The Central Board of Direct Taxes (“CBDT”) vide Order dated 20th August under section 119 of the Act, has extended 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 September, 2014 to 30th November, 2014. However the Order is silent on the extension of due date for filing the Return of Income.
The CBDT vide Notification No.33 dated July 25, 2014 has notified new Form No. 3CA, Form No. 3CB and Form No. 3CD for furnishing Audit Report u/s 44AB of the Income Tax Act, 1961 [Tax Audit Report]. Various new clauses have been added while many others have been amended. The new clauses and the amended clauses require auditor to certify the correctness of figures having a direct impact on the total income of the assesse.
The Tax Audit report is the basis of computation of income. Various deductions and disallowances are quantified in the Tax Audit Report to be included in the return of income.
It is respectfully submitted that the relief sought to be provided by the CBDT by granting extension of time for filing the Tax Audit Report without a corresponding extension of due date for filing the Return of Income would not serve the desired purpose. It will actually necessitate filing of the Return of Income without audited figures in respect of various deductions and disallowances being available.
Considering the substantial changes made in the new Form 3CD, in principle and to be fair and just, the new requirement should not have been made retrospectively applicable to the Financial Year 2013-2014 [Asst. Year 2014-2015] as that causes severe hardship to the assessees as well as the auditors. Instead of deferring this to Financial Year 2014-2015 [Asst.Year 2015-2016], only the date of obtaining and furnishing Tax Audit Report has been extended and that too, without making consequential extension in the due date of furnishing the Return of Income for the Asst.Year 2014-2015 [Financial Year 2013-2014] and hence, this extension is effectively meaningless.
As such, the extension granted for obtaining and furnishing of the report of audit under section 44AB would not provide relief to the assessees and the hardships faced would continue. In fact, many returns may not have correct figures and the return of income filed without audited figures being available may need to be revised after obtaining the Tax Audit Report, particularly in case of non-corporate assessees. This would lead to avoidable duplication of work as well as additional time and costs to be incurred by assesses as well as the Department (having to process a large number of revised returns).
Hence to provide the desired relief to assessees, it is earnestly requested that either the applicability of new form of Tax Audit Report should be deferred to the next year [Financial Year 2014-2015] to avoid it’s retrospective applicability [which is the just and fair thing to do] or atleast, the due date for filing the return of income for the Assessment Year 2014-15 for all assessees (other than assessees who are required to furnish report under section 92E of the Act) liable to Tax Audit should be extended to 30th November 2014 i.e. the date upto which extension has been granted to obtain and furnish the Tax Audit Report.
We trust you would find merit in our above genuine request and accede to the same.Your early action in the matter will be highly appreciated.
Thanking you.
Yours Sincerely
Bombay Chartered Accountant Society
Nitin Shingala President,
Kishor B. Karia Chairman Taxation Committee
Sanjeev R. Pandit Co-Chairman
