R/Special Civil Application v. Union Of India & 1 Other(S

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/SPECIAL CIVIL APPLICATION NO. 591 of 2022 With R/SPECIAL CIVIL APPLICATION NO. 586 of 2022=============================================THE SOUTHERN GUJARAT INCOME TAX BAR ASSOCIATION, SURAT VersusUNION OF INDIA & 1 other(s) ============================================= Appearance: MR.AVINASH PODDAR(9761) for the Petitioner(s) No. 1MR.VISHAL J DAVE(6515) for the Petitioner(s) No. 1NIPUN SINGHVI(9653) for the Petitioner(s) No. 1M R BHATT & CO.(5953) for the Respondent(s) No. 2MR DEVANG VYAS(2794) for the Respondent(s) No. 1============================================= CORAM: HONOURABLE MR. JUSTICE J.B.PARDIWALAandHONOURABLE MS. JUSTICE NISHA M. THAKORE Date : 21/01/2022 ORAL ORDER (PER : HONOURABLE MR. JUSTICE J.B.PARDIWALA) 1.Since the issues raised in both the captioned writapplications are the same, those were taken up for hearinganalogously and are being disposed of by this common order. 1.1For the sake of convenience, the Special Civil ApplicationNo.591 of 2022 filed by the Southern Gujarat Income Tax BarAssociation, Surat is treated as the lead matter. 2. By this writ application under Article 226 of theConstitution of India, the writ applicant has prayed for thefollowing reliefs: “(a) Your Lordships may be pleased to pass a Writ of Mandamusor any other appropriate Writ, Order or direction, directing theor any other appropriate Writ, Order or direction, directing the Respondent No. "1" and/or "2" to extend the due date of filingof Tax Audit Report and the Income Tax Returns for theassessment year 2021-2022 till March 31, 2022; (b) To issue a writ of mandamus or any other appropriate writ,order or direction, directing the respondents not to levy interestunder section 234A till the revised due dates provided videCircular 17/2021 dated 09.09.2021; (c) Your Lordships may be pleased to pass a Writ of Mandamusor any other appropriate Writ, Order or direction to issueappropriate directions to authorities for accepting the TAR and/or ITR in physical form till the New Income Tax Portal stabilizesand becomes glitch free; (d) Your Lordships may be pleased to pass a Writ of Mandamusor any other appropriate Writ, Order or direction to not invokeSection 271B for late filing of the audit report and the physicalfiling be sufficient compliance of the Section; (e) Pending admission, hearing and final disposal of thisPetition, Your Lordships may be pleased to direct respondentsto allow filing of TAR/ITR in physical form to jurisdictionalauthorities; (f) Your Lordships may be pleased to grant any other relief orreliefs' as this Hon'ble Court may deem just, fit and expedientbe granted in favour of the Petitioner.” 3.We need not delve much into the facts giving rise to thislitigation as our order passed in this very matter dated12.01.2022 would make the picture abundantly clear. Theorder dated 12.01.2022 reads thus: “1Since the issues raised in both the captioned writapplications are the same, those were taken up for hearinganalogously. 2For the sake of convenience, we treat the Special CivilApplication No.591 of 2022 as the lead matter. 3This writ application has been filed by the Southern GujaratIncome Tax Bar Association, Surat, through its Secretary,seeking the following reliefs: “(a) Your Lordships may be pleased to pass a writ ofmandamus or any other appropriate writ, order ordirection, directing the respondent No.1 and /or 2 to extendthe due date of filing of Tax Audit Report and the IncomeTax Returns for the assessment year 2021-2022 till March31, 2022. (b) To issue a writ of mandamus or any other appropriatewrit, order or direction, directing the respondents not tolevy interest under section 234A till the revised due dates provided vide circular 17/2021 dated 09.09.2021. 2For the sake of convenience, we treat the Special CivilApplication No.591 of 2022 as the lead matter. 