Rajasthan High Court Steps in for Tax Audit Deadline Extension
The Rajasthan High Court in Jodhpur has ordered the CBDT to extend the deadline for filing tax audit reports to October 31. This decision comes after a lawsuit highlighted the impracticality of the current deadline, with only a small fraction of reports filed so far.
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In a notable development, the Jodhpur bench of the Rajasthan High Court has directed the Central Board of Direct Taxes (CBDT) to extend the tax audit report filing deadline to October 31. This interim order responds to a Public Interest Litigation (PIL) filed by the Jodhpur Tax Bar Association, which criticized the flaws in the Income Tax portal.
The court order was issued after a division bench considered the challenges faced by large firms, trusts, and traders required to file audit reports by September 30. With approximately 40 lakh audit reports typically submitted nationwide, only about 4 lakh have been filed as of September 23, underscoring the pressing need for deadline extension.
Petitioner Ajay Soni, president of the association, emphasized the impracticality of the statutory due date, given recent changes and technical issues. Highlighting the ongoing festive season, Soni argued that traders are unable to focus on business, demanding either deadline extension or permission for physical filing. The case is set for another hearing on October 27.
(With inputs from agencies.)
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