Filing of IT returns: Gujarat High Court urges Centre to allow physical filing in view of glitches on Income Tax portal

The Gujarat High Court last week asked the Central government to consider allowing physical filing of Income Tax (IT) Returns because of technical glitches on the Income Tax Portal [Vikash Jain v. Union of India]..A Bench of Justices JB Pardiwala and Nisha M Thakore urged the Central Board of Direct Taxes to take a practical view of the issues faced by assesses on account of technical problems faced on the IT portal.“The authority should not overlook this fact and try to solve the problems or ease the difficulties which the assesses are facing,” the Bench stated..The Court was hearing a plea filed in public interest by a chartered accountant seeking extension of deadline for filing Tax Audit Report (TAR) and Income Tax Returns (ITR) for the assessment year 2021-22 on the ground that the new Income Tax portal was not functioning optimally.The government told the Court that the deadline has already been extended, a stand which was appreciated by the Bench.However, the concern regarding the poor functioning of the IT portal was pressed, prompting the Court to ask the government to consider allowing physical filing..It was stated on behalf of the petitioner that technical glitches had led to a situation where taxpayers and their tax advisors were unable to file returns through the portal due to no fault of theirs.“It is a reciprocal obligation,” stated the petition explaining that while the taxpayer has to file returns, the IT Department is obligated to provide a functional portal for the same.However, when the department fails to fulfill its obligation, the obligation on the taxpayer cannot persist, it was contended.“It is not the unreasonable request of the petitioners and taxpayers when the tax portal provided by the respondents have not been working for no default on the part of the taxpayers,” the petition stated..The petitioner prayed that the Court should direct the respondents to accept physical forms till the new income tax portal stabilises and becomes glitch-free..After hearing the submissions, the Court observed that assessees should be able to make the best of the extended time period provided by the government and should technical glitches continue, even an extension of further three months would not solve any problems..The Court, therefore, requested Additional Solicitor General Devang Vyas to take these issues up with the highest authority at the earliest, and adjourned the case for January 17..Senior Advocate Tushar Hemani assisted by advocates Avinash Poddar, Nipun Singhvi and Vishal J Dave appeared for the petitioner.