Trust Audit Report Form 10B

Trust having total income of Rs.2.50 lakh or more before claiming deductions u/s 11 should file audit report in Form No.10B.  This must be filed electronically.  Manual filing is not allowed.  Trust must add CA after log in into their PAN.  CA should upload Form No.10B online after log in into his PAN and then the Trust should approve it after log in into its PAN with DSC of Managing Trustee.   

The total income refers to is gross or net i.e income recieved after its application towards charity object .If net is less than 2.5 lac & gross recipts is more than 2.5 lac is 10b applicable??

Trust having total income of Rs.2.50 lakh or more before claiming deductions u/s 11 which is gross income only.

 

If return of trust filed in due date and audit report filed late, then can we claim exemption u/s 11??

Yes please.

Though Section 12A(1)(b) provides that the exemption u/s 11 will be available only if the accounts are audited and audit report “furnished along with the return”, the same is not mandatory but is directory. The audit report in Form 10B affirms the statements contained in the balance sheet and income-expenditure statement and is intended to enable the AO to allow the exemption by relying on the audit report and without having to ask the assessee to furnish supporting documents in support of the claim. Such a procedural provision cannot be construed as mandatory because the defect can be cured at a subsequent stage. It is not the intention of the Legislature that the exemption u/s 11 should be denied merely because the audit report was not filed with the return. CIT Vs. Hardeodas Agarwalla Trust 198 ITR 511 (Cal). You can file appeal to CIT(A).

Sir, Is there any specific form of Audit Report for a Public Trust which is not yet registered under section 12AA ?

Hi did u receive notice from CPC or Proposed adjustment under section 143(1)(a)?

Dear Sir

First of all CPC send me notice u/s 139(9) to be defective returns ans ask me to upload Audit Report in form 10B.

I uploaded the audit report and while CPC processing the return u/s 143(1) did not allowe me deduction u/s 11 of all exemption incrrued during the year and calculated tax liablity more than 50 Lakhs by reasing that audit report not file on time.Then I file rectification u/s 154 but this time also exemption not allowed with same reasons.

Now i planing to file appeal to CIT(A)

Plz help and provide me strong case laws to support my facts/case if possible.

Thanks

Refer CIT vs. Hardeodas Agarwala Trust (1992) 198 ITR 511 (Cal). CIT vs. Shahzedanand Charity Trust – (1997) 228 ITR 292 (PH), CIT vs. Devradhan Madhavallal Genda Trust – (1998) 230 ITR 714(MP) 

The Supreme Court in the case of CIT vs. Nagpur Hotel Owners’ Association 247 ITR 201, inferred that the audit report cannot be filed after the assessment is completed

Can u please share the copy of notice and demand