Condonation of delay in filing income tax return & form 10B of the trust

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Krishna (Querist)
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29 March 2024 For AY 2019-20 charitable trust return is filed after due date & also report not filed in form 10B. Therefore cpc does not allow exemption u/s 11 & calculate tax on gross receipts. Now can we file condonation request for delay in filing income tax return with CIT (Exemptions)? & condonation for delay in filing form 10B with CBDT to get exemption u/s 11 ?. How to submit the condonation request with CBDT ??
Please reply.
Thanks in advance.

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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06 July 2024 To address the situation where the charitable trust's income tax return for AY 2019-20 was filed late and Form 10B was not filed, resulting in the denial of exemption under section 11 and taxation on gross receipts, you can proceed with the following steps:

### Condonation of Delay for Filing Income Tax Return

1. **Condonation Request with CIT (Exemptions)**:
- Prepare a condonation request explaining the reasons for the delay in filing the income tax return beyond the due date. Include details such as any unforeseen circumstances or valid reasons that led to the delay.
- Gather supporting documents that substantiate the reasons cited in your request (e.g., correspondence, legal documents, financial records, etc.).
- Submit the condonation request along with the supporting documents to the CIT (Exemptions) of your jurisdiction. This can typically be done through a written application addressed to the CIT (Exemptions) office.

### Condonation of Delay for Filing Form 10B

2. **Condonation Request with CBDT**:
- For the delay in filing Form 10B, prepare a separate condonation request.
- Clearly explain the reasons for the delay in filing Form 10B and provide any relevant supporting documents.
- The condonation request for Form 10B typically needs to be addressed to the Central Board of Direct Taxes (CBDT) or the jurisdictional Principal Commissioner of Income Tax (Exemptions).

### Steps to Submit Condonation Requests:

- **Format**: Ensure that both condonation requests are drafted clearly and concisely, detailing the reasons for delay and attaching all necessary supporting documents.

- **Submission**: Submit the requests in physical or electronic form as per the guidelines provided by the respective authorities. Physical submissions should include a cover letter addressed to the relevant authority.

- **Acknowledgment**: Upon submission, obtain an acknowledgment or receipt from the receiving authority as proof of submission.

### Additional Considerations:

- **Legal Assistance**: If needed, seek assistance from a tax consultant or legal professional specializing in income tax matters to ensure the condonation requests are appropriately drafted and submitted.

- **Follow-up**: After submission, monitor the progress of your requests. Follow any additional instructions or queries from the authorities promptly.

By following these steps diligently and providing comprehensive explanations and documentation, you enhance the chances of the condonation requests being accepted, thereby allowing the trust to avail of exemption under section 11 for AY 2019-20 and rectify the taxation on gross receipts issue.