It is mandatory to provide 1 month gap between ITR (audit) date and Tax Audit date: Gujarat HC on date extension petition

 

HUGE BREAKING: LIVE GUJARAT HIGH COURT JUDGEMENT: It is mandatory to provide 1 month gap between ITR (audit) date and Tax Audit date. We hereby order CBDT to extend the same and issue necessary ininstructions.

Now, what CBDT would do?

Let us understand it.

1.  Audit Report Deadline Extended

Several High Courts (Rajasthan, Karnataka) have already directed CBDT to extend the deadline for filing the tax audit report (under Section 44AB) from 30 September 2025 to 31 October 2025.
CBDT has given effect to that extension in its notifications.

2.  ITR Filing Deadline (Audit Cases) Not Yet Extended

The ITR filing due date (for cases where a tax audit is required) is currently 31 October 2025, as per Section 139(1) schedule.
However, Gujarat High Court has sought explanation from CBDT on why it extended the tax audit report deadline without a corresponding extension of the ITR filing date.
The petitioners argue that under Explanation (ii) to Section 44AB, the “specified date” for audit must be one month prior to the return-filing date under Section 139(1).
The High Court has floated the proposition that the ITR due date should thus be extended to 30 November 2025 in audit cases.
In fact, Gujarat HC has directed CBDT to issue instructions accordingly.

3.  Legal Question of Authority / Powers

The issue before Gujarat HC is whether CBDT has the power (under Section 119 or otherwise) to extend the ITR deadline, and whether doing so is consistent with the statutory scheme which links the audit “specified date” and the return due date.
In an earlier judgment (All Gujarat Federation of Tax Consultants v. CBDT, 2014), the court held that CBDT cannot extend only the audit date without extending the return due date, since the scheme of the Act interlinks them.

What Options CBDT Has Now

Given the High Court’s direction and the legal considerations, here are the plausible options CBDT can take:

Option	What It Entails	Pros / Risks
Issue a Notification Extending ITR Filing Date (Audit Cases) to Nov 30, 2025	Use its powers (likely under Section 119 or other executive powers) to extend the due date for returns for cases requiring tax audit.	Aligns with HC order and statutory scheme; addresses taxpayer hardship. Risk: legal challenge on whether CBDT has authority.
Resist Extension / Oppose the HC Order	CBDT could argue its statutory limits or that extension would disrupt tax administration; seek to confine extension only to audit reports.	Maintains stricter control over deadlines. Risk: defiance of HC orders, litigation, or being held in contempt.
Seek Stay / Appeal / Clarification	File appeal or request stay on the HC direction, or ask Supreme Court to clarify or stay the HC order.	Buys time; possible higher court pronouncement. But delays hurt taxpayers.
Partial / Conditional Relief	Extend ITR for specific classes (e.g. those whose audit reports are filed late) rather than blanket.	More controlled relief; fewer administrative risks.
Coordinate with Parliament / Legislative Fix	Recommend legislative amendment to decouple or better link audit-return dates, giving CBDT explicit power to extend both.	Longer-term structural fix.

What Likely Will Happen (Given Trends and Pressures)

•  There is strong pressure from CA bodies, taxpayer associations, and multiple High Courts for extension of both audit and ITR deadlines.

•  CBDT has already behaved flexibly this year (extended ITR for non-audit cases to 15th September).

•  The HC’s direct order to CBDT to extend suggests the board is compelled to act or face judicial consequences.

Hence, the most viable “option” for CBDT now is to issue a notification extending the ITR filing date for audit cases to 30 November 2025, thereby giving at least a one-month gap (or more) between audit report and return filing, as demanded by the HC and consistent with the statutory linkage.