Tax Audit Report (TAR) Due Date Extension: Courts Step In as Deadline Nears

 

As the clock ticks towards the looming 30th September deadline, the tax audit season has once again turned into a season of litigations and courtroom battles. Out of nearly 40 lakh Audit Reports (ARs) that are required to be filed this year, barely 4 lakh have been filed with only a week left. Clearly, the burden on professionals and taxpayers remains enormous, and the demand for extension is echoing across the country.

Interestingly, while the Income Tax Return (ITR) due dates saw a round of extension, no parallel relief was granted for TAR filing, creating a mismatch and unnecessary hardship. This disparity has now forced tax bodies and professionals’ associations to approach different High Courts through writ petitions and PILs.

Snapshot of PILs & Writ Petitions Filed (as of 22nd September 2025, 4:00 PM)

1.  Jodhpur Tax Bar Association– Listed on 24.09.20252

2.  Bhilwara Tax Bar Association– Listed on 24.09.2025
3. Punjab & Haryana HC – CWP-28440-2025 (Ashwini Kumar v/s Central Govt.): Heard on 22.09.2025. Court directed Dept. Counsel to seek instructions from CBDT by 26.09.2025, failing which the Court may pass orders. Next hearing: 26.09.2025.
4. Delhi Tax Bar Association – W.P.(C) 14691/2025: Heard on 22.09.2025. Dept to seek instructions. Next hearing: 24.09.2025.
5. RTCA – Petition filed. Hearing date awaited.
6. ITBA Ahmedabad – Filed SLP at Gujarat HC on 22.09.2025. Details awaited.

Rajasthan High Court: Interim Relief Granted

A significant development has come from the Rajasthan High Court (Jodhpur Bench), which has recognized the practical difficulties faced by taxpayers and professionals. In its interim order, the Hon’ble Court has directed that:

•  Considering technical glitches and heavy pendency, respondents are required to issue a notification extending the due date for filing Tax Audit Reports.

•  The facility to file audit reports must be made fully operational.

•  Due date is to be extended by 30 days, i.e., till 31st October 2025.

•  Next hearing is fixed for 27th October 2025.

This interim relief has come as a ray of hope for thousands of taxpayers and Chartered Accountants struggling with the portal and compliance pressure.

The Larger Question

The annual tussle over due dates has almost become a ritual. Every year, the same set of issues-portal glitches, compliance pile-ups, and unrealistic timelines-crop up, forcing stakeholders to knock at the doors of the judiciary.

One cannot ignore the fact that despite repeated representations, the CBDT continues to resist timely extensions, leaving it to courts to intervene at the last moment. Had the TAR date been extended simultaneously with the ITR date, the current spate of litigations could have been avoided.

What Lies Ahead?

With multiple High Courts seized of the matter and at least one interim order already favoring extension, the writing on the wall seems clear. An all-India notification for extension of TAR due dates may be inevitable