CBDT vide Circular No. 19/2020 dated 03-11-2020 issued under section 119(2)(b) condoned the delay in filing of the audit report in Form 10BB applicable to entities viz. by trusts, institutions, universities and hospitals who claim tax exemption under section 10(23C). The delay in filing of the audit report has been condoned for AY 2016-17 and AY 2017-18. It also empowers CIT to condone the delay of up to 365 days for AY 2018-19 and onwards.
Any funds, trusts, institutions including educational and medical universities or hospitals claiming income tax exemption will have to get their accounts audited if their total income of that year exceeds the maximum amount not chargeable to tax. To claim such an exemption under section 10(23C), an Audit Report in Form 10BB is required to be filed by such trust or institution.
In case of a trust or institution registered under section 11, the prescribed audit report is Form 10B.
The circular states that the Board has received representations from various organizations that they were unable to file their return along with an audit report for AY 2016-17 and AY 2017-18 and to condone the same in order to claim benefit and to avoid litigation.
The Board while considering their plea, has issued this circular under section 119(2)(b) on November 3 for condonation of delay for filing Form 10BB.
In this regard, the Board has issued the following directions for providing the relief to such institutes for expediting the process to dispose of such condonation applications-
Read the full text of the Circular No. 19/2020 dated 03.11.2020 on Condonation of Delay in filing of Audit Report Form 10BB for Section 10(23C) Institutions
Circular No. 19/2020
F.No.197/135/2020-ITA-I
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, the 3rd November, 2020
Sub: Condonation of delay under section 119(2)(b) of the Income-tax Act, 1961 in filing of Form No. 10BB for Assessment Year 2016-17 and subsequent years – Reg.
Under the provisions of section 10(23C) of Income-tax Act, 1961 (hereafter ‘ Act’) where the total income, of the fund or trust or institution or any university or other educational institution or any hospital or other medical institution referred to in sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via), without giving effect to the provisions of the said subclauses, exceeds the maximum amount which is not chargeable to tax in any previous year, such trust or institution or any university or other educational institution or any hospital or other medical institution shall get its accounts audited in respect of that year by an accountant as defined in the Explanation below sub-section (2) of section 288 before the specified date referred to in section 44AB and furnish by that date, the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed.
2. As per Rule 16CC of the Income-tax Rules, 1962 (hereafter ‘ Rules’) the audit report of the accounts of such a fund or trust or institution or any university or other educational institution or any hospital or other medical institution is to be furnished in Form No. 10BB. 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 results in disentitlement of such entity from claiming exemption under section 10(23C) of the Act.
3. Representations have been received by the Board/field authorities stating that Form No. 10BB could not be filed along with the return of income for AY 2016-17 and AY 2017-18. It has been requested that the delay in filing of Form No 10BB may be condoned.
4. Accordingly, with a view to expedite the disposal of applications filed by such entities for condoning the delay and in exercise of the powers conferred under section 119(2) (b) of the Act, the Central Board of Direct Taxes hereby directs that:
(i) In all the cases of belated applications in filing of Form No. 10BB for years prior to AY. 2018-19, the Commissioners of Income-tax are authorized to admit such applications for condonation of delay uls 119(2)(b) of the Act. The Commissioner will while entertaining such applications regarding filing Form No. 10BB shall satisfy themselves that the applicant was prevented by reasonable cause from filing such application within the stipulated time. Further, all such applications shall be disposed of by 31.03.2021.
(ii) where there is delay of upto 365 days in filing Form No. 10BB for Assessment Year 2018-19 or for any subsequent Assessment Years, the Commissioners of Income-tax are hereby authorized to admit such belated applications of condonation of delay under section 119(2) of the Income-tax Act, 1961 and decide on merits.
5. The Commissioners of Income-tax shall, while entertaining such belated applications in filing Form No. 10BB, satisfy themselves that the applicant was prevented by reasonable cause from filing such application within the stipulated time.
(Prajna Paramita)
Director (ITA-I)
 Institutions from AY 2016-17){kind=link}
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