For passing an interim order towards the extension of the date of ITR Filing for the fiscal year 2022- 23 (assessment year 2023-2024) to December 31, 2023, the taxpayers/owners of small businesses would have approached the Manipur High Court because of the tough Manipur conditions.
The HC issued a notice to the Union of India, on August 10, through its Secretary (Revenue), Central Board of Direct Taxes (CBDT), via 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 4 weeks.
The interim order requested by the petitioners in the current PIL would allow Manipur taxpayers to file their income tax returns for the FY 2022–2023 while exempting them from the penalties charged under Section 234F of the Income Tax Act due to the state of Manipur’s current law and order situation.
On August 10, DSGI asked the relevant authorities for a week to provide the required instructions about the request for the passage of the interim order.
On August 17, DSGI once more requested an additional week of time to get instructions from the relevant authorities.
The HC instructed the DSGI to gather the required data and present a report to the HC on August 24.
It is compulsory to file Income tax returns electronically (e-filling), mentioned in the petitions.
However, the regular day-to-day life of a taxpayer and small company owner has been disturbed as a result of the current law and order crisis. Additionally, Manipur’s income-tax assessors and taxpayers were unable to complete the compliances necessary to submit their ITR before the deadline of July 31, 2023, because of the internet restriction. The taxpayers are now subject to significant fines and late fees for no fault of their own. The ITR filing date has occasionally been extended by the authorities, sometimes especially for a state or region.
A date extension for compliance with the Income Tax Act, GST, Companies Act, and all other connected acts is required in light of the current circumstances in the state of Manipur in order to prevent taxpayers in the state of Manipur from paying excessive penalties and late fees.
Due to the current state of law and order, the petitioners asked the HC for an appropriate directive to extend the deadline for compliance with the Income Tax Act, GST, Companies Act, and all other related acts. By doing so, they hoped to prevent the Manipur state’s income-tax assesses from having to pay heavy fines and late fees.
