Extend due date for filing I-T returns for auditable assessees: Gujarat HC to CBDT

Ahmedabad, Oct 14 (PTI) The Gujarat High Court has directed the Central Board of Direct Taxes (CBDT) to extend the due date for filing of Income Tax Returns (ITRs) for those assessees who are required to submit tax audit reports.

A division bench of Justices Bhargav D Karia and Pranav Trivedi on Monday directed the CBDT to issue a circular to extend the "due date" for filing ITR from October 31 to November 30 for auditable assessees.

"We direct the CBDT to issue a circular exercising power under sections 119 of the Income Tax Act to extend the due date for filing of return up to November 30, 2025 for the assessees who are required to file audit report as per section 139 of the Act for the Financial Year 2024-25 (Assessment Year 2025-26)," the court said in its written order.

In September last year, the Income Tax Bar Association had knocked the doors of the high court with a plea to extend the deadline of "specified date" for furnishing the audited reports and "due date" for submitting ITRs for the Financial Year 2024-2025 relevant to Assessment Year 2025-2026.

When the matter was being heard, the CBDT had on September 25 extended the "specified date" for furnishing tax audit reports from September 30 to October 31, 2025.

However, the corresponding ITR filing due date for those under audit remained October 31 as there was no announcement about its extension.

Seeking an extension of one month in the due date too, the petitioners' lawyers submitted that as per Explanation (ii) to section 44AB of the I-T Act, "specified date" has to be one month prior to the due date of filing the return as per section 139 (1) of the Act.

And therefore, it was argued by the petitioners that the CBDT "ought to have also issued simultaneous notification for extending the due date of filing of return up to November 30.

In its response, the CBDT informed the court that two separate circulars were issued by the Board last year extending specified date and due date. The specified date for the tax audit report was extended in the month of September, 2024 and the due date of ITRs for AY 2024-25 was extended in the month of October, 2024.

The Board further stated that "by the Finance Act, 2020, a one-month time gap between the filing of report of audit and return of income u/s 139(1) for the auditable assessees for the relevant Assessment Year was introduced from 2020".

The bench noted that there has to be a gap of one month between the specified date and due date for filing return as per the amended Finance Act.

"It appears that CBDT has a tendency to extend the due date for filing the return on the verge of completion of the period of due date after monitoring E-filing portal so that the last date rush of filing the return may be avoided," said the bench.

"However, in the facts and circumstances of the case, CBDT ought to have extended the due date as a consequence of extending the specified date as per Explanation (ii) to Section 44 AB of the Act, being one month prior to the due date of filing of the return of income," it said. PTI PJT PD NP