Provisions U/s 12A(b) of the Income-tax Act, 1961. - Income Tax - 1148/CBDT

INSTRUCTION NO. 1148/CBDT Dated : February 9, 1978 Section(s) Referred: 12A(b) Statute: Income - Tax Act, 1961 Under section 12A(b) of the Income-tax Act, 1961, in the case of a charitable or religious trust or institution whose total income without giving effect to the provisions of section 11 and 12 of the Income-tax Act, 1961 exceeds twenty-five thousand rupees in any previous year, the accounts of the trust or institutions should be audited by an accountant as defined in the Explanation below sub-section (2) of section 288 and the person in receipt of the income should furnish along with the return of income for the relevant assessment year the report in Form 10B duly signed and verified by such accountant. 2. The Board have had occasion to consider whether the requirement of filing audit report "along with the return of income" is mandatory so as to disentitle the trust from claiming exemption under section 11 and 12 in case of omission of furnishing such report in the prescribed form along with the return. Normally it should be possible for a trust to file the auditor's report along with the return of income. However, in cases where for reasons beyond the control of the assessee some delay has occurred in filing the said report, the exemption as available to such trust under section 11 and section 12 may not be denied merely on account of delay in furnishing the auditor's report, and the ITO should report reasons for accepting a belated audit report.