Taxation
Non-filing of I-T return for assessees is subject to tax audit before 30th September

The CBDT order has created a lot of confusion among taxpayers and tax professionals by not specifying the due date for filing the income tax returns

 

The Central Board of Direct Taxes (CBDT) has vide its above order extended the due date for e-filing of Tax Audit Report to 30 November 2014 for AY2014-15 from 30 September 2014. The order has not mentioned anything about the due date for e-filing of Income tax Return (ITR). It seems the due date for filing of ITR has been kept the same, viz. 30th September 2014.  The Assessee’s who are covered under tax audit provisions of section 44AB, but not under transfer pricing provisions as required by section 92E, do not file the ITR on or before 30 September, 2014, may have the following implications:-


1. He may have to pay interest u/s 234A of the Income Tax Act, 1961 on taxes outstanding.


2. Losses if any may not be allowed to be carried forward under the provisions of section 80 Read with section 139(3) of the Income tax Act, 1961.


3. To claim deduction of statutory expenses falling under section 43B, the assessee will have to pay these statutory dues on or before the filing of ITR or the due date of filing the return (due date of return of income-ROI is 30 September 2014), whichever is earlier.


4. Some of the deductions i.e. under Section 10A, which requires the assessee to file his return on or before the due date specified under sub section (1) of section 139, may not be allowed to the assessee.


5. If the assessee is not able to file his return on or before 30 September 2014, he may not be able to revise his return of income.


6. In true terms for the tax professional as evident from the Order, there is no extension of date for submission of tax audit report as most of the professionals prepare the ITR only after completion of tax audit report. This is so because certain disallowances are directly linked to the tax audit findings.


7. The tax audit report has to be filed by the chartered accountant through his login ID on the I-T website under client's PAN, which the client has to accept and only then can the return be filed. In such circumstances if the return filing date is not also extended the clarification issued has no meaning.

 

The CBDT Order has created a lot of confusion amongst the taxpayers and tax professionals by not specifying the due date for filing the ITR. The CBDT needs to immediately clarify its stand on the due date for ITR filing. A simple sentence adding the line in bold given below would have made things clearer:


“In exercise of power conferred by section 119 of the Income-tax Act (‘the Act’), the Central Board of Direct Taxes (CBDT) hereby extends the due date for obtaining and furnishing of the report of audit under section 44AB of the Act for Assessment Year 2014-15 in case of assessees who are not required to furnish report under section 92E of the Act from 30th day of September, 2014 to 30th November, 2014 and consequently also extend the due date for filing the return of income under section 139 for all assessees covered under section 44AB to 30th November, 2014.


Just that simple addition would have avoided all the confusion. In fact there is still time for the CBDT to come out with a clarification to the clarification already issued to clear the air of confusion which has been brought to bear on the tax filing community.

(Girish Borkar is a Mumbai-based Chartered Accountant and a managing partner of M/s Borkar & Shenoy, Chartered Accountants. He can be contacted at [email protected])

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COMMENTS

rs

2 years ago

Please review the title in the first instance

shivkumar

2 years ago

Be it Company Law or Income Tax Law, the authorities seem to excel in creating confusion where none exist. So much for simplification,

Mumbai EOW unearths Rs1,000 crore bank FD fraud

According to reports, Mohammed Fashiuddin of Showman Group is the mastermind of this fixed deposit racket, estimated to be about Rs1,000 crore involving several PSU and private banks

 

The Economic Offences Wing (EOW) of Mumbai police on Thursday said it has unearthed a largescale banking fraud worth about Rs1,000 crore related with fixed deposits (FDs) in several banks. So far, the EOW said it has registered 10 first information reports (FIRs) against several people, including some officials from banks.

 

According to reports, banks involved in this large scale FD fraud include, Dena Bank, UCO Bank, Syndicate Bank, Bank of Baroda, Vijaya Bank, Dhanalaxmi Bank, Bank of India and Indian Overseas Bank among others. Among the institutions who were victims of the fraud are the Mumbai Metropolitan Regional Development Authority (MMRDA) and South Indian Education Society (SIES) Trust.

 

"The mastermind of the scam is reported to be Mohammed Fashiuddin of the Showman Group. So far, four of the accused have been arrested. Searches and raids are ongoing at offices and homes of some of the accused," says a report from Business Standard.

 

Last week Dena Bank and Oriental Bank of Commerce initiated action against bank officials following reports of Rs436.7 crore fraud in their branches. Dena Bank officials allowed Rs256.69 crore transfer through overdraft facility, while OBC transferred Rs180 crore received from Jawaharlal Nehru Port Trust (JNPT) as bulk deposit to one Padmavati International.

 

JNPT had already filed a case with Central Bureau of Investigation (CBI) and the matter is under investigation.

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COMMENTS

Dipakkumar J Shah

2 years ago

Dear Mr. Shah,

We refer to your appended e-mail of August 25, 2014 addressed to Head Service Quality.

We asked Mr.Modi to provide his 12-digit account number, contact details to assist him further.

We assure best of your services at all times.

