The Central Board Direct Taxes ( CBDT ) has condoned delay in filing of Audit Report (Form 10 B) by Trust / Institutions for the Assessment Years 2016-17 and 2017-18.
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 Circular issued by the CBDT has said that, Accordingly, in supersession of earlier Circular/ Instruction issued in this regard, and with a view to expediting the disposal of applications filed by such trusts or institutions for condoning the delay in filing Form no. 1013 and in the exercise of the powers conferred under section 119(2) of the Act, the Central l3oard of Direct Taxes hereby directs that:
