Source: The Economic Times
Jaipur, 24th September 2025: The Rajasthan High Court has provided significant relief to taxpayers and chartered accountants by ordering the government and the Central Board of Direct Taxes (CBDT) to extend the due date for filing the Tax Audit Report (TAR). The due date was previously September 30, 2025, but the court extended it to October 31, 2025.
Why the Court Gave This Order
The order was issued by the Jodhpur bench of the Rajasthan High Court after considering petitions filed by the Bhilwara Tax Bar Association and the Jodhpur Tax Bar Association. The two Bar Associations had sought additional time due to the multitude of issues faced during this year’s filing season.
As per their statement, the income tax utility forms were delayed and many taxpayers experienced technical issues when using the e-filing portal. Consequently, the delays made it nearly impossible for professionals to finalize audit reports in time.
The grouping(s) brought attention to the fact that the government had already extended deadlines for non-audit taxpayers, from July 31 to September 15 and then to September 16. However, no such consideration was given to taxpayers who are required to file audit reports. Thus, the associations had no choice but to go to court.
Tax experts welcomed the High Court’s decision.
KSCAA said: “We respectfully submit that repeated extensions of filing deadlines would be entirely unnecessary if the administration fulfilled its core responsibilities, namely, the timely release of forms, schemas, and utilities, along with the maintenance of a robust and glitch-free portal. In this regard, it is pertinent to note the judicial pronouncement in All Gujarat Federation of Tax Consultants vs. Central Board of Direct Taxes & Ors. (Special Civil Application No. 15075 of 2015), wherein the Hon’ble Court directed the CBDT to ensure that forms and utilities for e-filing of income tax returns are ordinarily made available on the 1st day of April of the assessment year.
Next Steps and Hearing Date
The order made by the High Court is interim in nature. The next hearing in this matter is listed for October 27, 2025. The CBDT must also publish an official notification for the extension to be valid in the entire country.
What is a Tax Audit Report?
Some taxpayers are required to have their accounts audited by a chartered accountant in accordance with section 44AB of the Income Tax Act. An audit of the taxpayer’s accounts is reported on Form 3CA or Form 3CB and also contains Form 3CD. Tax audits fulfill the purpose of ensuring that taxpayers are in compliance with tax laws and that the taxpayer has accurately reported their income.
Due to the High Court’s order, taxpayers and professionals now have an additional month to prepare and file their audit reports. This removes the pressure of completing their audit reports at the last minute.
