Thing to Do Before /After Filing Return for Quick / Faster Income Tax Refund Read more: Thing to Do Before /After Filing Return for Quick / Faster Income Tax Refund

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Here are some of the things to do for while handling the entire income tax refund process so that you can receive the same quickly:-

File the income tax return in time – The entire tax refund process starts with them taking some specific action. For any tax payer, doing nothing will not yield any result in any benefit on the tax front. Thus if there is some outcome desired, then there will have to be efforts to get that particular outcome. When it comes to the question of getting an income tax refund, the first thing that has to be done is to file an income tax return which mentions all the correct figures about the income, deductions and tax paid. This will result in a demand for the refund based on documentary evidence.   Filing the income tax return is just a part of the process because doing this by the due date will ensure that this helps the tax payer in getting the refund. There are different due dates for people falling in different categories.  It is not that missing the initial due date will kill the refund, as you could still get your refund if you file the returns a bit late. But, there are some conditions under which this will happen. Otherwise you can find the entire process delayed and in several cases the workings will change and hence to avoid such a situation it is better that you are  able to file it in  time and then move ahead on the  process,

Give complete information – It is also important to avoid mistakes and disputes in the tax calculation process by giving all the required information which is also the right information. This will ensure that all the details are available with the tax authorities for them to be able to make the required workings and then quickly issue a refund. Otherwise, there could be a lot of time wasted in the process of giving the information as the tax officer will call for the information and this will then be sent by the tax payer which will be evaluated and then the effect given to arrive at the final situation.   Giving complete information will cover all the details about the income that has been earned plus the details of the tax saving investments or deductions, tax paid details as well as the other information that is required in the tax return form. Filling in the appropriate form that is required will also be helpful for the individual and it will ensure that the process has been completed properly.

Give TDS and other tax paid information and Match them  26AS statement- There are a lot of times when the key information related to the tax actually paid by or on behalf of the tax payer is not given. A refund case will arise when there is some tax that is collected by the government when this should not have been done or that the tax collected is in excess of what should actually  be collected. In such a situation giving the complete information about the tax that has been deducted and then taken with the government is vital.   Further if there is some additional tax that has been paid on behalf of the tax payer then this should also be mentioned so that these can be traced and then the individual will get the refund quickly. Now there is also the facility of checking the tax paid details through the website of the tax department (also called Form 26AS) and the tax payer can also check that the figure of tax that they are showing as being paid matched with the amount deposited with the government. If this is done then it will help the refund process speed up.

Paying attention to details- While preparing and filing the income tax return it is important that the individual looks at some information carefully to ensure that this is reflected appropriately. The bank account details mentioned in the return need to be correct so that the amount of the refund can come directly here thus saving time for the tax payer. Further giving the right working and calculations in the income and tax figures will help in ensuring that the process is cleared quickly.  All this will go on to ensuring that there is an early refund that awaits the tax payer leading to less wastage in time as well as effort.

By making application under RTI Act – If your refunds, rectifications, other matters like not getting orders to give effect to the Appellate orders, etc. are pending since long, reminders not bringing any results, you may make application under the RTI Act to the Commissioner of Income-tax (CIT), under whose jurisdiction you are assessed to tax. The CIT has to dispose  your application within thirty days of the receipt of the request (S. 7 of the RTI Act). In other words, normally you will get your work done within these 30 days; i.e., Assessing Officer will send the required orders like intimations, orders u/s. 154, etc. with refunds, etc. and the CIT then will reply to your application within 30 days, stating that your application has been attended and you must have received the refund orders, etc. At times, there may be delay in getting some refunds as in my case, but you will get them ultimately.

Read more on the Topic – Get Income Tax Refund by making application under RTI Act

Application to Income Tax Ombudsman

As a first measure you can write to Income Tax Ombudsman stating the facts about non-receipt of your income tax refund. As per rough estimates, 95% of the complaints to the Income Tax Ombudsman relate to grievances of the tax payer for non-receipt of income tax refund or short receipt of income tax refund. The role of Income Tax Ombudsman has turned out to be very effective in case(s) of chronic delays in issuance of income tax refunds due to loss of relevant documents in the Income tax department.

