Tax Audit Deadline Drama! CBDT Rushes to High Court Seeking Short Adjournments Amid Extension Petitions

Tax Audit Deadline Drama! CBDT Rushes to High Court Seeking Short Adjournments Amid Extension Petitions

The Deputy Secretary in the ITJ Section of the Central Board of Direct Taxes (CBDT), named Divya Chaudhary, has written an email to address the officials responsible for legal tax matters.

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The email is regarding Tax Audit Reports (TARs), a report that is filed by a certain group of taxpayers, like companies, under the Income Tax Act. These reports need to be filed on or before a specific statutory deadline (September 30, 2025, for the current financial year 2024-25). Recently, numerous tax professionals have filed writ petitions and public interest litigations (PILs) in the High Court, seeking a TAR due date extension. Petitioners approaching the high courts are asking for an immediate hearing on the matter of whether the due date should be extended.

Here in this mail, Divya Chaudhary is directing all standing counsels of CBDT to ask the court for a short adjournment. Meaning, postpone the hearing for some time (at least by one day).

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The reason for this request is that the matter is still under consideration by higher authorities in the CBDT. The CBDT wants some time to decide on its official position before responding in court. By seeking a short delay, the lawyers can ensure that the CBDT’s inputs and official views are properly communicated to the court before any decision is made.