HC Directs CBDT to Extend ITR Due Date After Audit Report Deadline

Case Details: Income-tax Bar Association vs. Union of India - [2025] 179 taxmann.com 290 (Gujarat)

Judiciary and Counsel Details

• Bhargav D. Karia & Pranav Trivedi, JJ.
• Tushar Hemani, Sr. Adv., Dhinal A. Shah & Avinash Poddar for the Petitioner.
• Pradip D. Bhate, Varun K. Patel & Ankit Shah for the Respondent.

Facts of the Case

The Gujarat High Court has directed the CBDT to issue a circular extending the due date for filing income-tax returns to November 30, 2025, for assessees who are required to file audit reports under clause (a) of Explanation 2 to Section 139(1) for Assessment Year 2025–26.

Section 139(1) of the Income Tax Act, 1961, prescribes the due dates for filing the return of income. It provides that:

a) The due date shall be 31st October of the assessment year in the case of a company or a person whose accounts are required to be audited under this Act or under any other law; and

b) 31st July of the assessment year in the case of any other assessee.
In exercise of its powers under Section 119 of the Act, the CBDT extended the due date for furnishing the tax audit report for assessees referred to in clause (a) of Explanation 2 to Section 139(1) up to 31st October 2025. However, the due date for filing the ITR continued to remain 31st October 2025, thereby eliminating the one-month gap ordinarily prescribed between the two compliances.

As per Explanation (ii) to Section 44AB, the specified date for furnishing the tax audit report must be one month prior to the due date for filing the return of income. The Court observed that the expressions “specified date” under Section 44AB and “due date” under Section 139(1) are inextricably interlinked, forming part of a single statutory scheme. The legislative intent, made explicit by the Finance Act, 2020, is to ensure that the tax audit report precedes the filing of the return by a clear one-month interval.

High Court Held

Accordingly, the Court held that the CBDT’s circular extending only the specified date for filing the tax audit report, without a corresponding extension of the ITR due date, is contrary to the provisions of the Act and therefore ultra vires and invalid in law.

List of Cases Referred to

• Bansal Wire Industries Ltd. & Anr. v. State of Uttar Pradesh & Ors. (2011) 6 SCC 545 (para 14)
• Municipal Corporation of Greater Mumbai & Ors. v. Century Textiles and Industries Limited 2025 INSC 36 (para 15)
• All Gujarat Federation of Tax Consultants v. CBDT [2014] 50 taxmann.com 115/271 CTR 113/226 Taxman 210 (Gujarat) (para 21).