Rajasthan HC order Directing CBDT to Extend Tax Audit Due Date released [Read Order]

The Tax Bar Association and its members (petitioner) have filed a writ petition (D.B. Civil Writ Petition No. 18528/2025) in the High Court of Judicature for Rajasthan at Jodhpur against the Union of India, the Department of Revenue, and the Central Board of Direct Taxes (CBDT) (respondents) before the Honourable Mr Justice Bipin Gupta. This petition is connected to an earlier writ petition (D.B. Civil Writ Petition No. 18593/2025) titled Tax Bar Association and Shri Ajay Soni S/o Son of Shri Kishori Lal Soni vs. Union of India and Central Board of Direct Taxes (CBDT).

The matter was heard in court on 19.09.2025. The association has prayed the court to extend the due date for filing the Tax Audit Reports (TARs) under Section 44AB of the Income Tax Act because the Income Tax e-filing portal has been having technical problems. Additionally, it urged the court to direct the tax department not to impose any penalties or late fees if reports are filed late due to these problems. Also, it was prayed to permit taxpayers to submit TARs manually or via email if the portal does not work.

The association in court highlighted the following reasons for their request:

1. Late release of forms, filing utilities, and technical issues on the e-filing portal

• The audit-related forms and utilities (like 3CA-3CD and 3CB-3CD) were released much later than usual this year.
• Previous years had forms ready in April/May; this year, many forms came as late as July/August.
• This shortened the time available to prepare and file the reports.

2. Technical issues on the e-filing portal

• Login problems, slow speed, and server errors due to high traffic.
• Digital Signature Certificates (DSCs) are not working properly or causing errors.
• One-Time Passwords (OTPs) were delayed or not received.
• Problems registering new users or assessees.
• Mismatches between AIS/TIS data and Form 26AS are causing extra reconciliation work.
• Audit upload buttons not working, past data unavailable, grievance requests unresolved

Because of these problems, tax professionals and taxpayers who are required to get their audit done are facing difficulties in complying. This is increasing the risk of non-compliance; hence, it may lead to penalties or legal issues unfairly.

After analysing both the arguments of the petitioner and the respondents, the court has noted that there is a big difference in filing numbers between AY 2024-25 and AY 2025-26. Even if the portal starts working properly, there is very little time to file a report due to delays. Hence, the Rajasthan High Court has directed the respondent to extend the due date for filing the Tax Audit Reports (TARs) for the assessment year 2025-26 till October 31, 2025, from September 30, 2025. Additionally, CBDT has been directed to quickly fix glitches in the portal to make filing easier.

The Rajasthan High Court says, “The respondents are directed to extend the due date for filing Tax Audit Reports for AY 2025-26 from 30th September, 2025, to 31st October, 2025, for the portal. The respondents are further directed to resolve the technical glitches on the e-filing portal efficiently and expeditiously, thereby facilitating seamless compliance by taxpayers.”

The next hearing on this matter is scheduled for October 27, 2025.