KSCAA Flags Anomaly in CBDT Circular and Press Release: Transfer Pricing Taxpayers Left Out of Due Date Extension

The Karnataka State Chartered Accountants Association (R)(KSCAA) has recently issued a formal representation (Ref No: 003/2025-26), dated October 31, 2025, addressed to Shri Ravi Agarwal, chairman of the Central Board of Direct Taxes (CBDT), highlighting something strange noticed in the CBDT Circular No. 15/2025 and Press Release dated October 29, 2025, extending the due dates for taxpayers covered under Section 92E for the financial year 2024-25 (assessment year 2025-26).

The association was established in 1957, is a premier professional body representing the chartered Accountancy profession in Karnataka. In representation, KSCAA appreciated the move of CBDT to issue Circular No. 15/2025, dated October 28, 2025, which confirmed extension of ITR (Income Tax Return) and TAR (Tax Audit Report) due dates under Section 44AB for taxpayers falling under clause (a) of Explanation 2 to sub-section (1) of section 139 of the Income-tax Act, 1961 (the Act). Additionally, deeply showed its deep gratitude that, despite several High Courts directing CBDT to extend the TAR and ITR due date till October 31, 2025, and November 30, 2025, it made an extension in the ITR due date till December 10, 2025, and November 10, 2025, for furnishing audit reports. This action significantly facilitated the compliance process.

They also highlighted that the circular did not give the same extension to taxpayers who must file the accountant’s report under section 92E (Form 3CEB) for international or certain domestic transactions. This seems like a mistake and creates confusion. Because of this, these taxpayers may face different deadlines than others, which could lead to unnecessary compliance problems.

The CBDT’s Circular No. 15/2025, dated October 29, 2025, issued under Section 119 of the Act, said, “The Central Board of Direct Taxes (CBDT), in exercise of its powers under section 119 of the Income-tax Act, 1961 (the Act), hereby extends the due date for furnishing Income Tax Return (ITR) for the Previous Year 2024-25 (Assessment Year 2025-26) for the assessees referred in clause (a) of Explanation 2 to sub-section (1) of section 139 of the Act, from 31st October 2025 to 10th December 2025. Consequently, the specified date for furnishing of report of audit under the provisions of the Act for the Previous Year 2024-25 (Assessment Year 2025-26) shall stand extended to 10th November 2025 in terms of clause (ii) of the Explanation to section 44AB of the Income-tax Act, 1961.”

Thereafter, the Central Board of Direct Taxes (CBDT) issued a press release dated October 29, 2025, confirming the extension of due dates for a certain category of taxpayers. However, neither the circular nor the press release did not discussed about taxpayers falling under Section 92E, who are a category of taxpayers who face the maximum burden in compliance because of transfer pricing documentation and reporting requirements.

This seems like an unintentional mistake, because it creates an unfair situation. Companies that have to follow transfer pricing rules must file their Income Tax Returns by November 30, 2025. But other companies that only need a normal audit can file until December 10, 2025. So, the companies with more rules to follow have less time to file, which is not fair and goes against the usual practice of giving equal time to all audited taxpayers.

At the end of the presentation, the Karnataka State Chartered Accountants Association (R)(KSCAA) humbly requested CBDT to address the above anomaly.