Rajasthan High Court Directs CBDT to Extend Tax Audit Report Filing Deadline to October 31

The Rajasthan High Court's Jodhpur bench has issued an interim order to the Central Board of Direct Taxes (CBDT) to extend the deadline for filing Tax Audit reports to October 31. This decision came during a hearing of a Public Interest Litigation (PIL) by the Jodhpur Tax Bar Association, which highlighted issues with the Income Tax portal.

The court's division bench, comprising Justice PS Bhati and Justice Bipin Gupta, instructed the CBDT to notify this extension. The next hearing is scheduled for October 27. The petitioner association's counsel argued that large firms, trusts, companies, and traders must complete their audits by September 30, leaving insufficient time.

Deadline Challenges and Demands

Approximately 40 lakh audit reports are typically filed annually before the deadline. However, as of September 23, only about 4 lakh reports had been submitted nationwide. This leaves an overwhelming task of filing 36 lakh reports in less than a week, which the petitioner association deemed impossible.

Tax professionals and business owners across India have been urging for an extension of the deadline. The petitioner cited similar petitions from other regions to support their case. They also pointed out that the utility for filing the Tax Audit Report was released on July 18, with significant changes made on August 14.

Impact of Portal Changes and Festive Season

The statutory due date remains September 30, giving taxpayers only 47 days instead of the legally required 183 days. Under Association President Ajay Soni's leadership, the PIL demanded either an extension of due dates for filing Tax Audit Reports and Income Tax Returns or permission for physical filing.

Soni highlighted that during the festive season, traders are preoccupied with managing business accounts instead of focusing on customers. He questioned how millions of audits could be completed in just ten days and urged the government to address this issue.

Despite raising concerns earlier, no action was taken by authorities. Consequently, filing a PIL in the High Court became necessary as a last resort. The court's directive aims to provide relief to taxpayers facing challenges due to portal issues and tight deadlines.

With inputs from PTI