The Rajasthan High Court issued a significant order extending the deadline for filing Tax Audit Reports under Section 44AB of the Income Tax Act, 1961, by one month beyond the original cutoff of September 30, 2025. A division bench comprising Justice (Dr.) Pushpendra Singh Bhati and Justice Bipin Gupta, in the case of Tax Bar Association, Bhilwara v. Union of India & Anr., granted the extension following arguments that the Central Board of Direct Taxes (CBDT) had arbitrarily denied a similar reprieve previously extended in comparable circumstances. The petitioners contended that this refusal violated Articles 14 (equality), 19(1)(g) (right to profession), and 21 (right to life and liberty) of the Constitution, arguing that the lack of extension imposed undue hardship on taxpayers and professionals.

The court was persuaded by submissions highlighting multiple challenges faced by assessees. Counsel pointed out the recent introduction of revised reporting formats for non-corporate entities, necessitating additional preparation time, and the persistent technical glitches on the Income Tax e-filing portal, which disrupted timely submissions. They argued that the combined effect of delayed forms, overlapping deadlines, procedural changes, and portal issues created an unjust burden, potentially leading to penalties, interest, and loss of carry-forward losses—consequences unfair to taxpayers not at fault. The bench agreed, noting that such conditions infringed on fundamental rights by hindering professional duties and personal liberties, and thus warranted judicial intervention.

By allowing the petition, the Rajasthan High Court extended the filing deadline to October 30, 2025, providing relief to taxpayers and tax professionals across the state. This decision aligns with past CBDT practices of granting extensions under similar constraints and sets a precedent for addressing systemic issues in tax compliance processes, ensuring fairness and accessibility in tax administration.

Case Details: Tax Bar Association, Bhilwara v. Union of India & Anr.