CBDT notifies Rules prescribing ‘any other person’ to verify ITR & appear before authorities for Co./LLP

Notification No. G.S.R. 578(E), dated 18-08-2021

A return of income can be verified by a person prescribed under section 140 of the Income-tax Act. In respect of companies, the return can be signed and verified by the company’s Managing Director. However, if for any unavoidable reason the Managing Director cannot verify the return or where there is no Managing Director, the return may be verified by any director of the company. Similarly, in the case of an LLP, the return shall be verified by the designated partner thereof, or where for any unavoidable reason such designated partner is not able to verify the return, or where there is no designated partner as such, by any partner thereof. To remove the practical difficulties faced by taxpayers while filing of return of income, the Finance Act, 2020, has amended the provisions of Section 140 to enable any other person, as may be prescribed by the Board, to verify the return of income in the cases of a company and an LLP.

In exercise of such power, the CBDT has inserted a new Rule 12AA to prescribe the other person who can verify a company’s return and an LLP. This rule provides that any other person shall be the person, appointed by the National Company Law Tribunal (NCLT), for discharging the duties and functions of an interim resolution professional, a resolution professional, or a liquidator, as the case may be, under the Insolvency and Bankruptcy Code, 2016 and the rules and regulations made thereunder.

Further, Section 288 provides the list of the persons who can appear before any Income-tax Authority or the Appellate Tribunal, on behalf of an assessee, as his “authorised representative” for any of his income-tax proceedings.

Insolvency and Bankruptcy Code, 2016 empowers the Insolvency Professional or the Administrator to exercise the powers of the Board of Directors or corporate debtor to act as an “authorised representative” in front of the Adjudicating Authorities. Thus, the Finance Act, 2020 amended Section 288 to empower the CBDT to prescribe any other person who can appear as an authorised representative before the Income-tax authority.

In exercise of such power, the CBDT has inserted a new Rule 51B to prescribe the other person who can appear as an authorised representative. This rule provides that any other person, in respect of a company or an LLP shall be the person appointed by the NCLT for discharging the duties and functions of an interim resolution professional, a resolution professional, or a liquidator, as the case may be, under the Insolvency and Bankruptcy Code, 2016 and the rules and regulations made thereunder.

Read the Full Notification Here