3This writ application has been filed by the Southern GujaratIncome Tax Bar Association, Surat, through its Secretary,seeking the following reliefs: “(a) Your Lordships may be pleased to pass a writ ofmandamus or any other appropriate writ, order ordirection, directing the respondent No.1 and /or 2 to extendthe due date of filing of Tax Audit Report and the IncomeTax Returns for the assessment year 2021-2022 till March31, 2022. (b) To issue a writ of mandamus or any other appropriatewrit, order or direction, directing the respondents not tolevy interest under section 234A till the revised due dates provided vide circular 17/2021 dated 09.09.2021. (c) Your Lordships may be pleased to pass a writ ofmandamus or any other appropriate writ, order or directionto issue appropraite directions to authorities for acceptingthe TAR and/or ITR in physical form till the New Income TaxPortal stabilizes and becomes glitch free; (d) Your Lordships may be pleased to pass a writ ofmandamus or any other appropriate writ, order or directionto not invoke section 271B for late filing of the audit reportand the physical filing be sufficient compliance of theSection; (e) Pending admission, hearing and final disposal of thispetition, Your Lordships may be pleased to directrespondents to allow filing of TAR / ITR in physical form tojurisdictional authorities; (f) Your Lordships may be pleased to grant any other reliefor reliefs’ as this Hon’ble Court may deem just, fit andexpedient be granted in favour of the petitioner.” 4We have heard Mr. Tushar Hemani, the learned SeniorCounsel assisted by Mr. Avinash Poddar, Mr. Nipun Singhvi, thelearned counsel appearing for the writ applicants and Mr.Devang Vyas, the learned Additional Solicitor General of Indiaappearing for the respondents on an advance copy served uponhim. 5This litigation has something to do with extension of duedate of filing of Tax Audit Report and the Income Tax Returnsfor the assessment year 2021-2022 and levy of interest underSection 234A of the Income Tax Act, 1961 (for short, “the Act,1961”). 6 We had an occasion to deal with one such litigationyesterday in the form of the Special Civil Application No.272 of2022. We passed the following order in the said matter dated11th January 2022: “1. We have heard Mr. Avinash Poddar and Mr. NikulSinghavi, the learned counsel appearing for the writapplicants, Mr. M.R. Bhatt, the learned senior counselappearing for the respondent No.2 and Mr. Devang Vyas,the learned Additional Solicitor General of India appearingfor the respondent No.1 – Union of India. 2. We have been able to understand to some extent thedifficulties, which are being experienced by the assessee inuploading the audit report for the purpose of filing the itsincome tax return. Our attention has also been drawn tothe Circular No.17/2021 issued by the Ministry of FinanceDepartment of Revenue, CBDT dated 09.09.2021 withrespect to extension of the time limit for filing income taxreturns and various reports of audit for the A.Y. 2021-22.Prima facie, it appears that the writ applicants areaggrieved by the clarification 1 in the Circular. Clarification1 reads thus: “Clarification 1: It is clarified that the extension of thedates as referred to in clauses (9), (12) and (13) ofCircular No.9/2021 dated 20.05.2021 and as referredto in clauses (1), (4) and (5) of this Circular shall notapply to Explanation 1 to section 234A of the Act incases where the amount of tax on the total income asreduced by the amount as specified in clauses (I) to(vi) of sub-section (1) of that section exceeds one lakhrupees.” “Clarification 1: It is clarified that the extension of thedates as referred to in clauses (9), (12) and (13) ofCircular No.9/2021 dated 20.05.2021 and as referredto in clauses (1), (4) and (5) of this Circular shall notapply to Explanation 1 to section 234A of the Act incases where the amount of tax on the total income asreduced by the amount as specified in clauses (I) to(vi) of sub-section (1) of that section exceeds one lakhrupees.” 3. The learned counsel appearing for the writ applicantspointed out that for the purpose of uploading the auditreport, the assessee has to generate the Unique DocumentIdentification Number (for short “the UDIN”). This has beenmade mandatory from 01.07.2019 for all audit. Thegrievance voiced by the learned counsel appearing for thewrit applicants is that on account of technical glitches inthe Portal, the Chartered Accountants are finding it verydifficult to upload the audit report. In other words, evenafter generating the UDIN on account of some technicalproblems in the Portal, the audit reports are not beinguploaded. Once the audit report is not uploaded and thereturn is not filed in time, the some would entail interestunder Sections 234A and 234B respectively, late feesunder Section 234F and penalty under Section 271B of theAct respectively. 4. Mr. M.R. Bhatt, the learned senior counsel would submitthat the apprehension expressed by the writ applicants inthe aforesaid regard is not well founded. Mr. Bhatt, thelearned senior counsel would like to file a detailed replyexplaining the correct position. At this stage, we may onlysay that if there are any technical problems with the Portalso far as uploading of the audit report is concerned, thesame should be attended and looked into by the Authorityconcerned at the earliest. 