Gujarat HC Orders CBDT to Extend Deadline for Filing Audit Cases Returns

The Gujarat High Court on Monday ordered the Central Board of Direct Taxes (CBDT) to push the Income Tax Return (ITR) filing deadline for audit cases to November 30. This decision ensures compliance with the provisions of the Income Tax Act, which mandates a one-month interval between submitting an audit report and the ITR.

In its Monday order, the court directed the CBDT to officially announce this extension through a circular by October 16 and to subsequently submit a compliance report before the court.

The order could impact a large number of taxpayers under audit. It was issued in response to a petition that pointed out an ‘inconsistency’ in a recent CBDT notification. While the board had extended the deadline for filing audit reports to October 31, it had not specified a corresponding extension for ITR filings under the relevant sections of the Act.

The Division Bench of Justice Bhargav D Karia and Justice Pranav Trivedi, dictated the order in open court on Monday, said, “We direct the respondent board to issue a circular extending the due date of filing of return up to November 30, 2025 for assesses who are required to file audit report. CBFT to issue such a circular and file compliance report on or before October 16.”

Advocate Avinash Poddar, representing one of the petitioners when the HC was hearing clubbed petitions in the case, told the media that the submissions made before the court emphasized on the explanations of the Act, which clearly establish that “specific date” for filing the audit report must precede the deadline for filing ITR by one month.  

He said,” As per Section 139(1) of the Act, the provision for the due date for filing ITR is to be a month after the due date for filing the audit report. In simple terms, the CBDT ought to have specified the extended deadline for filing ITR returns if it had specified the extension of filing audit reports. But it was unintentionally left unexplained.”

He also added that the Monday HC order would be applicable to all assesses subject to auditing. He said, “There had been multiple petitions across the country seeking extension in the deadline for filing audit reports. The Rajasthan HC first directed the extension of the deadline for the audit report, followed by the Karnataka HC. Now the Gujarat HC has specifically directed that the ITR date has to be extended in an explicit notification to comply with the provisions.”

On Monday, the court ordered, “Specified date means the date one month prior to the due date for furnishing return of income under Section 139 (1). Therefore, there is no question of extending the specified date (of filing audit reports) unless and until the due date of furnishing return of income tax is extended… if the specified date is extended (for audit reports)… the due date has to be extended accordingly by one month from the date of extension of the specified date (of audit report).”  

The court will review the matter on October 16 when the CBDT has also been instructed to file a compliance report in the court.