The Gujarat High Court has directed the Central Board of Direct Taxes (CBDT) to extend the deadline for filing Income Tax Returns (ITRs) in audit cases
to November 30, 2025, from the current deadline of October 31, 2025. This extension is contingent on the CBDT accepting the order and not appealing to the Supreme Court, according to The Economic Times report. If accepted, CBDT will need to issue an official notification confirming the change. Why Was The Extension Sought? The extension request was initiated by the Income Tax Bar Association and others through writ petitions, arguing that since the deadline for submitting tax audit reports under Section 44AB was already extended to October 31, 2025, the corresponding due date for filing ITRs under Section 139(1) should be extended by one month to November 30, 2025, the report added. The petitioners highlighted that these deadlines are interlinked and statutory, based on the legislative framework set by the Finance Act, 2020. The key argument was that extending the audit report deadline without adjusting the ITR deadline violates legislative intent and defeats the purpose of the mandatory one-month gap between these dates. Citing the 2014 ruling in All Gujarat Federation of Tax Consultants v. CBDT, the petitioners emphasised that the due dates for audit reports and tax returns are legally interconnected, the report suggests. Key Legal Provisions At Play The dispute centres around Section 44AB of the Income Tax Act, which defines the “specified date” for audit reports as one month before the due date for filing ITRs under Section 139(1). The Finance Act, 2020 reinforced this by mandating a one-month gap between submitting audit reports and filing returns. While CBDT extended the audit report submission deadline from September 30 to October 31, 2025, it did not extend the ITR filing deadline, which remains October 31, 2025. This discrepancy forms the crux of the issue, as per the report. Gujarat High Court’s Observations The court criticised CBDT’s unilateral extension of the audit report deadline without a corresponding extension for ITR filing, noting that it contradicts the statutory framework, noted in the report. It pointed out that the CBDT Circular No. 14/2025, which extended the audit report date, was inconsistent with the law because it failed to maintain the legally mandated one-month gap. The court emphasised that technological challenges related to the e-filing portal should not override statutory requirements. The court also referenced historical data, showing that in previous years, the CBDT consistently maintained at least a one-month gap between audit report and ITR filing deadlines, reinforcing the importance of this timeline, claims the report. What’s Next? If CBDT adheres to the High Court’s directive and refrains from appealing, taxpayers involved in audit cases will have until November 30, 2025, to file their returns, easing compliance pressure and aligning deadlines more logically.
