Tax Bar Associations of Bhilwara & Jodhpur regarding extension of the due date for Tax Audit Reports (TARs) u/s 44AB
Summary: The Tax Bar Associations of Bhilwara and Jodhpur petitioned the Rajasthan High Court seeking an extension of the due date for filing Tax Audit Reports (TARs) under Section 44AB for AY 2025-26 beyond 30 September 2025, citing delayed release of audit utilities and persistent e-filing portal glitches. The petitioners highlighted that unlike the previous year, the utilities were made available only on 18 July 2025, and version updates further reduced effective filing time. Widespread portal issues—including login failures, DSC registration errors, OTP delays, AIS/TIS mismatches with Form 26AS, and non-functioning upload buttons—created significant compliance burdens. Filing statistics showed only 2.73 lakh TARs submitted by 23 September 2025 compared to 29.38 lakh the prior year, demonstrating systemic disruption. Petitioners urged that no penalties be imposed and manual or email submissions be allowed if portal problems persisted. CBDT counsel argued that the statutory due date was known, the portal was operational, and filing trends were comparable to previous years. Observing the drastic fall in submissions and confirming the technical difficulties as genuine and widespread, the Court invoked CBDT’s powers under Section 119 to grant relief. Consequently, the Rajasthan High Court extended the TAR filing deadline to 31 October 2025 and directed prompt resolution of portal glitches, noting the complexity and volume of audit reports warranted additional time.
Read: Rajasthan HC Extends Tax Audit Report Deadline to 31st October 2025 (Read Order)
Relief sought:
Extension of due date for filing TARs (Forms 3CA-3CD/3CB-3CD) for AY 2025-26 beyond 30.09.2025, citing technical glitches on the e-filing portal and late release of utilities. Petitioners also sought a direction that no penalty/late fee be imposed and taxpayers be permitted manual/e-mail submissions if portal issues persist.
Petitioners’ Arguments
1. Utilities Released Late:
- Unlike AY 2024-25, where utilities were available by April, in AY 2025-26 audit utilities were released only on 18.07.2025, leaving compressed timelines.
- Version updates further reduced the effective time available for uploading TARs.
2. Glitches on Portal:
- Login failures, DSC registration errors, OTP delays, rejection of new assessee registrations.
- AIS/TIS mismatches with Form 26AS, causing reconciliation burden.
- Non-functionality of “Audit Report Upload” button, denial of service due to heavy traffic, inability to use Form 29B for MAT cases.
- Grievances closed without resolution & rectification requests pending.
3.Filing Statistics:
- For AY 2025-26, by 23.09.2025 only 2.73 lakh TARs filed, compared to 29.38 lakh TARs by the same date in AY 2024-25.
- Shows severe shortfall, demonstrating system issues.
4.Principle of Fairness:
- Department bound by the Taxpayer’s Charter to ensure impartiality & support compliance.
- Delay in utility release has disturbed the legislatively intended staggered timelines between ITR & TAR filing.
Respondents’ Counter – CBDT Counsel:
- Due date (30.09.2025) is statutory & well-known.
- Utilities became operational by 14.08.2025 and are functioning.
- Filing numbers are increasing close to the due date (similar trend in AY 2024-25).
- Over 2.73 lakh TARs already filed successfully, showing portal is robust.
- A 24/7 helpline is active; isolated grievances do not warrant extension.
- A one-day extension was already granted for ITR filing on 15.09.2025 due to peak logins, but TAR filings have not shown such systemic disruption.
Court’s Observations
1. Comparison of Filing Trends:
- AY 2024-25 had 29.38 lakh TARs filed before due date (30.09.2024).
- AY 2025-26 had only 2.73 lakh TARs filed by 23.09.2025 — a drastic fall.
- Indicates systemic risk & disruption, not isolated issues.
2.Technical Difficulties Genuine:
- Delayed release of utilities compressed statutory gaps (meant to ease compliance).
- Persistent portal failures (login, DSC, OTP, reconciliation) confirmed.
- AIS/TIS mismatches causing hardship.
- Court found these issues widespread & recurring, not isolated.
3.CBDT’s Power u/s 119:
- CBDT has powers to relax provisions in genuine hardship cases.
- Precedents exist where courts intervened when forms/utilities were delayed.
Court’s Interim Direction
- Due date for filing TARs for AY 2025-26 extended from 30.09.2025 to 31.10.2025.
- CBDT directed to fix portal glitches expeditiously.
- Court noted that TARs are more complex & voluminous than ITRs, justifying extra time.
- Matter listed for 27.10.2025 for further hearing
Rajasthan High Court has granted a one-month extension (till 31.10.2025) for filing Tax Audit Reports u/s 44AB due to late release of audit utilities & persistent e-filing glitches, holding that taxpayer hardships & drastically reduced filings indicate systemic disruption.
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