HC comes to taxpayers’ aid, postpones ITR filing deadline

The Bombay high court directed the Central Board of Direct Taxes (CBDT) to extend the date for e-filing of belated income tax returns for taxpayers required to file by December 31, 2024. Belated return, a last measure, allows taxpayers, who have not filed their tax returns to claim refunds

MUMBAI: The Bombay high court on Friday directed the Central Board of Direct Taxes (CBDT) to extend the date for e-filing of belated income tax returns for taxpayers required to file by December 31, 2024. Belated return, a last measure, allows taxpayers, who have not filed their tax returns during the financial year, to claim refunds and certain losses.

Mumbai, India - February 07, 2022: The Indian National flag flies half-mast on Bombay High Court building as a mark of respect to Lata Mangeshkar during the two-day national mourning being observed after she died on Sunday morning, in Mumbai, India, on Monday, February 07, 2021. (Photo by Bhushan Koyande/ HT Photo) (HT PHOTO)

Various taxpayer categories have distinct ITR filing deadlines. However, the final date for belated and revised returns is December 31 of the assessment year.

A bench of justice Devendra Upadhyaya and justice Amit Borkar, while listening to a Public Interest Litigation (PIL) filed by the Chamber of Tax Consultants through its president Vijay Bhatt, directed the Central Board of Direct Taxes to extend the deadline at least till January 15, 2025, to ensure all eligible taxpayers can claim the rebate.

The plea stated that the software update on July 5, 2024, arbitrarily disabled taxpayers from claiming rebate under Section 87A, Income Tax Act, 1961, while challenging the Income Tax department’s modifications to the utility software used for filing returns for the assessment year (AY) 2024-25.

The plea contended that the software modification not only violated statutory provisions but also undermined the legislative intent of providing tax relief to lower and middle income groups.

Bhatt’s counsels, Percy Pardiwala and Dharan Gandhi, argued that the software deprived eligible taxpayers of their rights, creating confusion and eroding confidence in tax administration.

The court observed that statutory benefits must be implemented in line with legislative objectives. Questioning whether procedural changes in the software could override taxpayers’ substantive rights, the court emphasised that since the rebate is inherently linked to total income and tax liability, it should not be restricted by administrative inefficiencies.

“Tax authorities must act as facilitators to help taxpayers comply with the law rather than creating impediments through technical or procedural hurdles. Ensuring fairness, equity, and transparency in tax administration is crucial for upholding public confidence in the system,” the bench stated.