Courts Question CBDT: Why Extend Tax Audit Deadline but Not ITR Due Date?

Courts across India are asking a common question: if the government (CBDT) has already extended the deadline for filing the Tax Audit Report (TAR) to October 31, 2025, then why hasn’t the deadline for filing the Income Tax Return (ITR) for audit cases also been extended?

Normally, there’s supposed to be a one–month gap between the two deadlines. So, the courts are wondering why that rule isn’t being followed this time.

The Punjab and Haryana High Court were unhappy with the department’s delay and criticised its “laziness”. The court said this delay is causing confusion for taxpayers and professionals who are waiting for an official circular. According to updates from reporters, the department’s lawyer told the court that the required orders would “likely be issued by tomorrow”, meaning an official notification could come very soon.

CBDT has already extended the audit report filing deadline to October 31, 2025, as stated in Circular No. 14/2025. But the matching extension for filing Income Tax Returns (ITRs) in audit cases hasn’t yet been posted on the department’s official “Latest News” page. This missing circular is what everyone is waiting for, especially after the Gujarat High Court’s direction. Until it’s issued, taxpayers and professionals remain unsure about the final ITR due date.

Under the Income-tax Act and past court rulings, the logical order is clear- first, complete the audit, and then file the return. The Gujarat High Court has questioned why the government extends the audit deadline but not the ITR deadline at the same time, saying it creates confusion and goes against the intended process. The court also pointed out that the law expects a one–month gap between these two deadlines and therefore directed that ITRs for audit cases should be allowed until November 30, 2025.

September and October saw several petitions from professional bodies and bar associations from all states regarding portal issues, delayed utilities and new disclosure burdens. Media and professional recorder the sequence of delays and issues: First, the government extended the deadline for non-audit ITRs to mid-September. Later, it pushed the audit report deadline to October 31. Then, after courts got involved, the due date for audited ITRs was also extended. All these step-by-step extensions eventually led to the current court cases.

Given the Gujarat High Court’s explicit direction and the Punjab and Haryana High Court’s recorded dissatisfaction, it is reasonable for taxpayers and professionals to expect CBDT to publish a short, clarificatory circular aligning the ITR due date for audit cases with the extended audit deadline, i.e., to November 30, 2025. One of the CA added that “the profession simply seeks timely clarity; an early circular would save countless working hours and needless anxiety across audit teams.”

If CBDT sets 30 November as the deadline for filing ITRs in audit cases, three clear benefits will follow:

• Proper timeline restored: Audits can finish by 31 October, giving one full month after that to prepare and file the return carefully.
• Fewer mistakes: Tax professionals will have more time to check details, match data (like Form 26AS/AIS), report MSME payments correctly, and handle last-minute confirmations.
• Less confusion and disputes: A uniform national deadline based on the court’s direction will prevent different states from following different dates and reduce unnecessary litigation.

These are exactly the problems that bar associations have been complaining about during September and October.