Karnataka High Court Directs CBDT To Extend Tax Audit Due Date To 31st October

The Karnataka High Court today directed the Central Board of Direct Taxes to extend the due date for filing Tax Audit Reports under Section 44AB of the Income Tax Act, 1961, by one month to 31st October, 2025.

For reference: “Section 44AB of the Income Tax Act, 1961 mandates compulsory audit of accounts for businesses and professionals above a specified turnover or gross receipts threshold.”

The Court took into consideration the difficulties faced and directed the CBDT to extend the due date until the end of October.

It was contended by the association that the technical issues in income tax e-filing portal along with delays in release of updated forms and the heavy workload on professionals during the audit season made it impossible to complete tax audits within the limited timeframe.

Earlier, the Rajasthan High Court also directed the CBDT to grant an extension of 30 days for filing of the audit report. A division bench of Justice Pushpendra Singh Bhati and Justice Bipin Gupta noted that the CBDT had allowed similar relaxations in past years. 

The senior counsel appearing for the petitioner stated that certain technical glitch or that certain forms had not been uploaded is belatedly uploaded, which has led to the delay in complying within the timeline.

He submitted that for the regular taxpayers,  the time was extended by the revenue themselves from 31.07.2022 to 16.09.2022. He  submitted as a corollary, the petitioners and the like, should also get such extension of four weeks in the least. He also submitted that a division bench of the Rajasthan High Court in the case of TAX BAR ASSOCIATION AND ANOTHER VS. UNION OF INDIA AND ANOTHER, IN CIVIL WRIT PETITION No.18528/2025, has considered the issue and granted four weeks time.

Justice M Nagaprasanna in his order said:

"In the light of the said circumstance, I deem it appropriate to show indulgence to these petitioners and grant an order of the kind that is granted by the High Court of Rajasthan for the reason that if 30th September, 2025 would pass by, the issue would become fait accompli. Therefore, the time shall stand extended upto 31.10.2025, which would mean 30 days from 30.09.2025, for the purpose of uploading tax audit report and consequential actions. The extension is however, subject to further submissions being made by the respondents' learned counsel, Sri M. Dilip".

The matter is listed after Dusshera vacations. 

Case title: The Karnataka State Chartered Accountants Association AND Central Board of Direct Taxes

Case No: WP 29434/2025

Counsel for petitioner: Senior advocate Vikram Huilgol, advocate Sandeep Huilgol 

Counsel for respondent: Sri M. Dilip

Click Here To Read/Download Order