CBDT condones delay in filing of audit report by trust/institution for AYs 2016-17 & 2017-18

total income, without giving effect to the provisions of section 11 and section 12, exceeds maximum amount which is not chargeable to tax in any previous year.

The failure to furnish such report in the prescribed form along with the return of income results in disentitlement of the trust from claiming exemption under sections 11 and 12.

The Central Board of Direct Taxes (CBDT) had been receiving several applications from trusts & institutions requesting condonation of delay for filing of audit report in Form no. 10B for Assessment Years 2016-17 & 2017-18.

With a view to expedite the disposal of applications filed by such trusts or institutions for condoning the delay, the CBDT has directed that:

a) The delay shall be condoned in case where the audit report has been obtained before filing of ROI & has been furnished subsequent to filing of return of income but before the date specified in Section 139.

b) In all other cases of belated applications, the CIT shall satisfy himself about fact that the assessee was prevented by reasonable cause from filing such application in stipulated time. All such applications are to be disposed off by 30/09/2019.