A division bench comprising Justices S. Muralidhar and Prathibha M Singh recently admitted an appeal filed by the Chamber of Tax Consultants against the provisions relating to Income Computation and Disclosure Standards (ICDS) under the Income Tax Act, 1961.
The bench further issued notice to the Centre granting them four weeks time for filing reply.
“In the meanwhile, the pendency of this petition will not preclude Respondent Nos.1 and 2 from holding consultations with the Petitioner No.1 and other professional bodies and consider the representations already stated to have been made by them on the issue.”
In the petition, the petitioners impugned the constitutionality of Section 145 of the Income Tax Act and the connected notifications requiring compliance with Income Computation and Disclosure Standards.
The Central Government last year notified 10 Income Computation and Disclosure Standards (ICDS) vide Notification w.e.f 1.4.2015. In the light of representations received from stakeholders, Expert Committee appointed by the CBDT had revised the above notification as per Notification No.87/2016. Both the notifications are challenged in the petitions.
Senior Counsel S. Ganesh, who appeared for the petitioners, submitted before the Court that although at this stage he is not pressing for any ad interim directions, the requirement for compliance of the impugned ICDS would arise at the time filing of returns and therefore it is important that the petition be heard at an early date after completion of pleadings.
The matter posted to August 28th for hearing.
Read the full text of the Order below.