You can follow the process below to claim your income tax refund:

1. As a first step, before you write to the income tax ombudsman, write a letter to your assessing office for non-receipt of the refund with a copy to his superior i.e. Deputy Commissioner or Additional Commissioner of Income tax with all the details along with the copies of the relevant documents like return of income, form no. 16 and 16A.
2. In case you do not get your income tax refund within a period of 30 days, you can file a complaint to the Income Tax Ombudsman in simple letter format giving details of your name and address. In your complaint, provide the details of income tax officer against whom you are filing your complaint. Currently the offices of income tax ombudsman are situated in New Delhi, Mumbai, Chennai, Kolkata, Bangalore, Hyderabad, Ahmedabad, Pune, Lucknow, Bhopal and Kochi cities. The details of income tax ombudsman for each area are displayed at all the income tax department in their offices. You can these details from your local income tax office.
3. The complaint has to be signed by you and in case your case is represented by an authorized representative, he should also sign the complaint.
4. Please attach the copies of the letters filed with your income tax office and his superior with your application to the income tax ombudsman.

Resolving of Complaints – The Ombudsman acts as an intermediary between the Income Tax Department and the tax payer. It tries to resolve the issue by hastening the process. The Ombudsman has the power to pay penal interest for the duration of the delay. For cases where no resolution is passed in a month’s time of receiving the written complaint, Ombudsman could pass a decision called award. If deemed probable, a monetary compensation could be paid by the Ombudsman.    The income tax ombudsman will try to get the matter settled through conciliation and mediation between the Income TaxDepartment and the person who has filed the grievance with him. by passing an ‘award’ in accordance with the Guidelines. In most of the case of refund due, the refund due is issued once the complaint received by you is forwarded to the concerned assessing officer by the office of Income Tax Ombudsman.

The Decision of the Ombudsman -The Ombudsman has been empowered by the government to help tax payers and also better the whole tax process. All decisions taken would be in line with the prevailing tax laws and only if the submitted documents are deemed fit. The decision of the Ombudsman thus has to be abided by the Income Tax Department and the tax payer. Once the Ombudsman decision is passed, tax payers need to make known their acceptance of the ombudsman decision of the final settlement within 15 days of receiving the letter stating the ombudsman’s decision, or as per the time frame mentioned in the letter. If one fails to do so, any award proposed shall lapse and be of no effect.

Companies Bill 2011 provides for refund of remuneration by company officials in case the accounts are re-stated Read more: Companies Bill 2011 provides for refund of remuneration by company officials in case the accounts are re-stated

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In order to deter chief executives and other senior functionaries from indulging in Satyam type accounting fraud, the Companies Bill 2011 stipulates that such officials will have to refund the remuneration received in case the accounts are re-stated.

According to the Companies Bill, which is awaiting approval of Parliament, “where a company is required to re-state its financial statement due to fraud or non-compliance …the company shall recover from any past or present managing director or whole-time director or manager …the remuneration received (includingstock option)…”.

The provision, according to Diljeet Titus, Senior Partner of law firm Titus & Co “is meant to deter senior functionaries of companies from indulging in Satyam type accounting fraud”.

He added, “However, the provisions needed to be more deterrent to refrain them from such activities which have wide implications not only for for shareholders and stakeholders, but also for the overall image of corporate sector.”

Following admission of Rs 14,000-crore accounting fraud by Founder Chairman B Ramalingam Raju, the account books of Satyam Computer Services had to re-stated to ascertain the actual tax and other liabilities.

Besides causing loss and agony to the shareholders and employees, the Satyam accounting fraud also impacted the image of Indian Inc within and outside the country.

Commenting on the provisions, Ashivn Parekh, Partner of Ernst and Young, said, “The move seeks to make whole time directors directly responsible… while immediate stimulus seems to be Satyam, the fact that whole time director should take personal responsibility is a welcome move.”

“The trouble is with independent directors. There should be proper set of regulations for them also although we are getting difficulty in finding independent directors,” he added.

The Companies Bill also provides for “disgorgement of assets, property or cash” from directors, key managerial personnel and other officers obtained by fraud.

These provisions, according to another taxation expert Amit Jain, Partner, BMR Associates, would give more powers to the government to tackle accounting frauds.

“The idea is to make more robust legislation to avoid Satyam like situation. This will give more power to the government to take active action while dealing with such problems. The government also hopes to control misrepresentation of statement of frauds,” he said.

The crisis-ridden IT company Satyam Computer Services was later taken over by Tech Mahindra and renamed as Mahindra Satyam.

