Punjab and Haryana High Court Orders CBDT to Extend Tax Filing Deadline

Assessees Required to File Audit Reports Get Relief with Extended Deadline to November 30, 2025

In a significant ruling, the Punjab and Haryana High Court directed the Central Board of Direct Taxes (CBDT) to issue a circular extending the deadline for filing tax returns to November 30, 2025, for assessees required to submit audit reports under the Income Tax Act, 1961. This directive comes as a relief to many taxpayers facing genuine hardship due to reduced time for filing, caused by the delayed availability of e-filing utilities.

The judgment, delivered by Justices Lisa Gill and Meenakshi I. Mehta, addresses the petitions filed by Ashwini Kumar and others, who sought an extension of the due date for filing tax audit reports beyond the original deadline of September 30, 2025. The court acknowledged the considerable reduction in time available to assessees due to the late release of e-filing utilities in August, 2025.

During the proceedings, it was noted that the CBDT had extended the deadline for non-audit cases but not for entities requiring audits. The court emphasized the necessity of aligning filing deadlines with statutory provisions to prevent undue hardship, referencing the Gujarat High Court's decision in the Income Tax Bar Association case, which had already ordered a similar extension.

The judgment also highlighted the statutory requirement for a one-month gap between the specified date for audit report submission and the due date for filing tax returns. This gap was intended to provide sufficient time for assessees to comply with their obligations, a provision the court insisted must be respected.

In their defense, the Union of India, represented by senior advocates, argued that the proposal for extending the filing deadline was under consideration. However, the court pointed out the urgency of the matter, given the impending expiry of the current deadline and the significant implications for taxpayers.

Ultimately, the court decided to dispose of the petitions, directing the CBDT to exercise its powers under Section 119 of the Income Tax Act, 1961, to issue the necessary circular extending the deadline to November 30, 2025. This decision aligns with the statutory provisions and ensures that assessees have adequate time to file their returns without facing unnecessary penalties or hardships.

The ruling is a testament to the judiciary's role in safeguarding taxpayer rights and ensuring administrative procedures do not infringe upon statutory obligations. The extension provides much-needed relief to numerous businesses and individuals navigating the complexities of tax compliance.

Bottom Line:

Income Tax Law - Extension of due date for filing tax audit reports and Income Tax Returns - CBDT directed to issue necessary circular to extend the due date for filing returns by assessees required to file audit reports under the Income Tax Act.

Statutory provision(s): Sections 44A, 44AB, 119, 139 of the Income Tax Act, 1961.

Ashwini Kumar v. Central Board of Direct Taxes, (Punjab And Haryana)(DB) : Law Finder Doc Id # 2814776