Income taxpayers to get time beyond May 31 for filing appeal

 








CBDT to consider SC’s order and decide on extending the period of limitation for filing appeal; matter listed for May 27

The Central Board of Direct Taxes (CBDT) has said that taxpayers will get more time for filing appeal beyond May 31.

The board is apex policy making body for Income Tax and Corporate Tax.

In a circular, the board clarified that if different relaxations are available to the taxpayers for a particular compliance, the taxpayer is entitled to the relaxation which is more beneficial to him. Thus, “for the purpose of counting the period(s) of limitation for filing of appeals before the (CIT-Appeals) under the Act, the taxpayer is entitled to a relaxation which is more beneficial to him and hence the said limitation stands extended till further orders as ordered by the Supreme Court in Suo Motu Writ Petition (Civil) No.3 of 2020 vide order dated April 27, 2021.”


On April 30, the board issued a circular providing various relaxations till May 31, including extending time for filing the appeals before Income Tax Commissioner (CIT-Appeals). At the same time, the Supreme Court, in an order directed that “the period(s) of limitation, as prescribed under any General or Special Laws in respect of all judicial or quasi-judicial proceedings, whether condonable or not, shall stand extended till further orders.”

A public interest litigation (PIL) was filed in Madhya Pradesh High Court seeking extension for a period less than/ before the general extension granted by the Supreme Court. During the hearing on May 24, counsel for the tax body informed the Court that CBDT will duly consider the order of the Supreme Court and will take an appropriate decision for extending the period of limitation for filing the appeal. Now, the matter has been listed for May 27.

Commenting on the circular, Rakesh Nangia, Chairman of Nangia Andersen India, said that the present circular has been issued by CBDT in response to remarks by the Madhya Pradesh High Court, where it had sought clarification from the CBDT on extending the due date of filing appeals only May 31 2021, whereas the Supreme Court has extended the due date until further orders (i.e,. till the time the Supreme Court considers it fit to extend the timelines, considering the impact of Covid-19).

“The CBDT circular is clearly beneficial to the taxpayers, where it is not possible for them to adhere to the May 31 timeline and need additional time for filing the appeals. The CBDT circular again reflects that the Government is flexible to extend compliance timelines to reduce hardships of taxpayers,” he said.


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