CBDT vide Circular No.19/2022 in F.No. 225/49/2022/ITA-II dated 30.09.2022 had extended the last date for filing various audit reports for AY 2022-23 to 7th Oct 2022 which was earlier 30th Sep 2022. The said extension was also applicable to charitable organizations with respect to audit report in Form No.10B.
If the assessee has not filed the audit report till 7th Oct 2022 then an application u/ s 119 ( 2 )( b) can be filed before the Commissioner of Income Tax (Exemption) praying for condoning the delay in filing Form No.10B. CBDT vide various circulars have directed the officers to condone the delay in filing the audit report for assessment years till 2021-22 on showing sufficient cause. Even circular is issued extending the date for filing audit report for AY 2023-24, however no circular is available extending the date for AY 2022-23.
Various High Courts have taken the view that filing of audit report along with return is not mandatory but directory; it was a sufficient compliance of section 12A(b) if the same is filed during the course of assessment proceeding. Kindly see
CIT vs Andhra Pradesh State Road Transport Corporation (2006) 285 ITR 147 (AP)(HC)
CIT vs DevradhanMadhav Lal Genda Trust (1998) 230 ITR 714 (MP)(HC)
In certain cases, it is held that the scope of power of the Appellate Authority is coterminous and coextensive with that of the Assessing Officer. The audit report can be filed even before the appellate proceeding. Kindly see the following cases:-
CIT vs Hardeo Das Agarwalla Trust 1992) 198 ITR 511 (Cal)(HC)
DIT(E) vs Sindhi Panchayat (2002) 258 ITR 259 (Del)(HC)
CBDT had issued an Instruction No.1/1148 dated 09.02.1978 to the effect that where for reasons beyond the control of the assessee, some delay has occurred in filing the said report, exemption available to such Trust u/s 11 & 12 may not be denied merely on account of delay in furnishing the auditors report and the ITO should record reasons for accepting a belated audit report.
Infact, assessee has to file an application u/s 119(2)(b) of the Income Tax Act before the CIT(E) praying for condoning the delay in filing the audit report. Even the writ petition will not be admitted by the High Court if such application u/s 119(2)(b) is not made by the assessee or is not decided by CIT(E). It is only on rejection of application by CIT(E) that the writ petition before the High Court would be maintainable.