The Central Board of Direct Taxes (CBDT) granted condonation of delay in filing of Form 10BB by Trusts and Institutions like educational and medical universities or hospitals  for the Assessment Year 2016-17 and the subsequent years.

The Board received various Representations stating that Form No. 10BB could not be filed along with the return of income for Assessment Year 2016-17 and Assessment Year 2017-18. It has been requested that the delay in filing of Form No 10BB may be condoned.

The CBDT with a view to expedite the disposal of applications filed by such entities for condoning the delay and in exercise of the powers conferred under section 119(2) (b) of the Act, the Board issued directions.

Firstly, the Board directed that  in all the cases of belated applications in filing of Form No. 10BB for years prior to Assessment Year 2018-19, the Commissioners of Income-tax are authorized to admit such applications for condonation of delay under section 119(2)(b) of the Act. The Commissioner will while entertaining such applications regarding filing Form No. 10BB shall satisfy themselves that the applicant was prevented by reasonable cause from filing such application within the stipulated time.

Further, all such applications shall be disposed of by March 31, 2021.

Secondly, the Board directed where there is delay of up to 365 days in filing Form No. 10BB for Assessment Year 2018-19 or for any subsequent Assessment Years, the Commissioners of Income tax are authorized to admit such belated applications of condonation of delay under section 119(2) of the Income-tax Act, 1961 and decide on merits.

Under the provisions of section 10(23C) of Income-tax Act, 1961 where the total income, of the fund or trust or institution or any university or other educational institution or any hospital or other medical institution exceeds the maximum amount which is not chargeable to tax in any previous year shall get its accounts audited in respect of that year by an accountant before the specified date.

According to Rule 16CC of the Income-tax Rules, 1962 the audit report of the accounts of such a fund or trust or institution or any university or other educational institution or any hospital or other medical institution is to be furnished in Form No. 10BB.

As per Rule 12(2) of the Rules, such an audit report is to be furnished electronically. The failure to furnish such report in the prescribed form along with the return results in disentitlement of such entity from claiming exemption under section 10(230) of the Act.

“The Commissioners of Income-tax shall, while entertaining such belated applications in filing Form No. 10BB, satisfy themselves that the applicant was prevented by reasonable cause from filing such application within the stipulated time,” the CBDT Circular said.