CBDT extends due date of CIT to dispose off belated Applications in Filing of Form 10B [Read Circular]

The Central Board of Direct Taxes ( CBDT ) has extended date for CIT to disposing off belated applications in the filing of Audit Report ( Form 10B ) to 31st March 2020 from September 30th.

As per Circular No. 10, dated 22-5-2019, the Commissioners of Income-tax are authorized to admit applications for condonation of delay in filing Form No. 10B for years prior to AY 2018-19 and are required to dispose off same by 30-9-2019.

Under the provisions of Section 12A of Income Tax Act, 1961 where the total income of a trust or institution as computed under the Act without giving effect to the provisions of section 1 1 and section 12 exceeds the maximum amount which is not chargeable to income-tax in any previous year, the accounts of the trust or institution for that year have to be audited by an accountant is required to furnish along with the return of income for the relevant assessment year the report of such audit in the prescribed form duly signed and verified by such accountant.

As per Rule 17B of the Income-tax Rules, 1962 the audit report of the accounts of such a trust or institution is to be furnished in Form no. 1013. As per Rule 12(2) of the Rules, such audit report is to be furnished electronically. The failure to furnish such report in the prescribed form along with the return of income results in disentitlement of the trust from claiming an exemption under sections 11 and 12 of the Act.

The delay in filing of Form no. 1013 for AY 2016 17 and AY 2017-18, in all such cases where the Audit Report for the previous year has been obtained before the filing of return of income and, has been furnished subsequent to the filing of the return of income but before the date specified under section 139 of the Act is condoned. In all other cases of belated applications in filing Form no.1013 for years prior to AY 2018-19, the Commissioners of Income-tax are authorized to admit such applications for condonation of delay u/s 119(2)(b) of the Act. The Commissioners will while entertaining such belated applications in filing Form no.1013 shall satisfy themselves that the assessee was prevented by reasonable cause from filing such application within the stipulated time.