Judicial Powers vs. Statutory Deadlines: Can High Courts Extend Due Dates under Income Tax
Although courts realize difficulties, they let the executive side make the final decision. It is true that the CBDT has frequently extended deadlines in order to balance administration and equity. Thus, we can expect a positive decision from the board.
Judicial Powers - Statutory Deadlines - Can High Courts - Due Dates - Income Tax - taxscan
Judicial Powers - Statutory Deadlines - Can High Courts - Due Dates - Income Tax - taxscan
The income tax system in India is organized around tough statutory deadlines. While the Central Board of Direct Taxes ( CBDT ) notifies statutory due dates, petitioners frequently approach High Courts demanding extensions citing hardships such as technical glitches, pandemics, or compliance issues.
The important legal question is that Do High Courts have the judicial authority to extend statutory deadlines for ITR filing, or are such powers exclusively vested with the executive under the Income-tax Act, 1961?
Appeal Smart: Master Income Tax Appeals with AI, Click here
The simple answer is ‘NO’. The power to fix and extend dues is with the executives. The court can take up the deadline cases and direct the board or government to extend the deadline. However, the high court, independently, cannot extend the due date.
Income Tax Standard Due Dates
The due dates for filing income tax returns are not arbitrary. They are provided under Section 139(1) of the Income-tax Act, 1961, which stipulates:
- 31st July: For individuals and entities not subject to tax audit.
- 30th September : Deadline to submit Tax audit Report
- 31st October: For taxpayers requiring audit under the Act or under any other law.
- 30th November: For entities required to furnish transfer pricing reports.
The CBDT, empowered under Section 119(2)(a), has the discretion to extend these due dates if it considers it necessary to provide relief to taxpayers.
Over the years, especially during the COVID-19 pandemic, the CBDT regularly exercised this power to extend timelines for filing returns, tax audit reports, and other compliance submissions.
Judicial Review vs. Administrative Discretion
The Constitution of India provides High Courts with writ jurisdiction under Article 226, and the Supreme Court under Article 32 to ensure protection of fundamental rights and judicial review of executive action.
However, when it comes to statutory deadlines prescribed under fiscal legislation such as the Income-tax Act, the judiciary generally refrains from direct intervention.
The Courts recognise that fixing and extending deadlines is primarily a matter of legislative and executive policy. Judicial interference is therefore limited to exceptional situations, such as when there is manifest arbitrariness in the manner executive discretion is exercised.
Also, when statutory deadlines operate in a manner that results in the violation of fundamental rights like equality under Article 14 or the freedom to carry on trade or business under Article 19, or when the executive fails to exercise its discretion to grant relief in extraordinary circumstances where equity and justice demand flexibility.
Appeal Smart: Master Income Tax Appeals with AI, Click here
Judicial Decisions
In the cases of All Gujarat Federation of Tax Consultants v. CBDT, 2015, Chamber of Tax Consultants v. CBDT, 2015, the high courts have clarified that they cannot interfere with the statutory deadlines. However, the courts maintained to issue directions to the department or government regarding the extensions.
In the above referred cases, the high courts have clearly directed the CBDT to consider the pleas of the stakeholders and extend the due date.
Importance in the Present Scenario
The CBDT extended the due date of the incometax returns without audit to 15th September 2025 due to the initial delays in the utilities. Later, due to the technical glitches, it was granted one more day to file the returns without any fine.
Coming to the next stage, the returns requiring audit should be filed within 31st October 2025 and audits should be submitted by 30th September 2025. There are no notification issues presently regarding the extension of the submission of the Tax audit report as there are few days left. Thus, many accounting professional associations have continuously pressed the ministry of finance for the extension, however, there is no response until now.
Presently, the professionals have approached the Rajasthan High Court, in which the court has directed the board to extend the due date of the Tax Audit Report submission. Though the ruling applies to the specific state, it is expected that the CBDT may issue an extension notification for the whole nation.
Although courts realize difficulties, they let the executive side make the final decision. It is true that the CBDT has frequently extended deadlines in order to balance administration and equity. Thus, we can expect a positive decision from the board.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
