The CBDT vide order
dated 20th August, 2014 extended the due date for obtaining and furnishing of
Tax Audit Report under section 44AB of the Act for AY 2014-15 from 30.09.14 to
30.11.14. Subsequently, a number of requests were made for extension of the due
date for furnishing of return of income also. Writ petitions were also filed in
various High Courts for directing the CBDT to extend the due date ffrom
30.09.14 to 30.11.14 for furnishing of return of income in conformity with the extension of the due
date for filing of Tax Audit Report.
It was logical to also extend the due date for
filing of the I-T return to 30.11.14 as the due date for filing of the tax audit report was extended till November
30 (due to late Introduction of several changes in Form 3CD),
However, such extension was granted subject to
charge of interest under Section 234A for the period commencing from 01-10-2014
and up to the actual date of filling the return of income. Interest under
section 234A will not be levied if taxpayer covered under tax audit provisions
pays the tax on or before 30.09.2014.
The levy of interest under section 234A of the
Income Tax Act,1961 is unjustified and against the provisions of the law. If
the penalty was levied, the purpose of extending the due date of filing the I-T
return itself was defeated. The Madras
high court granted an interim stay on the levy of interest U/S 234A for
Interest from 1.10.14 till filing of Return. It held, “I-T returns shall be
accepted by tax authorities without any levy of interest
under section 234A.”
