CBDT says electronically filed return on 30.09.08 but acknowledgement shows date 01.10.08- are to be treated as filed in time. - Suggestion to waive condition of 'filed on 30.09.08' to avoid disputes and controversies.

[C.A. DEV KUMAR KOTHARI]

Due date for filing of t\return:

When a last  date is fixed for filing of any document, it can be said that the filing can be till 12PM of that day, because the date changes after 12PM. In past ,there have been some rulings also in this regard in connection with filing of  physical documents.

When a document is filed physically, it is generally considered that the document should be filed within normal working hours or extended hours, if so allowed by authorities. However, if there is facility of drop box, then documents dropped in such box before 12 Pm (or possibly before the office opens on the  next day) can be considered as filed timely.

In some legal provisions (e.g Companies Act)  we also find that delivery of document at the office of concerned party/ officer is considered compliance of  requirement. Therefore, suppose on the last day document is delivered in the receiving letter box, then it can be considered as sufficient requirement of filing in time, though the receiving office may open the letter box on the next working day and place stamp of receiving as of that day. The delivering party should, in such circumstances mention the date of dropping the document in the box.

When a document is filed electronically/ on line, the concept of last moment is more relevant because till last moment of the date the due or last date continue.

Care should be exercised to avoid last moment rush:

However, care should definitely be exercised to avoid last moment rush because who knows which problem can hamper filing of document. For example, recently we have faced lot of troubles in internet connections (no connectivity/ repeated disconnection/ slow speed, repeated errors messages etc.) due to damages of some cables in the Mediterranean Sea and also some problems in ISP' like DATAONE broad band service of BSNL.

Returns filed on 30.09.08 but acknowledgement show date 01.10.08:

It  so happened that in many returns which were  filed on 30.09.08, the e-acknowledgement shows date of receipt as 01.10.08. If such returns are considered as filed late there will be damaging consequences including inter alia  charge of interest for late filing of return, loss of benefit of carry forward of losses, loss of exemptions which are dependent upon timely filing of return, penalties for s\certain failures etc. However, the CBDT has issued order to treat such returns as filed in time.

The text of  circular/ order  is found in TMI commentary:

We find  relevant portion of the text of the circular or order in recent commentary at www.taxmanagementindia.com  .The same is reproduced below, with high lights  for ready reference:

No penal action on electronically filed IT returns bearing acknowledgement date stamp of 1st October 2008

The Central Board of Direct Taxes have ordered that any return of income for the assessment year 2008-09 filed electronically on 30th September 2008, in respect of which the electronic acknowledgement bears the date stamp of 1st October 2008, shall be treated as having been filed within the due date, i.e. 30th September 2008.
Accordingly, such returns of income shall be eligible for all benefits of filing of tax returns by the due date and no penal consequence shall be attracted for failure to file the return by the due date.

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In view of the above order it is necessary for assesses to show that the return was electronically filed before end of 30.09.08 that is before 12PM of 30.09.08.

Because, if a return is filed at 0:00:01 hours it will be considered as filed on the next day that is  01.10.08. In some circumstances it may be difficult to establish time and date of filing of return and the officer may  contend that it is not beyond doubt that the return has been filed on 30.09.08 because if that be the case, why acknowledgment shall bear date of 01.10.08. Another dispute can be regarding time differences between timer set in computer of the return filer and the standard time followed by the website of I.T. Department.

Purpose seeking approach:

Considering purpose seeking approach  some other  possible views can  be that till the Sun rise on 01.10.08  ( say at about  5:15 AM) or till the office of Income Tax Department open in regular course at 10:00 AM on 01.10.08 the date of filing should be taken as 30.09.08 in case the return is filed electronically or a return is dropped in letter box of the department.  

Suggestion:

To avoid all such disputes and controversies it would have been better approach for the CBDT to prescribe that any return filed electronically will be considered to have been filed in time, if the electronic acknowledgment is dated 01.10.08 without laying down condition of 'filed electronically' on 30.09.08'.