Exemption cannot be denied merely on account of delay in furnishing Audit Report

Last updated: 25 May 2021

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The Gujarat High Court has ruled that a public charitable trust should not be denied tax exemption under Section 12 of the Income Tax Act simply because its audit report was filed late. The court found that the trust met all other conditions for exemption and that the delay in filing the audit report, due to an administrative oversight, should have been condoned. The High Court quashed the order rejecting the exemption, emphasising that such delays should be viewed with a balanced and judicious approach, especially when genuine hardship is demonstrated.

Court :
Gujarat HC

Brief :
The Hon'ble Gujarat High Court in Trust For Reaching The Unreached Through Trustee v/s CIT [R/Special Civil Application No. 8977, 9370, 9760 of 2020 dated December 22, 2020] quashed and set aside the order rejecting the application for condonation of delay filed for exemption and held that an assessee being a public charitable trust who satisfied all the conditions to claim exemption under Section 12 of the Income Tax Act, 1961 ('IT Act') could not be denied exemption merely on account of delay in furnishing the Audit Report.

Citation :
R/Special Civil Application No. 8977, 9370, 9760 of 2020 dated December 22, 2020

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1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

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4999

(Excl. of GST ₹899)

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Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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