SECTION 12A, READ WITH SECTION 119 OF THE INCOME TAX ACT, 1961 – CHARITABLE OR RELIGIOUS TRUST – REGISTRATION OF – CONDONATION OF DELAY IN FILING OF FORM NO. 10B FOR YEARS PRIOR TO ASSESSMENT YEAR 2018-19
Under the provisions of section 12A of Income-tax Act, 1961 (hereafter ‘Act’) whenever the total income of a trust or institution as calculated under the Act without considering the provisions of section 11 and 12 exceeds the maximum amount and is not chargeable to Income-tax in any previous year, the accounts of the trust/ institution for that year will be audited by an accountant as defined in the sub-section (2), below, of section 288. The person in receipt of the income is required to come up with the return of income for the relevant assessment year. The report of this audit in the form will be signed and verified by such accountant and setting forth such particulars as may be prescribed.
As per Rule 17B of the Income-tax Rules, 1962 (hereafter ‘Rules’) the audit report of the accounts of such a trust or institution is to be furnished in Form No. 10B. As per Rule 12(2) of the Rules, such audit report is to be furnished electronically. If one fails to give such report in the prescribed form along with the return of income will result in ceasing the right of the trust from claiming an exemption under sections 11 and 12 of the Act.
Representations have been received by the Board/field authorities stating that Form No. 10B could not be filed along with the return of income for AY 2016 17 and AY 2017-18. It has been requested that the delay in filing of Form No. 10B may be condoned. Previously, video instruction in F.NO. 267/482/77-IT(part), dated 9-2-1978, the CBDT had authorized the ITO to accept a belated audit report after recording reasons in cases where some delay has occurred for reasons beyond the control of the assessee.
In supersession of earlier Circular/Instruction issued in this regard, and with a view to accelerate the disposal of applications filed by such trusts or institutions for condoning the delay in filing Form No. 10B and in exercise of the powers conferred under section 119(2) of the Act, the Central Board of Direct Taxes hereby directs that;
- The delay in filing of Form No. 10B for AY 2016 17 and AY 2017-18, in all such cases where whenever the audit report for the previous year was got before the filing of return of income and was given after the filing of the return of income but before the date specified under section 139 of the Act is condoned.
- Whenever there is a case of belated applications in filing Form No. 10B for years before to AY 2018-19, the Commissioners of Income-tax are authorized to admit applications for condonation of delay under section 119(2)(b) of the Act. The Commissioners will entertain such belated applications in filing Form No. 10B. They will also satisfy themselves that the assessee was prevented by reasonable cause from filing such application within the stipulated time. Further, all such applications shall be disposed of by 30-9-2019.