5. Mr. Poddar, the learned counsel made a request that thedeadline of 15.01.2022 for the purpose of filing the auditreport may be extended to 15.02.2022. We are not inclinedto go into this controversy at this point of time. The issuesof penalty, interest etc. would arise when the final order ofassessment is passed. Even for the purpose of penaltyunder Section 271B, it is necessary to issue a notice to theassessee. If the assessee has not been in a position to filehis return in time on account of his inability to upload theaudit report on account of technical glitches in the Portal,he can always point out all such circumstances beyond hiscontrol when he is called upon to show cause as to whypenalty should not be imposed. 6. However, with all the aforesaid, we once again impressupon the respondent to attend to the technical glitches,which are being experienced in the Portal at the earliest.The Portal is something which is within the control of therespondent and if there are any technical problems in thesame, it is only the respondents, who can take care of suchproblems. At this stage, Mr. Devang Vyas, the learned Additional Solicitor General of India received informationthat CBDT has issued a Circular No.01/2022 dated11.01.2022 extending the timeline for filing the income taxreturn and various reports of audit for the A.Y. 2021-22.The due date of furnishing of Report of Audit under anyprovision of the Act for the Previous Year 2020-21, whichwas 30th September, 2021, in the case of assesseesreferred in clause (a) of Explanation 2 to subsection (1) ofSection 139 of the Act, as extended to 31st October, 2021and 15th January, 2022 by Circular No.9/2021 dated20.05.2021 and Circular No.17/2021 dated 09.09.2021respectively, is hereby further extended to 15th February,20222. The due date of furnishing of Report of audit underany provision of the Act for the Previous Year 2020-21which was 31st October, 2021, in the case of assesseesreferred in clause (aa) of Explanation 2 to sub-section (1) ofSection 139 of the Act, is hereby extended to 15[th] February,2022. 7. Post this matter on 08.02.2022 to enable therespondents to file their counter. One copy of the countershall be furnished to the learned counsel appearing for thewrit applicants well in advance. The further progress in thematter with regard to the technical glitches shall bereported to us on the next date of hearing. One copy each of this order shall be furnished at theearliest to Mr. M.R. Bhatt, the learned senior counsel andMr. Devang Vyas, the learned Additional Solicitor Generalof India for its onwards communication.” 7 In view of the aforesaid, the time period for filing of the TaxAudit Report and the Income Tax Returns has been extendedupto 15[th] February 2022. We once again take notice of thecircular No.1 of 2022, which came to be issued by the CBDTdated 11[th] January 2022. We deem fit to reproduce the entirecircular as under: “Circular No.01/22 F.No.225/49/2021/ITA-II Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes ***** New Delhi, dated 11[th] January 2022 Subject : Extension of timelines for filing of Income-taxreturns and various reports of audit for the AssessmentYear 2021-22-reg. On consideration of difficulties reported by the taxpayersand other stakeholders due to COVID and in electronicfiling of various reports of audit under the provisions of theIncome-tax Act,1961 (Act), the Central Board of DirectTaxes (CBDT), in exercise of its powers under Section 119of the Act, provides relaxation in respect of the followingcompliances: 1. The due date of furnishing of Report of Audit under anyprovision of the Act for the Previous Year 2020-21, whichwas 30 th September 2021, in the case of assesseesreferred in clause (a) of Explanation 2 to subsection (1) ofsection 139 of the Act, as extended to 31 st October 2021and 15 th January 2022 by Circular No.9/2021 dated20.05.2021 and Circular No.17/2021 dated 09.09.2021respectively, is hereby further extended to 15[th] February,2022; 2. The due date of furnishing of Report of Audit under anyprovision of the Act for the Previous Year 2020-21, whichwas 31 st October, 2021, in the case of assessees referredin clause (aa) of Explanation 2 to subsection (1) of section139 of the Act, is hereby extended to 15[th] February, 2022; 3. The due date of furnishing of Report from an Accountantby persons entering into international transaction orspecified domestic transaction under section 92E of the Actfor the Previous Year 