Filing physical tax audit reports impractical: CBDT tells High Court

Filing physical tax audit reports impractical: CBDT tells High Court

Chartered accountants have highlighted the difficulties faced due to the technical glitches in the IT e-filing portal

The Central Board of Direct Taxes (CBDT) has told the Gujarat High Court that physical filing of the tax audit reports and Income Tax (IT) Returns is not feasible.

A petition filed by the Southern Gujarat Income Tax Bar Association sought to submit physical copies of the tax returns and audit reports. The petition also requested to extend the submission date for the same. It pursued not to levy interest or penalty on the belated filings owing to glitches in the IT e-portal.

Recently, the tax department had extended the submission dates for filing of IT returns and audit reports for the assessment year 2021-22.

Various groups of chartered accountants filed representations highlighting the difficulties faced in e-filing the tax reports due to the technical glitches in the portal.

On behalf of CBDT, senior advocate Manish Bhatt informed that, unlike the Goods and Services Tax (GST) returns, physical filing of tax audit reports and income tax returns would not be possible, as the e-portal captures only digital figures.

Moreover, the portal had helpline numbers along with a multi-layered grievance cell. If any taxpayer was facing technical issues with the portal, he could contact the helpline, he said.

However, a bench headed by Justice J B Pardiwala stated, "The helpline is not helping. That is what the petitioners are saying."

"As a writ court, we are finding it difficult to tell the ministry to accept returns in a manual (physical) form. It is a policy decision," the court maintained.