Income Tax Audit Due Date Extension: Punjab & Haryana HC Directs Dept. Counsel to Seek CBDT Instructions within 4 Days

The Punjab and Haryana High Court has admitted a writ petition seeking extension of the due date for income tax audit for the financial year 2024-25, in light of the mounting pressure experienced by tax professionals and businesses as the 30 September deadline nears.

The case, filed as CWP-28440-2025 (Ashwini Kumar v. Central Board of Direct Taxes and Another), was instituted on 19 September 2025 and listed as urgent before the High Court at Chandigarh. Chartered Accountant Ram Bajaj (@rambajajgst), had on 19 September, 2025 posted on X that they had filed the writ before the Punjab and Haryana High Court.

As per the case status on the High Court website, the petition has been filed under Category 6.77 – Income Tax Act 1961 Haryana (Direct) and has been filed from Sonepat district. The petitioner, Ashwini Kumar is represented by Divya Arora.

The matter was listed before a division bench of Justice Lisa Gill and Justice Ramesh Kumari on 22 September 2025.

As per information shared by CA Himank Singla (@CAHimankSingla) on X, the Division Bench directed the Income Tax Department Counsel to obtain instructions and directions from the CBDT by 26 September 2025, in effect, giving the department a four-day timeline to place their stance on the matter. The High Court noted that if instructions were not received, it would pass appropriate orders. The matter remains pending, with the outcome now hinging on CBDT’s response.

The litigation reflects wider concerns raised by tax and audit professionals.

On 11 September 2025, the Central India Regional Council (CIRC) of the Institute of Chartered Accountants of India (ICAI) had addressed Finance Minister Nirmala Sitharaman, seeking an extension of the tax audit deadline from 30 September to 31 December 2025.

The CIRC flagged overlapping compliance requirements during July-October, persistent technical bottlenecks on the Income Tax e-filing portal which has often been overridden with glitches and workflow pressures faced by firms while struggling to catch up to the deadlines amidst all the challenges.

On 18 September 2025, ICAI indicated it was preparing a representation to CBDT over portal glitches that have hampered audit filings. Users reported login failures, delays in uploads, and errors in acknowledgments, all of which have reduced the effective working window following the government’s decision to extend non-audit ITR deadlines.

The issue was reiterated on 19 September 2025, when ICAI formally wrote to CBDT Chairman Ravi Agrawal, highlighting that while non-audit ITR deadlines were extended to 15 September, no relief was provided for audit cases. ICAI contended that this disturbed the statutory intent of leaving a two-month gap between audit and return filing deadlines to ease filing pressures.

Amidst mounting pressure on social media and direct representations made by statutory bodies, the Punjab and Haryana High Court’s intervention has put pressure on the CBDT to provide clarity on its intent regarding the date extension.

With the Bench granting a four-day window to return with instructions, tax professionals shall certainly be waiting with bated breath to heave a sigh of relief - given the due date is extended. Any relief will have significant implications for auditors and taxpayers struggling to complete statutory audits amidst system glitches and overlapping compliance deadlines.

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