The Gujarat High Court has sought clarification from the Central Board of Direct Taxes (CBDT) on why it has not extended the deadline for filing Income Tax Returns (ITR) for the financial year 2024-25, even after delaying the "specified date" for filing tax audit reports to October 31, 2025.
A bench comprising Justice Bhargav Karia and Justice Pranav Trivedi raised the issue following petitions filed by various tax practitioners' associations, including the Income Tax Bar Association, which sought directions to extend the ITR filing due date in line with the audit report deadline.
While the CBDT had postponed the tax audit report deadline from September 30 to October 31, the petitioners argued that, under explanation (ii) of section 44AB of the Income Tax Act, the "specified date" for tax audits should fall one month prior to the ITR filing due date under section 139(1). Therefore, they contended that the ITR filing deadline should also have been extended to November 30, 2025.
The petitioners cited a similar Gujarat High Court order from September 2024, which held that extending the tax audit report deadline without simultaneously extending the ITR filing date could override the provisions of the Income Tax Act. The bench observed that section 119 of the Act does not empower the CBDT to relax section 44AB, highlighting the legislative intent behind maintaining the alignment of deadlines.
The court has asked the CBDT to provide an explanation for not issuing a simultaneous notification to extend the ITR filing deadline. The matter is scheduled for further hearing on October 6, 2025.
This development is being closely watched by taxpayers and chartered accountants, as a timely extension of ITR deadlines is crucial to avoid penalties and ensure compliance.
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