Whether filing of audit report in Form No.  10B is compulssory at the time of filing income tax return of trust or it can be furnished afterwards?

Opinion:

It is advisable that the the audit report should accompany with the the return itself. Rather, with the e-filing procedure, it is better if the audit report is uploaded first and then the return of trust is filed.

A charitable trust is entitled to claim exemption from income-tax, even if the audit report is submitted before completion of assessment or in course of appellate proceedings.

Taxpayer may Refer

1.  CIT vs. Hardeodas Agarwala Trust (1992) 198 ITR 511 (Cal).

2  CIT vs. Shahzedanand Charity Trust – (1997) 228 ITR 292 (PH),

3.  CIT vs. Devradhan Madhavallal Genda Trust – (1998) 230 ITR 714(MP).

4. The Supreme Court in the case of CIT vs. Nagpur Hotel Owners’ Association 247 ITR 201, inferred that the audit report cannot be filed after the assessment is completed.