2020-21, which was 31 st October2021, as extended to 30 th November 2021 and 31 stJanuary 2022 by Circular No.9/2021 dated 20.05.2021 andCircular No.17/2021 dated 09.09.2021 respectively, ishereby further extended to 15[th] February, 2022; 4. The due date of furnishing of Return of Income for theAssessment Year 2021-22, which was 31 st October 2021under sub-section (1) of section 139 of the Act, asextended to 30 th November 2021 and 15 th February2022 by Circular No.9/2021 dated 20.05.2021 and CircularNo.17/2021 dated 09.09.2021 respectively, is herebyfurther extended to 15[th] March, 2022: 5. The due date of furnishing of Return of Income for theAssessment Year 2021-22, which was 30 th November2021 under sub-section (1) of section 139 of the Act, asextended to 31 st December 2021 and 28 th February 2022by Circular No.9/2021 dated 20.05.2021 and CircularNo.17/2021 dated 09.09.2021 respectively, is herebyfurther extended to 15[th] March, 2022. Clarification 1: It is clarified that this extension shall notapply to Explanation 1 to section 234A of the Act, in caseswhere the amount of tax on the total income as reduced bythe amount as specified in clauses (i) to (vi) of sub-section(1) of that section exceeds one lakh rupees. 5. The due date of furnishing of Return of Income for theAssessment Year 2021-22, which was 30 th November2021 under sub-section (1) of section 139 of the Act, asextended to 31 st December 2021 and 28 th February 2022by Circular No.9/2021 dated 20.05.2021 and CircularNo.17/2021 dated 09.09.2021 respectively, is herebyfurther extended to 15[th] March, 2022. Clarification 1: It is clarified that this extension shall notapply to Explanation 1 to section 234A of the Act, in caseswhere the amount of tax on the total income as reduced bythe amount as specified in clauses (i) to (vi) of sub-section(1) of that section exceeds one lakh rupees. Clarification 2: For the purpose of Clarification 1, in case ofan individual resident in India referred to in sub-section (2)of Section 207 of the Act, the tax paid by him under section140A of the Act within the due date (without extensionunder circular No.9/2021, Circular No.17/2021 and thiscircular) provided in that Act, shall be deemed to be theadvance tax. Sd/- (Ravinder Maini) Director to the Government of India” 8We take notice of the fact that although the time period hasbeen extended upto 15[th] February 2022, yet the Clarification 1in the circular would indicate that the extension would not applyto Explanation 1 to Section 234A of the Act, in cases where theamount of tax on the total income as reduced by the amount asspecified in clauses (i) to (vi) of sub-Section (1) of Section 234Aif it exceeds one lakh rupees. 9Mr. Hemani, the learned Senior Counsel made one furtherrequest that having regard to the technical glitches in the portal,the assessees may be permitted to file TAR / ITR in the physicalform to the jurisdictional authority. According to Mr. Hemani, itshould not happen that although the time period has beenextended upto 15th February 2022, yet on account of thetechnical glitches in the portal, the assessees are not able tomake good the extended period. 10 In the aforesaid context, we request Mr. Devang Vyas, thelearned Additional Solicitor General of India to speak to thehighest authority concerned and try to ascertain whether thedepartment would be agreeable to accept the filing of the TAR /ITR in the physical form. We request the authority concerned totake a practical view of the problems which the assessees arefacing as on date on account of the technical glitches in theportal. The authority should not overlook this fact and try tosolve the problems or rather ease the difficulties which theassessees are facing. 11We appreciate the decision taken by the CBDT to extendthe time period upto 15[th]February 2022, but the assesseesshould be in a position to make the best of this extended timeperiod. Mr. Hemani is right to a certain extent that if thetechnical glitches are going to continue, then even extension offurther three months would not solve the problems. 12Let Notice be issued to the respondents, returnable on 17[th]January 2022. 13We request Mr. Vyas to discuss this matter at the earliestwith the highest authority concerned and revert to us by thereturnable date. One copy of this order shall be furnished to Mr.Vyas today itself for its onward communication. We permitservice of notice to the respondents by Speed Post R.P.A.D. aswell as by E-mail.” 4.We have heard Mr. Tushar Hemani, the learned SeniorCounsel assisted by Dr. Avinash Poddar and Mr. Nipun Singhvi,the learned counsel appearing for the writ applicant, Mr. M.R.Bhatt, the learned Senior Counsel assisted by Mr. KaranSangani, the learned counsel, appearing for the respondentNo.2 – Central Board of Direct Taxes and Mr. Devang Vyas, thelearned Additional Solicitor General of India appearing for the Union of India. 