Assessees' grievances due to 'ITR-Schema delay' deserves redressal, remarks Delhi HC reports Taxsutra

The Delhi High Court heard a writ petition filed by the Federation of Chartered Accountants Association (FCA) against the delay in releasing the Schema utility for e-filing of Income-tax Returns (ITRs) and Tax Audit Reports (TARs).

The FCA argued that the delay has caused hardships to tax practitioners and assessees, and that some assessees have even been burdened with interest and penalty despite filing their ITRs within the extended due date.

The Revenue Department questioned the FCA's locus standi, as no aggrieved assessee had approached the court. They also suggested a non-adversarial approach to the issue, which the court agreed to.

The Revenue Department explained that the delay in releasing the Schema is due to the numerous changes in the law, and that the filing deadline is extended from time to time to accommodate assessees.

The court remarked that in such cases, the Central Board of Direct Taxes (CBDT) should issue a circular to save assessees from the adverse consequences. T

he Revenue Department argued that Section 234A interest disciplines assessees for timely filing of ITRs, and that even those who are able to file their ITRs on time would take advantage of such a circular.

The court directed the FCA to array five assessees who are aggrieved due to the delay in releasing the ITR Schema. The court emphasized that even if one assessee is aggrieved, it is a cause of concern and deserves attention. The case has been listed for hearing on 23-Nov-2023.

Here are some additional points that can be included in the summary:

=> The FCA argued that the delay in releasing the Schema has caused hardships to tax practitioners in a number of ways, including:

->Increased workload due to the need to file ITRs and TARs at the last minute ->Increased risk of errors due to the lack of time to review and prepare the returns ->Financial losses due to the need to pay interest and penalties

=>The Revenue Department argued that the delay in releasing the Schema is necessary to ensure that the forms are accurate and up-to-date. They also argued that the extended filing deadlines provide sufficient time for assessees to file their returns.

The court's decision to direct the FCA to array 5 aggrieved assessees is a significant step in the case This will allow the court to hear directly from those who have been affected by the delay in releasing the Schema, and to get a better understanding of the impact of the delay