Whether trade discount amounts received from newspapers for sale of space to be treated as commission and taxable under the Business Auxiliary Service or not

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M/s VARADHI ADVERTISERS PVT LTD

Vs

CCE, HYDERABAD

The issue involved in the matter is whether the trade discount amounts received by the appellant to be treated as commission and taxable under the Business Auxiliary Service or not. The liability in that regard is essentially to be decided on the basis of the provisions of law comprised under the service tax statute. Besides the provisions of the said rules which are brought to our notice rather than disclosing principal to principal relationship between the publisher of the newspaper and the appellants, overall reading of the said rules disclose certain disciplinary control by the Newspaper Society over the appellants as far as it relates to advertising services are concerned which would, prima-facie, disclose the trade discount to be in the nature of commission to the agents. Prima facie, therefore, we do not find any infirmity in the concurrent findings in that regard arrived at by the authorities below. Hence, we do not find any case for stay of the impugned order. However, taking into consideration of the facts and circumstances of the case, we direct the appellants to deposit a sum of Rs.5 lakhs (Rupees five lakhs only) within a period of eight weeks while waiving the balance amount demanded under the impugned order. Compliance to be reported on 29/11/2010.

ICAI recommends that companies be allowed to account for losses arising from foreign exchange derivative trade over several years

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Apex accounting regulator ICAI has recommended that companies be allowed to account for losses arising from foreign exchange derivative trade over several years. The measure, according to sources, would prevent the companies from showing huge notional losses, which they have suffered on account of exposure in forex derivative market.

“Implementation of AS-11 is recommended to be extended until the loan repayment is complete,” Institute of Chartered Accountants of India (ICAI) President G Ramaswamy said, adding that the industry has been demanding for the relaxation.

The ICAI today discussed the issue with National Advisory Committee on Accounting Standard (NACAS), a government- appointed body, to formulate accounting norms.

Earlier in 2009, the ICAI had deferred the implementation of Accounting Standards 11, which deals with accounting for financial assets on mark-to-market basis, till March, 2011.

“The contracts entered into after April 1, 2011, would also be provided for several areas. The move would benefit a large number of companies,” Ramaswamy said.

Companies will have an option to show the forex loss or gain as per AS 11 or Schedule VI of the Companies Act.

In 2011, India was to converge with the international reporting norms, IFRS, as per which the companies will have to compulsorily report mark-to-market losses and gains.

However, the implementation of the decision has been deferred till April 2013.

 

Government withdaws Companies Bill, 2011

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The government withdrew the Companies Bill and Pension Fund Regulatory and Development Authority Bill on Wednesday after the BJP opposed the first and coalition ally Trinamool Congress withdrew its support for the other.
The BJP leaders also argued that since the government had consulted other stakeholders after the standing committee gave its report on the Companies Bill in August 2010, it should be sent back to the committee again. Despite the seeming setback, the Companies Bill is unlikely to face major obstacles or delays, with the standing committee likely to take it up on January 6. Officials expect it to be presented in Parliament in the budget session.


 

Frequently Asked Questions Companies (Cost Accounting Records) Rules, 2011 and Companies (Cost Audit Report) Rules 2011- FAQ – 5