13We request Mr. Vyas to discuss this matter at the earliestwith the highest authority concerned and revert to us by thereturnable date. One copy of this order shall be furnished to Mr.Vyas today itself for its onward communication. We permitservice of notice to the respondents by Speed Post R.P.A.D. aswell as by E-mail.” 4.We have heard Mr. Tushar Hemani, the learned SeniorCounsel assisted by Dr. Avinash Poddar and Mr. Nipun Singhvi,the learned counsel appearing for the writ applicant, Mr. M.R.Bhatt, the learned Senior Counsel assisted by Mr. KaranSangani, the learned counsel, appearing for the respondentNo.2 – Central Board of Direct Taxes and Mr. Devang Vyas, thelearned Additional Solicitor General of India appearing for the Union of India. 5.Manifold contentions were raised by Mr. Hemani, thelearned Senior Counsel appearing on behalf of the writapplicant as regards manifold reliefs prayed for in the presentlitigation. One of the reliefs prayed for was to extend the timeperiod for filing the Tax Audit Reports and the Income TaxReturns. The second relief which has been prayed for is topermit the assesses to file their TAR/ITR in physical form till thenew Income Tax portal is able to take care of all the technicalglitches. The writ applicant has also prayed for an appropriatewrit, order or directions to the respondents not to invokeSection 271B for late filing of the Audit Report and the Physicalfiling should be construed as sufficient compliance of theSection. 6.After the order dated 12.01.2022 referred to above, thematter was taken up for hearing on 17.01.2022. On17.01.2022, Mr. Vyas and Mr. Bhatt, both together madethemselves very clear that it is not feasible to permit theassesses to file their Income Tax Returns or Tax Audit Reportsin a manual form. According to both the learned Counsel, thesystem itself would not permit or accept the same for thepurpose of the assessment of such Returns. Having regard tosuch stance of the respondents, we called upon Mr. Vyas andMr. Bhatt to file an affidavit, duly affirmed by the highestauthority, assuring that if there are any technical glitchesexperienced or any other difficulties faced by the assesseswhile filing their Returns or Tax Audit Reports, those would bedefinitely taken care of at the earliest so that the assessesmay not have to face the legal consequences of any delay in uploading the Returns/Tax Audit Reports. 7.Today, when the matter was taken up for hearing, Mr.Bhatt, the learned Senior Counsel appearing for therespondent No.2 – CBDT, has produced an affidavit filed onbehalf of the CBDT, duly affirmed by Shri Jagannath BidyadharMohapatra, the Chairman of the Central Board of Direct Taxes,inter-alia stating as under: I, Jagannath Bidyadhar Mohapatra, Chairman, Central Board ofDirect Taxes, Department of Revenue, Ministry of Finance,Government of India, aged 59 years, S/o Shri B.J.B. Mohapatra,for and on behalf of Union of India (Respondent No. 1) andCentral Board of Direct Taxes (Respondent No. 2) in the abovematter, hereby solemnly affirm as under: 1.It is submitted that the present affidavit is filed pursuant tothe oral directions of this Hon'ble Court given on18.01.2022.the oral directions of this Hon'ble Court given on18.01.2022. I, Jagannath Bidyadhar Mohapatra, Chairman, Central Board ofDirect Taxes, Department of Revenue, Ministry of Finance,Government of India, aged 59 years, S/o Shri B.J.B. Mohapatra,for and on behalf of Union of India (Respondent No. 1) andCentral Board of Direct Taxes (Respondent No. 2) in the abovematter, hereby solemnly affirm as under: 1.It is submitted that the present affidavit is filed pursuant tothe oral directions of this Hon'ble Court given on18.01.2022.the oral directions of this Hon'ble Court given on18.01.2022. 