Gujarat High Court Questions CBDT For Extending Audit Report Deadline Without Extending ITR Filing Due Date

The Gujarat High Court recently sought an explanation from the Central Board of Direct Taxes (CBDT) as to why it had not extended the due date for filing income tax return (ITR) when it had extended the specified date for filing tax audit report for Financial Year 2024-2025.The court sought an explanation after taking note of an earlier decision where it had held that Board cannot extend the due date of filing tax audit report alone without extending the due date for filing return of income, which amounts to overriding the provisions of the Income Tax Act.Taking note of an earlier decision, a division bench of Justice Bhargav Karia and Justice Pranav Trivedi in its order said:"In view of above decision of this Court whereby due date for filing the return under section 139(1) is also deemed to have been extended after one month from the date of extension of the specified date by the respondent Board, in our opinion, the respondent Board is required to explain as to why the simultaneous notification for extension of due date is not issued". The court was hearing a batch of pleas seeking directions to extend the specified date for filing the tax audit report under section 44AB of the Income Tax Act, 1961 and as a corollary to extend the due date for filing the return under section 139(1) of the Act in view of explanation (ii) of section 44AB which explains the “specified date”.As per this provision the “specified date”, in relation to the accounts of the assessee of the previous year relevant to an assessment year, means date one month prior to the due date for furnishing the return of income under sub-section(1) of section 139.The counsel for the petitioner Income Tax Bar Association argued that after the filing of the petition, the respondent authorities had issued a Circular on September 25 extending the “specified date” for furnishing the report of audit under any provisions of the Act for the Financial Year 2024-2025 relevant to Assessment Year 2025-2026 from September 30 to October 31.The counsel argued that the authorities should have simultaneously extended the due date for filing ITR."In view of above facts emerging from the record and in view of Circular No. 14/2025, the grievance of the petitioner for extending the specified date for furnishing the audit report has been redressed. However, learned advocates for the petitioners submitted that as per Explanation (ii) to section 44AB “specified date” has to be one month prior to due date of filing the return as per section 139(1) of the Act and therefore, the respondents ought to have also issued simultaneous notification for extending the due date of filing of return upto 30.11.2025," the order notes. The petitioner's counsel referred to All Gujarat Federation of Tax Consultants v. Central Board of Direct Taxes (2024) where high court had held that expressions “specified date” in section 44AB and “due date” in section 139 of the Act are inextricably linked together. The court had in its earlier decision said:"The legislative intent is clear. Namely that, the due date for filing return of income and the specified date for furnishing tax audit report under section 44AB of the Act should be the same. The Board in exercise of powers under section 119 of the Act, therefore, cannot issue any circular or notification which is contrary to the legislative intent and the scheme of the enactment which envisages that the “specified date” and “due date” should be the same. The inevitable conclusion, therefore, is that the Board could not have extended the due date of filing tax audit report alone without extending the due date for filing return of income as that would amount to overriding the provisions of the Act. Moreover, the very fact that section 119 of the Act does not empower the Board to relax the provisions of section 44AB of the Act, clearly reflects the legislative intent not to permit relaxation of the “specified date” without relaxing the “due date”. Had the legislature intended to permit relaxation of the specified date for furnishing tax audit report alone, it would have included section 44AB in section 119 of the Act".The bench thus asked the respondent to give explanation on non-extension of ITR filing deadline and listed the matter on October 6. Case title: INCOME TAX BAR ASSOCIATION & ANR. v/s UNION OF INDIA & ORS.R/SPECIAL CIVIL APPLICATION NO. 13533 of 2025Click Here To Read/Download Order

Gujarat High Court Questions CBDT For Extending Audit Report Deadline Without Extending ITR Filing Due Date

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Gujarat High Court Questions CBDT For Extending Audit Report Deadline Without Extending ITR Filing Due Date

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