The Chartered Accountants Association of Surat (CAAS) has once again knocked on the doors of the Gujarat High Court, filing a fresh writ petition under Article 226 of the Constitution against the Central Board of Direct Taxes (CBDT). The new petition—filed through Advocate Dr. Avinash Poddar—raises serious concerns about persistent breakdowns in the Income-tax Department’s e-filing portal and chronic delays in the release of statutory forms and utilities for Assessment Year (AY) 2025–26.
According to CAAS, the latest petition arises from a “fresh cause of action” because the systemic issues that burden taxpayers and professionals remain unresolved, despite repeated judicial interventions and promises of improvement by CBDT.
The present filing builds on grievances previously raised in Writ Petition Nos. 13589/2025, 13533/2025, and 13582/2025. These matters were disposed of by the High Court on 13 October 2025, but only after dealing with the narrower question of extending due dates.
CAAS argues that core concerns—including portal malfunctions, delayed utilities, audit-time challenges, and unintended interest liabilities—were never adjudicated, thereby warranting a fresh petition.
One of the primary issues highlighted is the significant delay by CBDT in notifying and releasing Income Tax Return (ITR) forms and corresponding utilities for AY 2025–26.
Tables placed on pages 5–8 of the petition show that:
- Several utilities were released months after the beginning of the assessment year.
- Multiple versions of utilities were issued on a trial-and-error basis, creating further confusion.
- As a result, audit professionals effectively had less than 15 working days before the 30 September tax audit deadline.
The petition further notes that schema releases for third-party software developers were also delayed, causing a cascading effect on compliance for chartered accountants and tax practitioners.
The Association has documented severe portal disruptions between 10–16 September 2025, supported with screenshots, evidentiary logs, and individual grievance filings.
As per the petition:
- Taxpayers were unable to log in, upload returns, generate challans, or complete e-verification.
- The failures peaked on 15 September, coinciding with the last date for filing non-audit ITRs and paying the second installment of advance tax.
- Several taxpayers, including one petitioner, Vipasha Mehul Shah, were unable to pay advance tax despite having arranged funds and attempting payment before midnight.
- Pages 16–17 detail multiple applications seeking waiver of consequential interest under Section 234C owing to the technical breakdown.
CAAS has strongly objected to the rise in “Category-A validations”—strict pre-filing checks that prevent users from uploading returns if errors are detected.
The petition cites data (page 21) showing:
- Category-A validations jumped dramatically from 32% to 204% across five assessment years.
The Association argues that these validations are “ultra vires”, lack statutory backing, and effectively deny taxpayers the right to file returns by blocking uploads entirely.
The petition invokes violations of:
- Article 14 (equality before law)
- Article 19(1)(g) (right to practice profession)
- Article 21 (right to life, including ease of doing business in digital governance)
- Article 265 (no tax shall be levied or collected except by authority of law)
CAAS submits that the cumulative failures constitute a “continuing wrong,” thus generating a fresh cause of action warranting judicial scrutiny.
Reliefs and Directions Sought
The Association has sought wide-ranging remedies to ensure structural reforms in tax administration. Key prayers include:
- Mandatory Release of All ITR Forms and Utilities by 1 April Each Year
To ensure adequate time for taxpayers and professionals. - Restriction of Pre-Filing Validations
Limiting validations to only basic checks so that returns can be uploaded first, with defects handled later through Section 139(9) notices. - Automatic Waiver of Interest, Penalties, and Late Fees
Particularly in situations where non-compliance results from technical glitches or delayed utility releases. - Creation of an Independent Technical Monitoring Committee
Comprising ICAI representatives, technology experts, NIC, and industry bodies to oversee the portal. - Disciplinary Action Against Responsible Officials or Vendors
For repeated lapses or systemic inefficiencies. - Suspension/Waiver of Interest and Late Fees for 10–16 September 2025
The period during which portal outages made compliance impossible.
Legal Representation
The petitioners will be represented before the Gujarat High Court by Dr. Avinash Poddar and Ms. Anchal Avinash Poddar of Ashva Legal Advisors LLP.