2.The Central Board of Direct Taxes, hereinafter referred to as‘the Board’, reiterates its position, which has been kindlytaken note of by this Hon'ble Court, that filing of Tax AuditReport (TAR) and/or Income Tax Return (ITR) either inphysical form or through specified e-mail id, is not inconformity with the existing structure for the followingreasons:‘the Board’, reiterates its position, which has been kindlytaken note of by this Hon'ble Court, that filing of Tax AuditReport (TAR) and/or Income Tax Return (ITR) either inphysical form or through specified e-mail id, is not inconformity with the existing structure for the followingreasons: i) It is submitted that filing of ITR and TAR has to be done inthe electronic format on e-filing portal. Over 6.01 crore ITRsfor AY 21-22 and nearly 13.7 lakh various types of TARshave already been filed electronically. The filing of ITR andassociated TAR is only the first step in the entire procedurefor processing and assessment. Without the availability ofdata in the prescribed digital format, the ITR cannot beprocessed and refunds, if any, and intimations cannot beissued. (ii) There is no existing mechanism to digitize paper ITRsand such data cannot be used for processing or issue ofrefunds. (iii) Further, the e-filed TARs are used to crosscheck datawith ITRs during processing to identify mismatches and forrisk assessment. (iv) All this is done in an automated manner without anysignificant human intervention. Therefore, even ITRs filedthrough e-mail would not be compatible with thisautomated process. Any change in this already stable procedure would beextremely disruptive to the Department as well as causesevere inconvenience to the taxpayer eventually. 3.It is humbly submitted that Tax Audit Reports in variousforms have been successfully filed by the taxpayers,despite some technical glitches appearing in some caseswhich are resolved on regular basis. In this context thefollowing data, in the Table below, is submitted for kindperusal of this Hon'ble Court, which shows that 13,67,338TARs have been filed successfully till 18.01.2022.forms have been successfully filed by the taxpayers,despite some technical glitches appearing in some caseswhich are resolved on regular basis. In this context thefollowing data, in the Table below, is submitted for kindperusal of this Hon'ble Court, which shows that 13,67,338TARs have been filed successfully till 18.01.2022. TABLE The daily statistics as given in the Table above shows thatthere has been an increase in filing of TAR (Form 3CA-3CDand Form 3CB-3CD) for Financial Year 2021-22 in the fewdays prior to the due date of 15[th] January, 2022, beforeCBDT issued a circular (No.1/2022) on 11[th] January, 2022extending the due date to 15[th] Feb 2022. Filing of TAR ispicking up again and nearly 2 Lakh TARs have been filedfrom 12[th] to 18[th] Jan 2022. This indicates that filing of TARhas been progressing smoothly. With the extension of thedue date, it is expected that the tax professionals will beable to complete their filings smoothly. 3.1 It may also be submitted that filing of ITR remained smoothas is evident from the data given in the Table below:as is evident from the data given in the Table below: TABLE The daily statistics as given in the Table above shows thatthere has been an increase in filing of TAR (Form 3CA-3CDand Form 3CB-3CD) for Financial Year 2021-22 in the fewdays prior to the due date of 15[th] January, 2022, beforeCBDT issued a circular (No.1/2022) on 11[th] January, 2022extending the due date to 15[th] Feb 2022. Filing of TAR ispicking up again and nearly 2 Lakh TARs have been filedfrom 12[th] to 18[th] Jan 2022. This indicates that filing of TARhas been progressing smoothly. With the extension of thedue date, it is expected that the tax professionals will beable to complete their filings smoothly. 3.1 It may also be submitted that filing of ITR remained smoothas is evident from the data given in the Table below:as is evident from the data given in the Table below: 4.With regard to redressal of grievances in respect of filing ofstatutory forms, it is submitted that presently taxpayersapproach integrated helpdesk via calls, online grievancesubmissionandemails(designatedemailidefilingwebmanager@incometax. )to seek resolution totheir grievances. The grievance setup is supervised by ateam of Departmental officers headed by a Joint Director ofIncome Tax. If the issues reported are not resolved at thefirst level, then they are examined by backend teamconsisting of functional and technical personnel in each ofthe above grievance channels. Based on the resolutionprovided by the backend team including changes, if anyrequired, in the software etc, the taxpayer is contacted bymaking outbound calls and based on the confirmation of theresolution, all such tickets are closed by sending the finalemail communication.statutory forms, it is submitted that presently taxpayersapproach integrated helpdesk via calls, online grievancesubmissionandemails(designatedemailidefilingwebmanager@incometax. )to seek resolution totheir grievances. The grievance setup is supervised by ateam of Departmental officers headed by a Joint Director ofIncome Tax. If the issues reported are not resolved at thefirst level, then they are examined by backend teamconsisting of functional and technical personnel in each ofthe above grievance channels. Based on the resolutionprovided by the backend team including changes, if anyrequired, in the software etc, the taxpayer is contacted bymaking outbound calls and based on the confirmation of theresolution, all such tickets are closed by sending the finalemail communication. 