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5.1 Whether a cost auditor can be appointed as Internal Auditor of the company. Whether there is any restriction on the cost auditor to accept assignments from a company where he is the cost auditor.
Refer to MCA General Circular No. 68/2011 dated 30th November 2011.
A cost auditor cannot render any services to the company whether acting individually, or through the same firm or through other group firms where he or any partner has any common interest, relating to:
(i) design and implementation of cost accounting system; or
(ii) the maintenance of cost accounting records, or (iii) act as internal auditor,
However, a cost auditor can certify the compliance report or provide any other services as may be assigned by the company, excluding the services mentioned above.
5.2 How total number of companies for which a cost auditor can accept appointment is to be computed keeping in mind restrictions imposed under Section 224(1B) of the Companies Act 1956.
Refer to MCA Master Circular No. 2/2011 dated 11th November 2011.
The specified number of companies for the purpose of section 233B (2) read with section 224 (1B) of the Companies Act, 1956 for a given financial year would be the total of:
(a) Companies wherein he has been appointed as the cost auditor,
(b) Companies wherein he is proposed to be appointed for which he has given his consent.
(c) Companies in respect of which cost audit reports have not been submitted and have become overdue.
A cost auditor would be deemed to have concluded his appointment as cost auditor and eligible to accept appointment of another company within the limits of Section 224 (1B) as soon as he renders his report to the Central Government in accordance with the Cost Audit Report Rules, as applicable, with a copy to the Company. His obligation to answer queries from the Ministry of Corporate Affairs arising out of review of cost audit reports would not debar him from accepting another appointment as cost auditor of a company provided the specified number of companies contemplated in section 224 (1B) is not exceeded.
5.3 What is the period for which a cost auditor holds office as cost auditor of a company?Refer to MCA Master Circular No. 2/2011 dated 11th November 2011.
A cost auditor shall be deemed to be holding office as cost auditor from the time he accepts the appointment and files Form 23D with the Central Government and shall be deemed to have concluded his appointment for the relevant financial year as soon as he renders a report to the Central Government in accordance with the Cost Audit Report Rules, as applicable, with a copy to the Company.
5.4 How and in what manner a cost auditor is required to sign a cost audit report?Refer to MCA Master Circular No. 2/2011 dated 11th November 2011.
In case where a firm of cost accountants is appointed as cost auditors, the Cost Audit Report shall be signed by any one of the partners of the firm responsible for the conduct of cost audit in his own hand alongwith his membership number, for and on behalf of the firm.
In case where an individual is appointed as cost auditor, the Cost Audit Report shall be signed by the individual cost auditor in his own hand alongwith his membership number.
5.5 What is the role of Audit Committee, where applicable, in dealing with the Cost Audit Report. Can the Annexure to a Cost Audit Report be approved by the Audit Committee and/or the Board of Directors by circular resolution.
Refer to MCA Master Circular No. 2/2011 dated 11th November 2011.
Sub-section (6) of section 292A of the Companies Act, 1956 states that the Audit Committee should have discussions with the auditors periodically about internal control systems, the scope of audit including the observations of the auditors and review the half yearly and annual financial statements before submission to the Board and also ensure compliance on internal control systems. Departmental Circular No. 6/2001 dated 20.08.2001 has already clarified that the term “auditors” includes cost auditor and hence “scope of audit including observations of the auditors” occurring in the above sub-section includes the scope of cost audit including observations of the cost auditors as well. The presence of the cost auditor in such committees will ensure overall cost management, efficiency in resource utilization, business vertical-wise performance evaluation, proper pricing of inter-unit/inter-company transfers and valuation of inventories. Hence, the company must place the cost audit report before the Audit Committee first, which in its duty to ensure compliance of internal control system shall also discuss the suggestions made in the cost audit report for implementation, wherever cost audit has been directed under section 233B of the Companies Act, 1956.

The Audit Committee, after due consideration of the Cost Audit Report is required to submit the same for approval of the Board. Since the Board of Directors is required to approve the Annexure to the Cost Audit Report and authorize one of the Directors and the Company Secretary (two Directors in the absence of a Company Secretary) to sign the same, the Board should also consider the Cost Audit Report in a duly convened meeting and it would not be advisable to approve the same by circular resolution.
5.6 As per MCA General Circular No. 67/2011 dated 30th November 2011, Companies engaged in the production, processing, manufacturing or mining activities are not covered under Companies (Cost Accounting Records) Rules 2011 till such time they commences their commercial operations. Does it mean Petroleum Blocks where there is no commercial production of oil or gas are excluded?
The Cost Accounting Records (Petroleum Industry) Rules 2011 is applicable for companies engaged in Petroleum activity. Survey, Exploration, Exploratory/ Developmental Drilling activities are an integral operation of the Petroleum Industry which may or may not lead to establishment of a producing property resulting in commercial production of oil or gas from the well/block. Hence, companies engaged in Survey, Exploration etc and blocks where such activities are being carried out are covered under Cost Accounting Records (Petroleum Industry) Rules 2011.
5.7 What is the applicability of Cost Audit Order no. 52/26/CAB-2010 dated 2^nd May 2011 on cost audit of Captive Power Generating Plants.
It has been clarified, vide MCA General Circular No. 67/2011 dated 30th November 2011, that Generation of electricity for captive consumption is not covered under the above order. For this purpose, the term “Captive Generating Plant” has been defined to have the same meaning as assigned in Rule 3 of the Electricity Rules, 2005 which is reproduced below. It may, however, be noted that cost records as required under Cost Accounting Records (Electricity Industry) Rules 2011 are required to be maintained and Compliance Report would be applicable for the Captive Generating Plant, if the final products of the company are not covered under cost audit
Requirements of Captive Generating Plant.-
(1) No power plant shall qualify as a ‘captive generating plant’ under section 9 read with clause (8) of section 2 of the Act unless-

