Bombay High Court Directs CBDT to Extend ITR Filing Deadline
Introduction
On December 20, 2024, the Bombay High Court issued an important directive to the Central Board of Direct Taxes (CBDT) (@IncomeTaxIndia). The court instructed the CBDT to extend the deadline for filing revised and belated Income Tax Returns (ITR) for the financial year 2023-24 to at least January 15, 2025. This move was made to ensure that taxpayers eligible for relief under Section 87A of the Income Tax Act have adequate time to exercise their statutory rights.
Key Details of the Court Order
The directive was part of the proceedings in Public Interest Litigation (L) No.32465 of 2024, filed by The Chamber of Tax Consultants through its President, Vijay Bhatt, against the Director General of Income Tax (Systems) & Ors.. The court emphasized the importance of procedural fairness for taxpayers and directed the CBDT to issue the requisite notification under Section 119 of the Income Tax Act to extend the deadline.
Court's Observations
In its order, the court noted:
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The original deadline for filing revised and belated ITRs was December 31, 2024.
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Taxpayers eligible for the Section 87A rebate faced procedural impediments due to the tight timeline.
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Extending the deadline to January 15, 2025, would allow taxpayers to comply without undue pressure.
Current Situation
Despite the High Court's directive, as of now, no official notification has been issued by the CBDT to extend the deadline. This has led to confusion among taxpayers who are awaiting clarity on the matter.
Implications for Taxpayers
The lack of a notification leaves taxpayers in a precarious situation, especially those relying on the extended timeline to fulfill their filing obligations. Timely compliance is crucial for individuals claiming rebates or seeking to avoid penalties for late filing.
Next Steps
Taxpayers are advised to:
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Monitor Official Announcements: Keep a close eye on updates from the CBDT on the Income Tax India website or its official social media handles.
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File Proactively: While awaiting the notification, taxpayers who can complete their filings before December 31, 2024, should do so to avoid last-minute challenges.
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Seek Professional Guidance: Consult a tax advisor to ensure compliance with the existing deadlines and prepare for potential changes.
Conclusion
The Bombay High Court's directive underscores the importance of procedural fairness in tax compliance. However, the delay in issuing the notification raises concerns about administrative responsiveness. Taxpayers must remain vigilant and prepared for updates while hoping for timely action from the authorities to honor the court's order.