5.It is further submitted that the portal software is complexinvolving many functionalities and interlinkages. Problemsfaced by taxpayers may be of different nature andcomplexity. Some problems may be addressed and resolvedimmediately where guidance has to be given to taxpayers.If the issue reported is new and has to be analysed orrequires multiple changes or involves process change orissues that need clarification at higher departmental levelsthen the resolution may take additional time. After anysoftware change is made, the change has to be tested toensure that existing functionality already in use by lakhs oftaxpayers are not disturbed. Therefore, the resolution timeis significantly dependent on the nature of the technical ortaxpayer specific issue reported.involving many functionalities and interlinkages. Problemsfaced by taxpayers may be of different nature andcomplexity. Some problems may be addressed and resolvedimmediately where guidance has to be given to taxpayers.If the issue reported is new and has to be analysed orrequires multiple changes or involves process change orissues that need clarification at higher departmental levelsthen the resolution may take additional time. After anysoftware change is made, the change has to be tested toensure that existing functionality already in use by lakhs oftaxpayers are not disturbed. Therefore, the resolution timeis significantly dependent on the nature of the technical ortaxpayer specific issue reported. 4.1 The portal has many linkages and all have to be up andworking from the departmental side as well as the taxpayerside. The band width on taxpayer side, the quality ofconnectivity and functioning of the lease lines also playsignificant role in the entire process of uploading Tax AuditReport and Income Tax Return. In case of any difficulty, thehelplines are there to provide assistance to the taxpayers.Moreover, in case of any assistance in the form of technicalworking from the departmental side as well as the taxpayerside. The band width on taxpayer side, the quality ofconnectivity and functioning of the lease lines also playsignificant role in the entire process of uploading Tax AuditReport and Income Tax Return. In case of any difficulty, thehelplines are there to provide assistance to the taxpayers.Moreover, in case of any assistance in the form of technical infrastructure sought by the tax payer, the Aayakar SevaKendras (ASK Centers) are at the service of the taxpayers. 6.The Hon'ble Court is assured that a team of Departmentalofficers will also supervise a special team of helpdesk,technical, functional personnel from the Managed ServiceProvider (MSP) for the project, to ensure that any grievancereported or technical issue identified is addressed at theearliest and to ensure that the taxpayer is facilitated in thefiling process.officers will also supervise a special team of helpdesk,technical, functional personnel from the Managed ServiceProvider (MSP) for the project, to ensure that any grievancereported or technical issue identified is addressed at theearliest and to ensure that the taxpayer is facilitated in thefiling process. 7.Further, this Hon'ble Court is assured that the followingadditional mechanism including a dedicated email for thispurpose (given below) will be made available for issuesrelated to filing of Tax Audit Reports to facilitate its timelyfiling.additional mechanism including a dedicated email for thispurpose (given below) will be made available for issuesrelated to filing of Tax Audit Reports to facilitate its timelyfiling. 