Gujarat High Court Demands Explanation from CBDT on Non-Extension of Due Date for Tax Returns

Court Rules that Specified Date and Due Date Must Align as per Legislative Intent

In a significant judgment, the Gujarat High Court has directed the Central Board of Direct Taxes (CBDT) to provide an explanation for not issuing a simultaneous notification to extend the due date for filing tax returns under Section 139(1) of the Income Tax Act, 1961, alongside the extended specified date for furnishing tax audit reports under Section 44AB. This directive was issued in response to petitions filed by the Income Tax Bar Association and others, who contended that the due date for filing returns should be extended in tandem with the extension of the specified date for audit report submissions.

The case, presided over by Justices Bhargav D. Karia and Pranav Trivedi, highlighted the inextricable link between the specified date for tax audit reports and the due date for filing returns, as mandated by the legislative framework. The court emphasized that the legislative intent clearly mandates alignment of these dates, and any unilateral extension by the Board would override the statutory framework.

The petitions were prompted by a recent circular issued by the CBDT extending the specified date for the tax audit report from September 30, 2025, to October 31, 2025. However, no corresponding extension was made for the due date of filing returns, which petitioners argued was necessary to maintain compliance with the legislative intent.

Drawing upon precedent from the case of All Gujarat Federation of Tax Consultants v. Central Board of Direct Taxes, the court reaffirmed that the Board cannot alter one date without the other, as doing so would contravene the statutory provisions and legislative intent. The judgment underscored the necessity for the Board to issue a simultaneous notification extending the due date for returns to ensure consistency and compliance with the Income Tax Act.

The court has issued a notice to the CBDT to respond by October 6, 2025, explaining the rationale behind the lack of a simultaneous extension notification. This judgment marks a crucial development in the interpretation of statutory deadlines concerning tax compliance, reiterating the judiciary's role in upholding legislative intent and statutory frameworks.

Bottom Line:

Income Tax Act - Specified date for filing tax audit report under Section 44AB and due date for filing return of income under Section 139(1) are inextricably linked. The Board cannot extend the "specified date" without extending the "due date" for filing returns, as it would override the legislative intent. 

Statutory provision(s): Income Tax Act, 1961 Sections 44AB and 139(1), Article 226 of the Constitution of India

Income Tax Bar Association v. Union of India, (Gujarat)(DB) : Law Finder Doc Id # 2788541