TaxTMI 
TaxTMI 
TaxTMI 
2025 (11) TMI 172
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....of tax audit reports for a reasonable period from 30.09.2025 and as a necessary corollary to further extend the due date for filing tax returns. Petitioner in CWP No. 29131 of 2025 also seeks extension of deadline for renewal of registration under Section 12 of Income Tax Act, 1961 (for short 'the Act'). 3. Learned counsel for petitioners submitted that audit reports and tax returns are mandatorily to be e-filled. Forms of e-filing of audit report and tax returns were made available effectively by the Department only in August, 2025, thereby leading to considerable reduction of time period available to petitioners for filing tax audit reports. Certain changes were carried out in respect to tax audit reports vide notification dated 28.03.2025, however, e-filing utility was made available on 14.08.2025. Department itself acknowledged substantial changes and time required for system readiness when it extended due date for filing of tax returns in certain categories of persons other than Companies, Firms and individuals, whose accounts are not required to be audited (non-audit cases) from 31.07.2025 to 15.09.2025, as per press release dated 27.05.2025. Facts and circumstances are, t....
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....April, 2005, on or before the due date in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed :" xx xx xx xx xx Explanation 2.-In this sub-section, "due date" means,- (a) where the assessee [other than an assessee referred to in clause (aa) is- (i) a company; or (ii) a person (other than a company) whose accounts are required to be audited under this Act or under any other law for the time being in force; or (iii) a [***] partner of a firm whose accounts are required to be audited under this Act or under any other law for the time being in force [or the spouse of such partner if the provisions of section 5A applies to such spouse], the [31st day of October] of the assessment year." 5. Section 44AB of the Act reads as under:- "44AB. Every person,- (a) carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds one crore rupees in any previous year: Provided that in the case of a person whose- (a) aggregate of all amounts received including amount received for ....
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....r: Provided that this section shall not apply to a person, who declares profits and gains for the previous year in accordance with the provisions of sub-section (1) of section 44AD or sub-section (1) of section 44ADA: Provided further that this section shall not apply to the person, who derives income of the nature referred to in section 44B or section 44BBA, on and from the 1st day of April, 1985 or, as the case may be, the date on which the relevant section came into force, whichever is later : Provided also that in a case where such person is required by or under any other law to get his accounts audited, it shall be sufficient compliance with the provisions of this section if such person gets the accounts of such business or profession audited under such law before the specified date and furnishes by that date the report of the audit as required under such other law and a further report by an accountant in the form prescribed under this section. Explanation.-For the purposes of this section,- (i) "accountant" shall have the same meaning as in the Explanation below sub-section (2) of section 288; (ii) "specified date", in rel....
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....g to expire by 31st March 2025, falls on 30th September, 2025 for all such entities by virtue of time limit specified under sub-clause (ii) of clause (ac) of section 12A(1) of the Act. Therefore, there is no direct link between the prescribed time limit upto which an application in Form 10AB is required to be made, and the specified date/due date for filing audit reports/ITRs for AY 2025-26. iii) As per Rule 17A of the Income-tax Rules, 1962 (reproduced at Annexure 1), the documents required to be submitted inter-alia include self-certified copies of annual financial statements or tax audit reports (if applicable in some cases) of the Trust for the years, prior to the financial year in which the application is made, for which the accounts are made up. The annual financial statements or tax audit reports are needed only up to three such prior years, provided the Trust was in existence during such years. In other words, the law does not mandate submission of audited annual financial statements or tax audit reports at the time of filing application, in respect of those prior years for which the accounts have yet not been audited. Thus, for instance, if the application for ren....
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.... of return upto 30.11.2025 for the assessees as mentioned above. Learned counsel for respondent - UOI candidly conceded that decision dated 13.10.2025 is not subject to any challenge. In view thereof, learned counsel for respondent was asked to seek instructions as to whether necessary circular has been issued. It was, however, brought to our notice on 28.10.2025 that the matter is still under consideration and present writ petitions were adjourned for today. 8. Even as on today, learned counsel for Union of India submits that necessary circular in terms of decision dated 13.10.2025 has not yet been issued. Reference is made to e-mail dated 29.10.2025 received in the office of learned counsel from Under Secretary, Ministry of Finance, Department of Revenue, CBDT, wherein it is stated as under:- "In this regard, I am directed to inform that there is a regular filing of ITRs and Tax audit reports for AY 2025-26 till 29.10.2025 and filing statistics as on 29.10.2025 is enclosed for your perusal and necessary action. Further, I am directed to inform that a proposal regarding extension of due date for filing of ITRs in the case of auditable assessees for AY 2025-26 is under ....
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....ate of filing of the return . The present situation would restore the pre amended provision of filing audit report and return of income together contrary to existing provisions of the Act. 23. It appears that the respondent no. 2 - CBDT has always tendency to extend the "due date" for filing the return on the verge of completion of the period of due date after monitoring E-filing portal so that the last date rush of filing the return may be avoided. However, in the facts and circumstances of the case, the respondent no. 2 - CBDT ought to have extended the "due date" as a consequence of extending the "specified date" as per Explanation (ii) to Section 44AB of the Act, being one month prior to the due date of filing of the return of income. 24. In the aforesaid circumstances, and having regard to the provisions of Explanation (ii) of Section 44AB of the Act, we direct the respondent no. 2 CBDT to issue Circular exercising power under sections 119 of the Act to extend the "due date" of filing of return up to 30th November,2025 for the assessees who are required to file audit report as per clause (a) of Explanation 2 to sub-section (1) of section 139 of the Act or req....