The Punjab and Haryana High Court has issued a stern warning to the Central Board of Direct Taxes (CBDT) for not complying with the Gujarat High Court's order dated October 13, 2025, which directed an extension of the income tax return (ITR) filing deadline for audited cases. The court observed that continued inaction on the part of the CBDT could invite contempt proceedings.
The Gujarat High Court had earlier instructed the CBDT to extend the due date for filing ITRs for assessees covered under Section 44AB of the Income Tax Act, 1961 - those required to get their accounts audited from October 31, 2025, to November 30, 2025. The extension was sought to ease compliance difficulties caused by technical glitches on the income tax e-filing portal and the short interval between the audit report and return filing deadlines.
During Tuesday's hearing dtd. 28th October 2025, the Punjab & Haryana High Court expressed strong disapproval of the CBDT's delay in issuing the notification despite a clear directive from another High Court. The Bench warned that failure to comply with the order by October 29, 2025, would attract contempt of court proceedings against the concerned officials.
"When a judicial directive has been passed by a coordinate High Court, administrative authorities cannot sit in appeal over it. The CBDT is duty-bound to comply within the time prescribed," the court reportedly observed.
Also Read: Gujarat High Court Directs CBDT to Extend ITR Filing Deadline for Audit Cases by One Month
Tax professionals across the country have welcomed the court's intervention, noting that it recognizes the practical challenges faced by assessees and auditors. Many practitioners had flagged that server slowdowns and multiple public holidays in October left insufficient time to complete tax audits and file returns before the end-of-month deadline.
The Hon’ble Punjab & Haryana High Court has recorded the statement made by the learned Counsel appearing for the Department that the necessary orders regarding the extension are likely to be passed by tomorrow, and a copy of the same shall be placed before the Court.
— CA Himank Singla (@CAHimankSingla) October 28, 2025
It was… pic.twitter.com/529o0HoTDU
The ITR filing deadline for non-audited taxpayers remains unchanged, but the extension for audited assessees, if formally notified, is expected to bring significant relief to businesses, partnership firms and professionals covered under Section 44AB.
The CBDT's counsel informed the High Court that the matter has been taken up at the highest level and assured that a formal notification extending the due date would be issued by October 29.
As of now, the tax community and Chartered Accountants are closely monitoring the official channels for the CBDT's announcement. If the extension is notified, it will likely cover all assessees required to file tax audit reports and corresponding income tax returns.
Failure to comply, however, could trigger unprecedented judicial action, setting a strong precedent for administrative accountability in matters concerning taxpayer compliance relief.
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