Do CAs have a case for demanding extension of Tax Audit and ITR dues date forget about a pen down strike?
Like any other occasion, demands are pitched by Chartered Accountants for extension of due dates for filing Tax Audit Report and ITR for AY 2025-26.
Even, the Institute of Chartered Accountants of India (ICAI) has also written a representation to the Finance Ministry/CBDT requesting a extension of due date. Various CA Associations have also represented the matter to the Government seeking the extension.
Interestingly, an appeal for pen down strike has been made by few. The main reason attributed to the need for the extension is less time available to chartered accountants for doing the quality audit.
Do CAs have any locus standi on extension?
However, but for public interest, do we as chartered accountants otherwise enjoy any locus standi in the matter for extension or non extension of due dates?
I personally believe that by doing the Tax audit u/s 44AB or ITR filing we act merely as facilitator and are not affected by the extension or non-extension, off course barring the public cause. Regarding tax audit reports filing, it is pertinent to note that currently, under Tax Laws, there is no penal consequence for a chartered accountant for late filing a tax audit report that would give him a locus standi.
No doubt, in case of fault or negligence by CA in filing/preparing a report/return, a civil suit can still be filed against him by the assessee client claiming compensation. But that would be a case of CA accepting work beyond his capacity or acting negligently and it could never be a case for extension of due dates.
The real problem would arise when the facilitator/auditor walks into the wrong shoes and commits to something which is apparently out of his capacity or the available time frame but would not you agree that it is always a personal choice which is often driven by unprofessional practices or considerations.
However, I am unable to understand that why every year, number of chartered accountants/other professionals would painstakingly discuss and foresee the ills of non-extension as if they are the ultimately sufferers. For the AY 2025-26, the issue of further extension of due dates to has already gone live among chartered accountants in person and social/professional groups.
Even few CAs are quick to post that they have information on extension from “confirmed sources “. Few CAs even making of mockery of themselves by posting itinerary of CBDT Chairman. Interestingly, everyone is trying to show off how well he/she is connected. I remember in 2017 one of such chartered accountant shared this post quoting it as anti CA. I can but feel pity for them.
It is true that due to breakdown of e-portal, and extension of due date of 31st July, CAs had less time for attending to Tax Audit work.. However, one thing very hard to understand is if the CAs are worried about the quality of audit in view of their time availability , why can’t they simply refuse to audit and write suitably to the client? Then perhaps the client shall find a CA who is not short of time or approach a Court of Law. By not doing that and instead asking for extension, if not the much hyped word “quality audit” in fact revolve around only the fear of loosing the clients? And it is interesting to see that despite asking extension till now in the name of quality would however all audits shall be done in just one remaining day.
Is there a truth in the perception that chartered accountants work under pressure and simply afraid of loosing clients?
If not, the chartered accountants by pleading extensions present a picture wherein they are painted as the one at the mercy of the Government despite the fact that ultimately, the concern turns out to be a public cause only and not their cross to bear.
Should CBDT allow Company Secretaries and Cost Accountants to conduct Tax Audits?
By demanding the extensions, CAs are infact signaling the Government that they are overloaded with Tax Audit Work and CBDT should consider accepting the demands of other Institutes to include Company Secretaries and Cost Accountants in the definition of “accountant” as per Income Tax Act.
If the Government is not likely to extend the date at its own, its only their call because it has two fold consequences, first loss to exchequer and secondly taking the wrath of the assessees. If the Government is willing to take on the consequences, why can not we stand tall as Men and what if it is the Government that writes to us to bail it out instead?
Despite fighting like a Knight, why it is always we that throw pride so easily by pleading to the Government?
CA Ashutosh Lohani
This post was originally published on 28/07/2015 but remains relevant now.
- Compound interest can not be awarded in arbitral award unless provided in MoU
- No DIN requirements for communications using CBIC’s eOffice application
- Do CAs have a case for demanding extension? forget about a pen down strike.
- CBDT waives demand for special rate tax for new tax regime up to 31.12.2025
- Rajasthan/Karnataka High Court extends tax audit due date to 31.10.2025.