(a) in case of a power plant -
(i) not less than twenty six percent of the ownership is held by the captive user(s), and
(ii) not less than fifty one percent of the aggregate electricity generated in such plant, determined on an annual basis, is consumed for the captive use:
Provided that in case of power plant set up by registered cooperative society, the conditions mentioned under paragraphs at (i) and (ii) above shall be satisfied collectively by the members of the co-operative society;
Provided further that in case of association of persons, the captive user(s) shall hold not less than twenty six percent of the ownership of the plant in aggregate and such captive user(s) shall consume not less than fifty one percent of the electricity generated, determined on an annual basis, in proportion to their shares in ownership of the power plant within a variation not exceeding ten percent;
(b) in case of a generating station owned by a company formed as special purpose vehicle for such generating station, a unit or units of such generating station identified for captive use and not the entire generating station satisfy (s) the conditions contained in paragraphs (i) and (ii) of sub-clause (a) above including -
Explanation :-
(1) The electricity required to be consumed by captive users shall be determined with reference to such generating unit or units in aggregate identified for captive use and not with reference to generating station as a whole; and
(2) the equity shares to be held by the captive user(s) in the generating station shall not be less than twenty six per cent of the proportionate of the equity of the company related to the generating unit or units identified as the captive generating plant.
5.8 Companies covered under any of the 6 Industry/Product Specific Cost Accounting Records Rules 2011 are also subject to cost audit. Will they be required to file Compliance Report also under these Rules?
(a) (a) If one or more product(s)/activity(s) of a company is covered under cost audit and there are other products that are not covered under Cost Audit as per company-wise cost audit orders issued in the past or industry specific cost audit orders dated 2nd May, 2011 and 30^th June, 2011, the Company will be required to file a Compliance Report (Company as a whole) covering products under cost audit and products not under cost audit.

(b) If one or more product(s)/activity(s) of a company is covered under Cost Audit and the other product(s)/activity(s) belong to the exempted category, then the company will not be required to file a Compliance Report.
5.9 Are there any sectors exempted under Companies (Cost Accounting Records) Rules 2011?
Please refer MCA General Circular No. 67/2011 dated 30th November 2011, which states that the Companies (Cost Accounting Records) Rules, 2011 are not applicable to wholesale & retail trading, banking, financial, leasing, investment, insurance, education, healthcare, tourism, travel, hospitality, recreation, transport services, business/ professional consultancy, IT & IT enabled services, research & development, postal/courier services, etc. unless any of these have been specifically covered under any other Cost Accounting Records Rules.
5.10 The manufacturing process of a company generates Steel Scrap during production of its main products which may or may not be covered under cost audit. Such scrap is cleared under Chapter 72 of the Central Excise Tariff and sold in the market. Will the company be covered under cost audit for generation of scrap?
The company is engaged in manufacture of products and coverage of its main products under cost audit would depend on whether or not such products are covered under company specific cost audit orders issued in the past or industry specific cost audit orders dated 2nd May 2011 or 30th June 2011.
The generation of steel scrap is not a production or processing or manufacturing but is incidental to manufacture of its main products. Even though steel scrap, when sold, is liable for payment of excise duty under Chapter 72, still, generation of scrap will not be covered under cost audit.
5.11 A Cost Accountant is in full time employment in a company. He is also holding part time certificate of practice. Whether he can certify the Compliance Report of group companies and/or any other company.
A Cost Accountant and a member of the Institute can certify the Compliance Report of the company where he is a permanent employee.
In his capacity as a part-time COP holder, he is neither authorized to certify the Compliance Report of other group companies nor any other company.
5.12 Whether Laminates made from Kraft paper covered under Chapter 48 of Central Excise Tariff Act is covered under Cost Audit?
Since Laminates made from Kraft Paper are paper based products covered under Chapter 48 of Central Excise Tariff Act, the same is covered under Cost Audit as per cost audit order dated 30th June 2011 read with MCA General Circular No. 67/2011 dated 30th November 2011.
5.13 “Paints and Varnishes” under Chapter 32 of Central Excise Tariff are covered under Cost Audit vide order no. F.No.52/26/CAB-2010 dated 30th June, 2011. Paints, Coatings and Printing Ink etc. sold under various trade names are produced by using Varnish as primary raw material to which different Pigments are added in different qualities. These products also belong to Chapter 32 of Central Excise Tariff. Whether such products would be considered as “Allied Products” of Varnish and be covered under cost audit?
As per cost audit order dated 30th June, 2011, Paints & Varnish along with their “Intermediate” and “Articles and Allied Products” thereof are covered under cost audit. In the MCA General Circular No. 67/2011 dated 30th November 2011, the terms “Intermediate” and “Articles and Allied Products” have been defined. In view of this clarification, the items produced from Varnish are covered under cost audit irrespective of trade name under which it is sold, provided they meet the criteria laid down in the said circular.
5.14 Para 9 of the Companies (Cost Audit Report) Rules 2011 requires disclosure of “Cost of Production” and “Cost of Sales” at a company level. How the same would be available when all the products/ activities are not covered under cost audit?
The Companies (Cost Accounting Records) Rules 2011 [CARR] is now applicable to all companies engaged in production, processing, manufacturing & mining. Hence, product-wise/ activity-wise cost of production and cost of sales would be available from the Cost Accounting Records of all the products/ activities, irrespective of whether these are covered under cost audit or not.
It may further be noted that in such a situation, the company would also be required to file a compliance report and for this purpose, product-wise/ activity-wise cost of production and cost of sales would be determined to prepare the reconciliation statement as required in the compliance report.

