Trust Audit Report Form 10B

Dear Sir,
I have read your replies and deeply respect your knowledge and opinions.  

Sir, in my particular case, a 12A Regd Educational Institution filed its returns ITR7 & 10B for FY 2015-16 late.  The school had gross receipts of Rs. 10 lakhs and Expenditure of 12 Laks (approx) i.e. deficit of Rs. 2 Laks.   However, CPC issued Order U/s 143(1) and demand notice @ 30% plus interest on entire 10 Lakhs ! Sir even if benefit of 12A is not allowed due to late filing, can CPC tax the entire gross receipts ? (consisting School Fees Interest Income and Grants from Govt) Will 100% of the expenses be disallowed ? What can be a remedy ? 154 online or CIT(A) against 143(1) of CPC ? Is our contention tenable ? Please guide and advise what grounds of appeal / course of action to adopt.

Thanking you in Advance and With due regards
 

Hello Sir, 

I am facing a similar issue. 

Communication of proposed adjustment u/s 143(1)(a) of Income Tax Act, 1961.

"As per Section-12A(1)(b) of Income tax
Act read with 1st Proviso to Rule 12(2) of
the Income Tax Rules, where the total
income of the trust or institution without
giving effect to the provisions of section
11 and section 12 exceeds the maximum
amount which is not chargeable to income
tax, the audit report in Form-10B has to be
E-filed along with the return of income.
Since assessee has not E-filed the Audit
Report in Form 10B along with or before
filing of the Return of income, the
exemption u/s-11 .i.e. sr.no 1 & Sl. No. 4i
to 4viii in Schedule Part B-TI is not
allowed."

This is what I recd from the IT dept. Should i file a revised return of 10B along with revised ITR7. Will that suffice the case? 

Dear Sir,

I am working with charitable trust and we filed form 10B offline for FY 2016-17 and FY 2017-18 with local assessing office before filing the return. But IT department issued demand notice to pay 30% amount on accumulated for next five years. The reason shown to pay to demand by department that the form 10B is filled offline instead of online. 

Please suggest how to handle or any previous judgements related to this.

Satyanarayana

Trust which is not registered u/s 12AA has to file ITR-5, further there is no audit provision for such trust under income tax act

No.

Audit is applicable if Charitable income before allowing deduction u/s 11 exceeds maximum amount which is not chargeable to tax i.e. Rs 250000.00. In your case , even gross income i.e. donation Rs 96000 is within exemption limit.