi High Court vide Order 3459/ 2021 and 8371/2021 had observed that technology should be used to ease and facilitate transactions and not become a basis for harassing an assessee by asking him to repeatedly file unnecessary and irrelevant forms. It directed the Directorate of Income Tax (Systems) ('DGIT (Systems)') to modify the software of filing returns accordingly.

Citation :
W.P.(C) 3459/2021 & C.M.No.10489/2021, W.P.(C) 8371/2021& C.M.No.25917/2021, W.P.(C) 5513/2021, W.P.(C) 5583/2021 & CM APPL. 17357/2021 dated August 27, 2021

In Krishan Agarwal Vs. PCIT [W.P.(C) 3459/2021 & C.M.No.10489/2021, W.P.(C) 8371/2021& C.M.No.25917/2021, W.P.(C) 5513/2021, W.P.(C) 5583/2021 & CM APPL. 17357/2021 dated August 27, 2021], the Hon'ble Delhi High Court vide Order 3459/ 2021 and 8371/2021 had observed that technology should be used to ease and facilitate transactions and not become a basis for harassing an assessee by asking him to repeatedly file unnecessary and irrelevant forms. It directed the Directorate of Income Tax (Systems) ('DGIT (Systems)') to modify the software of filing returns accordingly.

In pursuance of the above-mentioned orders, DGIT(Systems) joined the proceedings in the current listed order wherein the Hon'ble Delhi High Court heard petitions while taking into account the contention put forth by DGIT (Systems) which pleaded that it is making the best effort to resolve the software issues flagged in the impugned orders. Added that the Assessing Officer ('the AO') books a ticket in the occurrence of issues raised in the computer programme or software which is then either resolved or sent to another vertical.

The Hon'ble Delhi High Court thereby observed that the public at large should only be asked to use the software after it has been 'tested prior in time on a sufficiently large sample base of assessees'. Programme should be made flexible enough to incorporate the implementation of the Court's orders.