Gujarat High Court Questions CBDT Over ITR and Tax Audit Deadline Discrepancy

Gujarat High Court Questions CBDT Over ITR and Tax Audit Deadline Discrepancy

The Gujarat High Court has sought an explanation from the Central Board of Direct Taxes (CBDT) as to why it extended the deadline for filing the Tax Audit Report (TAR) without simultaneously extending the due date for filing the corresponding Income Tax Return (ITR).

The court’s query is rooted in the legislative intent that links the two deadlines.

Key Points of the Court’s Observation

• Statutory Linkage of Due Dates: The petitioners argued, and the court referenced a previous ruling, that Explanation (ii) to Section 44AB of the Income Tax Act mandates a direct link: the “specified date” for filing the TAR must be one month prior to the “due date” for filing the ITR under Section 139(1).
• CBDT’s Action: Following petitions, the CBDT extended the deadline for filing the tax audit report for the Financial Year 2024-25 (Assessment Year 2025-26) from September 30 to October 31, 2025.
• The Inconsistency: The petitioners contended that since the TAR deadline was pushed to October 31, the ITR filing deadline for audit cases should automatically be extended to November 30, 2025, to maintain the one-month gap. Without this simultaneous extension, both deadlines effectively remain October 31, which overrides the express provision of the Act.
• Overriding Legislative Intent: The court cited its own 2024 precedent, which held that the CBDT cannot extend the TAR filing date alone without extending the ITR filing date, as this would amount to overriding the provisions of the Income Tax Act. The court stated that since Section 119 of the Act does not empower the CBDT to relax the provisions of Section 44AB, the legislative intent is clear that the two dates should be synchronous.

The High Court issued notice to the CBDT, requiring them to explain their rationale for the inconsistency.