Request for Extension of Income Tax Due Dates and Time Barring Assessments

The Lucknow CA Tax Practitioners Association has requested the Finance Minister Smt. Nirmala Sitharaman to extend various due dates under the Income Tax Act, together with the time barring date for the assessments which require a personal hearing, due to the rising cases of COVID-19. Read the official Representation Letter below:

Lucknow CA Tax Practitioners Association

To,
Shri Pramod Chandra Mody
Hon'ble Chairman
Central Board of Direct Taxes,
North Block,
New Delhi-110001.

Respected Sir,

Sub: REPRESENTATION FOR EXTENSION OF TIME LIMIT FOR COMPLETION OF TIME BARRING ASSESSMENT FOR A. Y. -2018-19 AND VARIOUS DUE DATES UNDER THE INCOME-TAX ACT 1961.

EXTENSION OF TIME LIMIT FOR TIME BARRING ASSESSMENTS

The Lucknow CA Tax Practitioners' Association is a not for Profit and a Voluntary body of Chartered Accountants practicing in the field of Taxation and allied laws. It is always the endeavor of Lucknow CA Tax Practitioners' Association to be the forum from where the grievances of our esteemed members and taxpayers can be put forth before the Government on matters concerning betterment of Taxation Laws.

Owing to recent surge in COVID cases around the country and the covid cases (in a day) touching highest in the world, the situation has become very critical due to lack of medical infrastructure, shortage of Oxygen and shortage of essential medicines for covid treatment. Many states including Delhi and Rajasthan have already declared lockdown. In Uttar Pradesh Honorable High Court Allahabad taken Suo Moto cognizance of the Covid crisis asked UP Govt. to impose Lockdown Which Govt refused, however the situation is like Lockdown only and many trade organizations have imposed Lockdown on voluntary basis. The public is involved in treatment of their near and dear and there is 'fear' amongst the public at large to go to work place and lot of people have curtailed their movement and have isolated them at home. Owing to all these factors, it is becoming very difficult to make compliance of the notices for the Assessments which are time barring as on 30th. April, 2021.

The sharp increase in the Covid Cases followed by increase in deaths owing to Covid, various High Courts and smaller Courts have stopped the functioning of the Benches.

The Hon'ble Supreme Court of India has also taken suo moto cognizance of the Covid crisis and referred that the country is in a state of 'National Emergency' and directed the Central Government to submit the Action Plan.

Further, it is seen that many Officers in the Department are getting Covid Positive and thus it is not getting possible to complete the assessment in a fair and proper manner. Not only the Department Officers but even the Counsel being Chartered Accountants and Advocates are also being affected by this sudden spread of COVID Virus and as a result the time barring cases could not be properly attended or complied with by the Counsels and this may lead to passing of expartee orders and creation of fictitious demands.

It is also necessary to bring to your kind attention that in Search and Seizure Cases which are still being conducted through physical hearing, it is getting difficult for the Counsels and even for the department officers to properly make compliance of the notices.

In view of the above changing scenario owing to COVID Pandemic, it is prayed that the date for time barring assessment which is due on 30.04.2021 may kindly be extended up till 30.06.2021 and provide succor.

EXTENSION OF TIME LIMIT FOR REVISION OF ITR FOR AY 2020-21

It is submitted that the time limit for revision of ITR for AY 2020-21 as prescribed u.s 139(5) of It Act is as under:

"(5) If any person, having furnished a return under sub-section (1) or sub-section (4), discovers any omission or any wrong statement therein, he may furnish a revised return at any time before 54(***) the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.!"

Thus, the ITR filed for AY 2020-21 u/s 139(1) or section 139(4) can be revised uptill 31.03.2021 only. It is pertinent to mention that during the pandemic year the CBDT extended the due dates for filing of ITR for AY 2020-21 on various occasions, the last date being 15.02.2021. Thus there was very less time available to revise the ITR after filing the Original ITR.

Further, CBDT issued certain compliance notices through Compliance Portal under income tax e-filing Profile. The said communications were send at the fag end of the year i.e. on the last week before 31.03.2021. The purpose of sending the communication through 'Compliance Portal' was to intimate the tax payer regarding any error or omission in filing of ITR. Owing to the reason that communications were send very late, many taxpayers could not rectify any mistake arising after viewing the 'Compliance Portal'.

In view of the above, it is most humbly requested that considering that the time available for filing of revised ITR was very little and further compliance notices were issued very late, time limit to revise the ITR for AY 2020-21 should be extended up till 30.06.2021 so that the taxpayers have sufficient time and opportunity to rectify the mistakes/omission arising through 'Compliance Portal'

EXTENSION OF TIME LIMIT FOR PAYMENT OF TAXES UNDER THE DIRECT TAX VIVAD SE VISHWAS SCHEME 2020

It is humbly requested that the CBDT vide Notification no. 09/2021 in S.O. 964(E) dated 26/02/2027 extended the date for payment of Tax without additional amount under VSV uptill 30th April, 2021. However, owing to sudden surge in covid cases, many of the taxpayers and their immediate families are covid effected and are either hospitalized or under home isolation. In all such cases Form 1 and 2 have been duly filed within the time limit, however Form 3 have been issued by Income Tax Department recently in the first week of April 2021. Thus, it is getting extremely difficult to pay the taxes within the period specified in the aforesaid notification. Hence, it is requested that the time limit for payment of taxes without additional amount may kindly be extended uptill 30.06.2021 considering the recent rise in cases in the month of April 2021 itself.

EXTENSION OF TIME LIMIT FOR DEPOSIT OF TDS/TCS DEDUCTED /COLLECTED IN THE MONTH OF MARCH 2021 AND IN THE MONTH OF APRIL 2021

It is prayed that that under the existing provisions of the Act, TDS/TCS deducted/collected in the month of March 2021 has to be deposited by 30th April 2021. Similarly, TDS/TCS collected/deducted in the month of April 2021 has to be deposited by 7th May 2021. However, due to Covid crisis, taxpayers are unable to deposit the TDS/TCS within the due date. It is therefore requested that considering the emergency status of the Country, relief should be provided to taxpayers by easing the compliance by way of extending the time limit as under:

Further, the due dates for filing TDS returns- Form 26Q, 24Q and 27Q should also be extended accordingly for the fourth Quarter of the FY 2020-21.

We humbly request your good self to take immediate action in the matter enlightened above so that genuine tax payers do not suffer on account of such issues and harmony is maintained amongst taxpayers and the environment remains conducive for taxpayers.

With Regards,
FOR LUCKNOW CA TAX PRACTITIONERS ASSOCIATION

(PRESIDENT)
CA. Sujeet Kumar Singh
Place: Lucknow
Mailed at: chairman.cbdt@incometax.gov.in

Also Read: Extension of various Income Tax and GST Due Date Compliances requested by CAIT