7.Further, this Hon'ble Court is assured that the followingadditional mechanism including a dedicated email for thispurpose (given below) will be made available for issuesrelated to filing of Tax Audit Reports to facilitate its timelyfiling.additional mechanism including a dedicated email for thispurpose (given below) will be made available for issuesrelated to filing of Tax Audit Reports to facilitate its timelyfiling. SourceDetailsActionEmail email id is dedicated to assist nthe filing of Tax Audit Report. A team of 6 members (which can be increased) will be dedicated to examine and resolve the emails received at this email id.Helpdesk Phone (1) 1800 103 0025Helpdesk team has been instructed number(2) 1800 419 0025to forward the issues of the Tax (3) +91-80-46122000Audit report to the dedicated team (4) +91-80-61464700for this purpose for close monitoring to ensure timely assistance. The grievances received on the dedicated e-mail ID will beattended to within the timeline suggested by this Hon'bleCourt. 8. In addition to the administrative mechanism detailed above,it is submitted that there is legal framework in place in theform of section 119(2)(b) and section 273B of the Income-tax Act which will obviate any genuine hardship faced byany taxpayer.it is submitted that there is legal framework in place in theform of section 119(2)(b) and section 273B of the Income-tax Act which will obviate any genuine hardship faced byany taxpayer. DEPONENT VERIFICATION Verified at New Delhi on this 20[th] day of January, 2022 that thecontents of the above affidavit are true and correct to the bestof my knowledge and official records and nothing material hasbeen concealed therefrom. DEPONENT” 8.In today’s hearing through Video Conference, Mr. Y.K.Singh, DGIT (Systems) and Mr. Krishnamurthy, AdditionalDirector General of Income Tax, also joined in the discussion.We had the advantage of hearing Mr. Singh as well as Mr.Krishnamurthy. Mr. Singh and Mr. Krishnamurthy have assured this Court that all necessary steps shall be taken to ensure thatthe assesses are able to upload their Income Tax Returns/TaxAudit Reports online smoothly and without any difficulties.They have also assured that in the event of any technicalglitch, the same shall be attended at the earliest and takencare of as explained in the affidavit filed today. 9.Having regard to the stance of the CBDT as it emergesfrom the affidavit, we are convinced that no furtheradjudication is required in the present litigation. We appreciatethe efforts put in by the CBDT to ensure that the assesses donot have to face any hardships or difficulties on account of thetechnical glitches in the portal. 10.We take notice of one pertinent feature emerging fromthe affidavit and i.e. the E-mail ID, which has been created toassist the filing of Tax Audit Report. A team of six members orif need be more are to examine and resolve the E-mailsreceived at this E-mail ID. Our suggestion to Mr. Singh as wellas to Mr. Krishnamurthy is that one such E-mail ID may also becreated for the Income Tax Returns. Our suggestion has beengraciously accepted by Mr. Singh and Mr. Krishnamurthy. Theyhave assured that the needful shall be done in this regard also. 11.In the overall view of the matter, we are convinced thatwith the cooperation of one and all, we have been able toresolve the controversy as regards the technical glitches in theIncome Tax Portal. 12.At this stage, Mr. Hemani, the learned Senior Counselsubmitted that by and large all issues can be said to have beentaken care of with view of what has been stated in the affidavit except the issue as regards the levy of interest under Section234A of the Income Tax Act. 11.In the overall view of the matter, we are convinced thatwith the cooperation of one and all, we have been able toresolve the controversy as regards the technical glitches in theIncome Tax Portal. 12.At this stage, Mr. Hemani, the learned Senior Counselsubmitted that by and large all issues can be said to have beentaken care of with view of what has been stated in the affidavit except the issue as regards the levy of interest under Section234A of the Income Tax Act. 13.We do not intend to look into the above controversy inthe present litigation as we are informed that one writapplication as regards Section 234A is already pending beforethis High Court. This issue shall be looked into as and when thepending writ application is taken up for hearing by this Court. 14.With the aforesaid, we close both the writ applicationsand dispose of the same accordingly. The affidavit, which hasbeen filed today on behalf of the respondents Nos.1 and 2 shallbe taken on record. 15.We are once again thankful to Mr. Singh as well as Mr.Krishanmurthy for joining this Video Conference and assuringus to do their best so as to ease the problems and difficultiesof the assesses. We are also thankful to Mr. Bhatt and Mr.Devang Vyas for seriously taking up all the issues with theCBDT. 16.The connected writ application also stands disposed of inthe aforesaid terms. (J. B. PARDIWALA, J) (NISHA M. THAKORE,J) NEHA