5.15 Whether there is any sequence of filing compliance report and cost audit report for a company which is required to file both?
Compliance report and Cost Audit Report are mutually exclusive to each other and it does not make any difference as to which report is submitted first.
5.16 Whether separate Form 23C is required to be filed by a company having two or more different types of products covered under cost audit?
The company would be required to file individual Form 23C for each product under reference even if the same auditor is appointed for all the products.
5.17 A Company having turnover above Rs. 100 crore undertakes works contracts for pipe line execution for Drinking, Sewerage and Irrigation purpose. The required pipes for the projects, falling under Chapter 68 of CETA, are manufactured by the Company itself. A part of the production is also sold outside. Whether Cost Audit is applicable for Pipe manufacture.
Applicability of cost audit is based on turnover of the total company. Any activity of a company, irrespective of the turnover of the particular activity, would be covered under cost audit if that particular activity is one of the activities listed in the cost audit order Nos. 52/26/CAB-2010 dated 2nd May 2011 or 30th June 2011.
Whether the company under reference will attract cost audit for its pipe manufacturing activity will now depend on whether the captive consumption is made for a product which is under cost audit. In this case it is not so and the pipe manufacturing will attract cost audit under this test.
However, if the production of pipes is an ancillary activity as defined in MCA General Circular No. 67/2011 dated 30th November 2011, then pipe manufacturing would be outside purview of cost audit.

5.18 A company is engaged in construction of Roads, Bridges, Marine facilities etc. having sites in India and abroad. The company also has Joint venture projects in India and abroad. Whether Companies (Cost Accounting Records) Rules 2011 would be applicable to the company?

As per MCA General Circular No. 67/2011 dated 30th November 2011, if a company is engaged in construction business as a contractor or a sub-contractor, then the company will not be covered under Companies (Cost Accounting Records) Rules 2011.

However, construction undertaken by a company on its own, say development of a commercial complex, office blocks, residential flats, roads, bridges and other infra-structural facilities etc. with the ultimate object of either selling the same to customers or permitting their use on chargeable basis (say, Toll Charges for roads/bridges, renting of office complex) would be covered under Companies (Cost Accounting Records) Rules 2011. This would also include above activities under BOT/BOOT mode.

 

Merely becauseITR-V sent to CPC not received for no failure on part of assessee, the return cannot be treated as invalid

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In the Bombay High Court

Crawford Bayley & Company
v.
Union of India & Others

Writ Petition No. 2004 of 2011 ,

Date of Decision- 01.12.2011

A.Y. 2009-10

Though the Income Tax Department made a provision for electronic filing of returns, it appears that the ITR-V Form containing the due verification of the return of the assessee was required to be remitted only by ordinary post. The instructions which were furnished to assessees, a copy of which has been placed on record, specifically stipulate that the ITR-V form should not be sent either by registered post or by speed post or courier. The assessee has furnished adequate material before the Court in support of its contention that having filed the return electronically, it had also submitted the ITR-V form by ordinary post. The assessee has done so on 5 April 2010, 18 May 2010 and 18 November 201 0. In that view of the matter, we are of the view that the communication issued by the Income Tax Department on 21 March 2011 is thoroughly misconceived. The order of assessment for assessment year 2009-10, the Court is informed by the learned Counsel for the assessee, has still not been passed. Hence, the provisions of Section 139 (9) can be fulfilled by permitting the assessee to file a verification of the return before the Assessing Officer within a period of one week from today. Learned Counsel appearing on behalf of the Petitioner states that this would be done without any delay and in any event within a week. In that view of the matter and with the aforesaid direction, we quash and set aside the impugned order dated 21 March 2011.