Background:
Earlier, the CBDT vide Notification No.93/2020-Income-tax dated December 31, 2020, Notification No. 10/2021 dated February 27, 2021, Notification No. 20/2021-Income-tax dated March 31, 2021, and Notification No. 38/2021 dated April 27, 2021 (“said Notifications”), prescribed the time limit and relaxation of certain provisions of Specified Acts as defined under Section 2(1)(b) of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (“TOL Act”).
Subsequently, Ministry of Finance issued Press Release dated June 25, 2021 to further extend timelines of compliances in view of the impact of the Covid-19 pandemic, as taxpayers were facing trouble in meeting certain tax compliances and also in filing response to various notices. In order to ease compliances to be made by taxpayers during this difficult time, relief has been provided through following notification:
Notification:
The CBDT vide Notification No. 74/2021, dated June 25, 2021, issued modification in the said Notifications, to further extend of time limit for compliance or completion of certain actions under Section 3(1)(a) or (b) of the TOL Act as under:
A. For Income Tax Act, 1961 (“IT Act”)
Where the completion of any action referred to in Section 3(1)(a) of the TOL Act, relates to passing of any order:
for assessment or reassessment as per the time limit specified in Section 153 (i.e., time limit for completion of assessment, reassessment and recomputation) or Section 153B (i.e., time limit for completion of assessment under Section 153A) of the IT Act, then the time limit for completion of such action expiring on June 30, 2021, shall be further extended to September 30, 2021.
for imposition of penalty under Chapter XXI (i.e., penalties imposable) of the IT Act-
i. September 29, 2021 shall be the end date of the period during which the time limit specified in, or prescribed or notified under, the IT Act falls for the completion of such action.
ii. September 30, 2021 shall be the end date to which the time limit for completion of such action shall stand extended.
The compliance of any action referred to in Section 3(1)(b) of the TOL Act, relates to intimation of Aadhaar number to the prescribed authority under Section 139AA(2) of the IT Act, the time-limit for such the compliance of such action shall stand extended to September 30, 2021.
B. Chapter VIII of the Finance Act, 2016 (“Finance Act”)
The completion of any action referred to in Section 3(1)(a) of the TOL Act, relates to sending an intimation under Section 168(1) of the Finance Act (i.e., processing of statement)-
The time limit for completion of such action expiring on June 30, 2021 due to its extension by said Notifications, shall be further extended to September 30, 2021.
Actions covered under Section 3(1)(a) and (b) of the TOL Act:
“(a) completion of any proceeding or passing of any order or issuance of any notice, intimation, notification, sanction or approval, or such other action, by whatever name called, by any authority, commission or tribunal, by whatever name called, under the provisions of the specified Act; or
(b) filing of any appeal, reply or application or furnishing of any report, document, return or statement or such other record, by whatever name called, under the provisions of the specified Act;”
The Notification can be accessed at: https://egazette.nic.in/WriteReadData/2021/227894.pdf