Punjab & Haryana High Court Warns CBDT Over Delay in Extending ITR Deadline for Audited Cases

High Court Raises Concern Over CBDT Delay in Extending ITR Deadline for Audit Cases

Oct 29, 2025 | 10:28 AM

Income Tax

Income Tax Department

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The matter of extending the Income Tax Return (ITR) filing deadline for taxpayers whose accounts require statutory audit has once again drawn judicial attention. The Punjab & Haryana High Court has expressed dissatisfaction with the Central Board of Direct Taxes (CBDT) over the delay in notifying the extended due date, despite a clear direction from another High Court.

Earlier this month, the Gujarat High Court, while hearing a public interest matter concerning the challenges faced by auditors and taxpayers, directed that the ITR filing deadline for audit cases (covered under Section 44AB of the Income Tax Act, 1961) be extended from 31 October to 30 November 2025. The extension was aimed at providing relief to businesses and professionals who have been struggling with multiple overlapping compliance timelines, increased reporting formats, and technical system load during peak filing periods.

However, even after the Gujarat High Court’s order, CBDT had not issued the official notification to give effect to the extension. During the recent hearing, the Punjab & Haryana High Court observed that orders passed by a “coordinate High Court” are binding and are meant to be implemented by central authorities without delay. The bench remarked that such judicial orders cannot be treated as advisory or optional.

The Court further noted that taxpayers and their advisors are already operating under significant pressure due to:

The completion and verification of audit reports,
Digital compliance requirements,
System processing load on the Income Tax Portal.

Given these practical challenges, the Court held that timely administrative action is essential to avoid undue hardship.

In strong words, the High Court conveyed that if the CBDT fails to issue the notification extending the ITR deadline by 29 October 2025, the Board may have to face contempt of court proceedings for non-compliance.

Also Read : Gujarat High Court Orders Extension of ITR Filing Deadline for Audited Cases to November 30

The directive is expected to bring relief to a wide category of taxpayers including companies, LLPs, partnership firms, professionals, and businesses for whom audits are mandatory. Extending the deadline ensures better accuracy in documentation and reduces the risk of errors or last-minute filings.

As of now, taxpayers and tax practitioners are advised to keep monitoring official updates. While the extension is anticipated, it will only become legally effective after the CBDT publishes the notification at its end.