| Question And Answer | |
|---|---|
| Subject: | exemption u/s 11 |
| Category: | Income-Tax |
| Querist: | Lokesh |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | charitable trust, delay in filing audit report, Exemption |
| Date: | September 13, 2022 |
Sir,
A NPO registered u/s 12A filed return of income for AY 2020-21 belatedly though tax audit report was filed within due date. Exemption was denied u/s 143(1) by CPC, kindly elucidate follow up action to be taken.
This is a common issue faced by a lot of assessees. Filing an appeal will not condone the delay in filing Form 10B.
The CBDT had issued a Circular No. 2 of 2020 dated January 3, 2020, wherein it empowered the Ld. CIT(E) to condone a delay in filing of Form 10B up to a period of 356 days for AY 2018-19 & onwards, inter alia.
The Hon’ble Bombay High Court in the case of Little Angels Education Society v. UOI [2021] 434 ITR 423 (Bom)(HC) held that where Form No. 10B was filed by assessee after lapse of more than 365 days of due date of filing of return of income, application for condonation of delay was to be rejected, however, having regard to mandate of section 119(2)(b) of the Act, assessee may approach CBDT, seeking a special order to Commissioner (Exemptions), to condone delay in filing Form No. 10B and thereafter to deal with said claim on merits in accordance with law.
The Assessee may act accordingly