Recently, the tax fraternity has faced considerable challenges due to the non-extension of the due date for tax audits under section 44AB. More specifically, after the due date for filing returns not requiring audit (16.09.2025) had lapsed we were left with merely two weeks’ time to complete the hefty task of auditing the books of account and uploading the tax audit report. To add to the difficulty of completing the task within a short span of time, we were also facing the challenges of glitches in the income tax portal. However, as we all know, to our relief, the specified date u/s 44AB has been extended vide Circular No. 14 / 2025 dated 25.09.2025.
Now, despite the extension of the specified date u/s 44AB, the question that arises before the tax professionals is what about the due date to file the return of income u/s 139 in such cases. To date, the Board has not extended the said due date. In this write-up, the author has dealt with the jurisdictional validity of the Circular, which the Board has issued to extend the specified date u/s 44AB without extending the due date u/s 139(1) of the Act.
Before referring to the discussion on the issue, it would be apposite to reproduce relevant sections for ready reference. The content of the Circular issued by the Board is reproduced as follows:
“The Central Board of Direct Taxes (CBDT), in exercise of its powers under Section 119 of the Income-tax Act,1961 (the Act) hereby extends the ‘specified date’ for the assessees referred in clause (a) of Explanation 2 to sub-section (1) of section 139 of the Act for furnishing of report of audit under any provisions of the Act for the Financial Year 2024-25 (relevant Assessment Year 2025-26) from 30th September, 2025 to 31st October, 2025.”
The Board has exercised its powers u/s 119 of the Act to extend the ‘specified date’. The term ‘specified date’ is used in section 44AB of the Act. Therefore, the relevant provisions of section 44AB are reproduced as follows:
“ 44AB.
Explanation.—For the purposes of this section,—
………………..
(ii) “specified date”, in relation to the accounts of the assessee of the previous year relevant to an assessment year, means date one month prior to the due date for furnishing the return of income under sub-section (1) of section 139.”
From the aforesaid Explanation, it is crystal clear that due date u/s 44AB is directly linked to due date u/s 139(1) as applicable to an assessee. Further, Explanation 2 to section 139(1) defines the due date as 31st October of the assessment year.
Since, the Board has relied on provisions of section 119 of the Act to issue aforesaid Circular, the relevant provisions of section 119 is reproduced as follows:
“119……………………….
(2) Without prejudice to the generality of the foregoing power,—
(a) the Board may, if it considers it necessary or expedient so to do, for the purpose of proper and efficient management of the work of assessment and collection of revenue, issue, from time to time (whether by way of relaxation of any of the provisions of sections 115P, 115S, 115WD, 115WE, 115WF, 115WG, 115WH, 115WJ, 115WK, 139, 143, 144, 147, 148, 154, 155, 158BFA, sub-section (1A) of section 201, sections 210, 211, 234A, 234B, 234C, 234E, 234F, 270A, 271, 271C, 271CA and 273 or otherwise), general or special orders in respect of any class of incomes or fringe benefits or class of cases, setting forth directions or instructions (not being prejudicial to assessees) as to the guidelines, principles or procedures to be followed by other income-tax authorities in the work relating to assessment or collection of revenue or the initiation of proceedings for the imposition of penalties and any such order may, if the Board is of opinion that it is necessary in the public interest so to do, be published and circulated in the prescribed manner for general information;
…………………..………..”
(emphasis supplied)
A plain reading of the above provisions suggests that section 119 does not empower any authority including board to alter the ‘specified date’. Only Parliament can amend the provisions of section 44AB. Whereas, section 119 provides an authority to the Board to provide relaxation to the provisions of section 139 of the Act.
Reverting back to the present Circular issued by the Board wherein the ‘specified date’ u/s 44AB has been extended without extending the due date u/s 139 of the Act, in authors opinion such extension of ‘specified date’ ultra vires the provision of Income – tax Act and therefore it is without jurisdiction. Since the ‘specified date’ of section 44AB is ‘date one month prior to the due date for furnishing the return of income u/s 139(1) of the Act.’ Therefore, the specified date u/s 44AB cannot be an isolated extension without extension of due date u/s 139(1).
This interpretation is supported by the judgment of the Hon’ble Gujarat High Court in All Gujarat Federation of Tax Consultants v. CBDT – [SCA No. 12571 & 12656 of 2014, Order dated 22.09.2014] wherein in Para 76 it was held as follows:
“78. Under sub-section (2) of section 119 of the Act, the legislature had enumerated the sections, the provisions whereof the Board is empowered to relax, however, section 44AB of the Act does not find place therein. It is, therefore, clear that section 119 of the Act does not empower the Board to relax the provisions of section 44AB of the Act. Thus, prima facie, the exercise of powers under section 119 of the Act for extending the due date for obtaining and furnishing of report of audit under section 44AB of the Act is without any authority of law……………………………”
Hence, if at all the Board wanted to extend the due date of obtaining and furnishing of tax audit report u/s 44AB, it could have been done so only by way of extending due date u/s 139(1). The only extension to the ‘specified date’ u/s 44AB is invalid.
Unless the Board also extends the due date under section 139(1), the Circular may be vulnerable to judicial review, and the courts may take a stricter view by striking it down the said Circular and issuing fresh direction towards extension of the due date.
Further, just to address the lot of queries received regarding whether the aforesaid extension of specified date u/s 44AB also extends the due date to file Form 10B (for Trusts) and Form 10CCB (for claiming deduction u/s Chapter VI – B). Accordingly, the extension of the specified date under section 44AB also applies to filing of Form 10B (for trusts) and Form 10CCB (for claiming deductions under Chapter VI-B), both of which now stand extended to 31st October 2025.
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