Tax paying small business owners have approached the Manipur High Court for passing an interim order for extension of date of Income Tax Return Filing for the financial year 2022- 23 (assessment year 2023-2024) to December 31, 2023, due to prevailing situation in Manipur.
On August 10, the HC issued a notice to Union of India, through its Secretary (Revenue), Central Board of Direct Taxes (CBDT), through its chairman, principal chief commissioner of Income Tax, (North East Region), joint/additional commissioner of Income Tax, (Imphal Range), state of Manipur represented by the chief secretary, returnable within four weeks.
The interim order sought for by the petitioners in the present PIL is for allowing the taxpayers of the state of Manipur to file their Income Tax Returns for the Financial Year 2022-23 by exempting the penalties imposed under Section 234F of the Income Tax Act, due to the prevailing law and order situation in the state of Manipur.
On August 10, DSGI sought for one week’s time to get necessary instructions from the concerned authority with regard to the prayer for passing the interim order.
Again, on August 17, DSGI has sought an extra week’s time for getting instruction from the concerned authorities.
The HC directed the DSGI to obtain necessary instructions and place a report before the HC on August 24.
In the petitions, it is stated that it is mandatory to file Income Tax Return (ITR) electronically (e-filling).
However, due to the prevailing law and order situation, the normal day-to-day life of a taxpayer and small business owner has been disrupted. Further, due to the internet ban, income-tax assesses/taxpayers in the state of Manipur have not been able to complete the compliances required to file their ITR before the due date which was on 31.07.2023. As a result, the taxpayers are now liable to face huge penalties and late fees for no mistake of theirs. There have been instances wherein the authorities had extended the deadline for filing of ITR and in some cases specifically for a region/state.
In view of the prevailing situation in the state of Manipur, there is a need for extension of date for compliances under the Income tax Act, GST, Companies Act and all other related acts so as to avoid incurring huge penalty and late fees to the income-tax assesses/taxpayers in the state of Manipur.
Therefore, the petitioners prayed an appropriate direction from the HC for extension of date for compliances under the Income tax Act, GST, Companies Act and all other related acts so as to avoid incurring huge penalty and late fees to the income-tax assesses/taxpayers in the state of Manipur in view of the prevailing law and order situation.