Sincerely,

Vamsi Priya
Office of Head Service Quality

CONFIDENTIALITY INFORMATION AND DISCLAIMER

"This e-mail message may contain confidential, proprietary or legally privileged information. It should not be accessed by anyone who is not the original intended recipient. If you have erroneously received this message, please delete it immediately and notify the sender.You will appreciate that e-mail transmission cannot be guaranteed to be secure or error-free as its contents are susceptible to loss, damage, interception, destruction, etc. Before opening any attachments please check them for viruses and defects.The notice appended to the emails is not intended to prejudice the interests of our customers in any manner or to evade responsibility for any act of done with the endorsement of ICICI Bank."
Dear Mr Modi,
Kindly give me reply at [email protected]
They are sking some details .
Shah D J

CIC website believes only Obama is 'RTI News'!

The portal of Central Information Commission which ought to be full of information, is dull, irrelevant and useless! Find out why

 

Honestly, the worst part of the Right to Information (RTI) Act 2005 is not the misuse of the Act, as most public information officers (PIOs) would have us believe, for their own convenience, but it is the shoddy, irresponsible and irrelevant website of the Central Information Commission – www.cic.gov.in.


Firstly, the look is archaic and that’s curious because it is the same National Informatics Center www.nic.in which constructs websites for all the central government departments of India. For example, the websites of the Prime Minister's Office (PMO) or the Ministry of Environment & Forests (MoEF) are far more vibrant, interactive and upload current events, notices, reports and so on.


However, the CIC website, which being the center of information for the public should ideally be the most transparent, people-friendly and information-packed, is one which is cut-off from it. Let us see how:


The first joke about www.cic.gov.in is that it gives the phone numbers of all its former chief information commissioners and information commissioners but when it comes to the present commissioners, it decides to withhold their contacts. So, does the CIC want people to contact former commissioners in case of an issue? Or are the present commissioners happy without the people contacting them?  This curious decision is certainly deliberate and cannot be by an oversight. Please see under this: List of Former Chief Information Commissioners & Information Commissioners


While the RTI movement in India has been robust with innumerable success stories from all parts of the country including tiny villages, besides urban cities, the www.cic.gov.in website has its latest success story of 2008 titled  `Sir, did you cut on my dam’ See here: RTI -:- Success Stories – 2008 Sir, did you get a cut on my dam?

What takes the cake is the News on RTI. The Chief Information Commission does not find any RTI news in India worthwhile for its website but finds US President Barack Obama as most relevant.

As for press clippings and press releases they are dated 27 September 2012 to 4 September 2013 (press clippings)

 

And 16 April 2008 to 22 November 2013 (press releases)

 

So when was the last important letter sent from CIC or to CIC and one which has been marked as `new?’. Well, in 2013, there was one which came from Mexico City thanking an information commissioner for attending the Transparency Week in Mexico.


 

The important events as per Chief Information Commission go back to an award in 2009.

See here: Chief Information Commissioner has been awarded as the 'Person of the Year' by the Skoch Summit 2009 held at India Habitat Centre, New Delhi on 23 January 2009


 

As for RTI presentations by the CIC, it is India’s First Chief Information Commissioner who made a presentation in 2008.

 

As for notifications, the latest date goes back to 2009. The latest notification is on extension of the time of the Sub-Committee for finalising the report of 2009!
 

 

There have been just five meetings held in 2014 up to July. What is interesting in this update is the minutes of meeting held on 4 February 2014. It is marked as “new”, while minutes of meeting held after that, are not even marked.
 

 

So, had there been no Supreme Court ruling pertaining to RTI since October 2013? As per the www.cic.gov.in, there has been none.

 

As for High Court rulings, the `newest’ ruling is from February 2014.

 


(Vinita Deshmukh is consulting editor of Moneylife, an RTI activist and convener of the Pune Metro Jagruti Abhiyaan. She is the recipient of prestigious awards like the Statesman Award for Rural Reporting which she won twice in 1998 and 2005 and the Chameli Devi Jain award for outstanding media person for her investigation series on Dow Chemicals. She co-authored the book “To The Last Bullet - The Inspiring Story of A Braveheart - Ashok Kamte” with Vinita Kamte and is the author of “The Mighty Fall”.)

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COMMENTS

manhar kothari

2 years ago

Other day i spoke to CIC office and informed that even though i sent on line appeal application duly singed through speed post CIC web site,status of appeal shows signed appeal not revived.
Gentleman asked for date of Speed post date and after verifying his record informed having received my paper and provided me diary number.
Ministry who is in charge of CIC must take corrective actions.

manhar kothari

2 years ago

Other day i spoke to CIC office and informed that even though i sent on line appeal application duly singed through speed post CIC web site,status of appeal shows signed appeal not revived.
Gentleman asked for date of Speed post date and after verifying his record informed having received my paper and provided me diary number.
Ministry who is in charge of CIC must take corrective actions.

Sushila Pursnani

2 years ago

The site of SEBI sucks too.

You can't make a complain for NISM it promotes, their is simply no option available.

cjkarira

2 years ago

I made a Complaint to the CIUC on thsi very same issue in May 2012. Sent 7 (Seven) reminders subsequently, met everyone from the Chief Commissioner down to the Peon. Nothing happened !
http://www.rtiindia.org/forum/96260-comp...

Veeresh Malik

2 years ago

I don't like going to the "new" CIC office in Bhikaji Cama Place. Apart from the fact that the approaches smell of urine, lots of urine, fact remains that the "waiting rooms" and whole business of signing registers and signing in for RTI Applicants are shabby and dirty and demeaning, while the PIOs / AAs and other Public Authorities are given highly favoured treatment from the time they enter. If this is the attitude, that Public Authorities are to be treated as favourites from outside itself, then we have a mismatch right from the start.

RTI at CIC has become pathetic.

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