CITY & INDUSTRIAL DEVELOPMENT CORPORATION OF MAHARASHTRA LIMITED Vs. ASSISTANT COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The Petitioner - City and Industrial Development Corporation of Maharashtra Limited (CIDCO) is a Government Company, which has challenged the provisions of Section 139 read with Section 139D of the Income Tax Act, 1961 (the IT Act) and Rule 12 of Income Tax Rules, 1962 (the IT Rules), which compulsorily require the Petitioner to file return of income electronically under the digital signature in a fixed format without permitting the Petitioner to file a paper return of income.

(2.) It is the Petitioner's case that the Petitioner is acting as an agent of Government of Maharashtra while performing the functions of'New Town Development Authority' (NTDA) and'Special Planning Authority' (SPA) under the Maharashtra Regional and Town Planning Act, 1966 (MRTP Act). Accordingly, the Petitioner is only liable to pay income tax on agency remuneration received by the Petitioner and all other details in the balance-sheet, etc. which are mandatorily required to be filled in the fixed format electronic return is not relevant for the assessment of the Petitioner. Considering the voluminous activities performed by the Petitioner, the audit of the Petitioner is still under progress. The Petitioner is therefore seeking urgent ad-interim reliefs permitting the Petitioner to file the return of income in paper form for the assessment year 2019-20 and to treat the same as valid subject to final disposal of the Writ Petition and that the Petitioner be permitted to file return of income in electronic form as soon as the account of the Petitioner are audited by the Comptroller and Auditor General of India and the same be treated as filed in accordance with law within prescribed time.

(3.) The learned Senior Advocate appearing for the Petitioner has submitted that the last date of filing the return of income as per Section 139 of the Act was 31st March, 2020. The Writ Petition was lodged on 23rd March, 2020 but could not be moved for circulation as the Courts were not functional due to COVID-19 situation. The Central Board of Direct Taxes by its Notification dated 24th June, 2020 has extended the date of filing the return of income for the assessment year 2019-20 till 31st July, 2020. No further extension is notified. It is further submitted that the Chief Accounts Officer of the Petitioner has now received the following message from the Income Tax Department: