ITR-7 Trust Disallowance of expenditure

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This discussion addresses an ITR-7 filing where the CPC disallowed expenditure, taxing it on gross receipts. The user is seeking options to clear the resulting demand, including rectifying the issue and appealing the decision. Advice suggests applying for condonation of delay in filing Form 10B with the CIT-Exemption, potentially filing manually if online options fail, and then contacting the AO. Filing an appeal alongside the ITR and Form 10B is also recommended.

Subhash

Subhash (Querist)

20 May 2022 I had filed ITR -7 for AY 2020-21 on 27-01-2021 (due date was 15-02-2021) and also filed Audit Report in Form 10B on 27-01-2021 (Due date was 15-01-2021).

The CPC had disallowed expenditure claimed (revenue and capital) and taxed @ 30% on Gross Receipts.

Rectification request to reprocess was also processed with demand due?

What is the course available to clear the demand ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

21 May 2022 Go for appeal...........

Subhash

Subhash (Querist)

21 May 2022 Thank you sir.

Also please tell me, whether i should pray for condonation for late filing of Audit report Form 10B in Appeal, or any thing else should also be mentioned in the grounds of appeal ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

21 May 2022 The assessee can file an application for condonation of delay in filing form 10B before the CIT -Exemption, and get the relief from tax demands raised by the assessing officer/CPC.

Subhash

Subhash (Querist)

21 May 2022 Thank You Sir,

But rectification rights are with CPC only so AO can not help in this matter, unless file is transferred to him by CPC.

What is the procedure to file an application for condonation of delay in filing Form 10B before CIT_Exemption at Efiling portal ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

21 May 2022 Try filing it manually if not possible in online filing.
After condonation contact AO no file transfer is required it's online.
see the link.
https://taxguru.in/income-tax/cbdt-condones-delay-filing-form-no-10b.html

https://ngoenabler.com/news/condonation-for-delay-in-filing-form-10b/

https://www.taxwink.com/blog/condonation-delay-filing-form-10b

https://legalitysimplified.com/2019/06/26/condonation-of-delay-in-filing-form-no-10b/

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

21 May 2022 Also file appeal as 10b filed with ITR.

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