Ved Jain & Associates’ Post

CBDT issues Circular allowing Condonation of Delay in Filing various Forms/ Audit reports for Charitable Trusts and Institutions The circular applies to forms such as Form 9A, Form 10, Form 10B, and Form 10BB for AY 2018-19 and subsequent years. 1.Form 9A is required to be filed by charitable trusts or institutions for claiming exemption in respect of income that could-not be applied for charitable purposes in the current assessment year but will be applied in the subsequent year under Section 11(1) Explanation. 2.Form 10 is required to be filed for accumulating income for a period of five years under Section 11(2) when 85% of thecurrent year income could not be applied-during the year for charitable purposes. 3.Form 10B is an audit report required to be filed by charitable trusts or institutions whose income without claiming exemption exceeded ₹5 crore or which receivedcontributions under the Foreign Contribution Regulation Act (FCRA). 4.Form 10BB is an audit report required to be filed by all charitable trusts or institutions whose income exceeds the-maximum amount not chargeable to tax before claiming exemption under Section 11 and Section 12of the Act. This circular applies to delays in filing the above forms/audit reports for the AY 2018-19 and onwards only. Further applications for condonation can be made for a delay of up to 3 years from the end of the relevant AY. This will mean that these forms/audit report cannot be filed now for AY 2018-19, AY 2019-20, AY 2020-21 as a period of 3 years from the end of the AY has already elapsed. However, this time limit of 3 years applies to applications filed on or after the issuance of this circular. Accordingly, where the relevant form in respect of AY 2018-19, AY 2019-20, AY 2020-21 has already been filed before the date of this circular i.e. 18.11.2024, the same will still be eligible for condonation of delay without the ceiling of 3 years. However, where any of these forms have not been filed so far, then the same can be filed only if it falls within the period of 3 years from the due date of filing of such form. i.e. AY 2021-22, AY 2022-23, AY 2023-24 & AY 2024-25. For Delays Up to 365 Days (1 Year) the application for condonation of delay is to be made to the PCIT/CIT and for Delays Beyond 365 Days (More Than 1 Year) the application for condonation is to be made to PCCIT/CCIT The condonation of delay is not automatic. The PCCIT/ PCIT while allowing condonation must be satisfied that the applicant was prevented by reasonable cause from filing the relevant form/ audit report and the case is of genuine hardship on merits. Hence it will be important to draft the application carefully so as to provide adequate justification for the delay and also demonstrate that the case is of genuine hardship. This circular is going to address the hardship of many NGO’s whereby huge demand has been created just because of technical default in filing such forms.