THE INCOME TAX BAR, JALANDHAR
Central Revenue Building, Model Town Road, Jalandhar.
(Correspondence Address:- 158/2, GTB Nagar, Opposite Mata Gujri Park, Jalandhar 144 001)
CA.Jatinder Bhatia Adv.Gulshan Kataria
Contact Nos:- 98142-18476 Contact Nos:- 94170-46036
Email:- email@example.com Email:- firstname.lastname@example.org
17th September, 2023
Smt.Nirmala Sitharaman Ji,
Minister of Finance, North Block, Government of India,
New Delhi 110 001.
Most Respectfully showeth, Sir,
in connection with deferment or extension of filing/uploading of Form(s) No.
10B/10BB notified vide Notification No.G.S.R.118E dated 21st February, 2023.
The Income Bar Association, Jalandhar is a premier and
distinguished bar association comprising of
distinguished Chartered Accountants, Advocates, Company
Secretaries, Income Tax Practitioners etc. as its members for the past many
years. Our association has significantly
contributed in the direct and indirect tax stream(s)
through the medium of epoch contribution of our worthy members
for over a considerable period of time. Our association has produced legal luminaries including judicial officers, prominent writer(s), esteemed speakers, famed intellectuals and
renowned professionals on the tax side.
Respectfully we submit for your kind consideration
that in the recent past significant amendments have been incorporated in the area of taxation
of charitable trust/educational/religious associations and institutions which has created a number of issues
besides practical difficulties both on the legal and compliance side for the
professionals, trust(s), institutions concerned
specially keeping in view the time constraints attached
to its filing i.e. 10B/10BB by due date under the Income Tax law. This also consequentially follows filing of Form No.ITR- 7 by such trust(s),
institutions or associations which are availing
the concessions of tax exemptions under the law.
No doubt that such Non-profitable organisations have
played a crucial role in the upliftment of society as a whole but the
compliance burden attached to the same has somewhere
down the line undermined the role of such institutions when
introspected and evaluated in terms of the gigantic and enormous
responsibility, accountability and transparency attached to the same under the
law. One of the conditions stipulated for availing exemptions under section 11
and 12 is a requirement of auditing accounts of the such non-profitable institutions under section 12A(1)(b). On a similar
note, the tenth proviso to
section 10(23C) requires the institutions approved under the said
clause to get the accounts audited.
a) Introduction of audit reports in form No.10B/10BB vide Notification No.7/2023 dated 21st February, 2023.
Two types of audit reports i.e. Form No.10B which is
applicable for section 12AB registered trusts and Form No.10BB which is
applicable for section 10(23C) approved entities have
been notified vide Notification No.7/2023 dated 21st February, 2023 the schema in respect of which
has been recently enabled by the department for e-filing on the department s dedicated portal. Form No.10B as notified incorporates in total 49
clauses with separate schedules i.e.
about 29 appended thereto in principle.
Form No.10BB as notified contains 32 clauses with about 6 schedules appended and made available for filing by the department.
Practically it is cumbersome and laborious to incorporate details in
each and every clause besides schedule appended thereto
which has since caused a lot of resentment and
dissatisfaction amongst lot of professionals on a pan India basis. The
trust(s), institutions or associations are also required
to File form No.9/10A by the stipulated time for which due date was extended from 31st August, 2023 to 31st October, 2023 vide Circular No.6 of 2023 dated 24th May, 2023.
b) Introduction of utility/schema for efiling of audit reports
notified in Form No.10B/10BB by the department.
The audit report Form No.10B/Form No.10BB has been
enabled very recently by the department on the efiling
website of the department. Even the procedure of assigning a Chartered Accountant has been enabled on the very 06th September, 2023 with the said audit report forms notified in the first week
of September, 2023 itself. The said exercise has unduly extended and enlarged time required for uploading of such forms besides consuming resources on a wide scale. That professionals such as Chartered Accountants, Advocates, Income
Tax Professionals etc. have to comply with aforesaid procedures besides
complying with audit requirements postulated by section 44AB of the Income Tax Act, 1961 failing which assessee s will be subjected to harsh penalities including prosecution(s) on various counts that
follow arising as a result of
defaults committed for no lapse on the part of either taxpayers fraternity or
the professionals as a whole. In furtherance thereof, income based criteria has
been notified with respect to such trust(s), associations or institutions in
whose case the total income without giving effect to the provisions of section
11 and 12 or section 10(23C) (iv), (v), (vi), (via)
is upto Rs.5 crores or exceeding Rs.5 crores
or whether such trust(s), institutions or associations has received any foreign
contribution or not or whether such institutions or associations has applied any part of income in India or outside India.
Calibration of utility/schema for efiling of
audit reports notified in Form No.10B/10BB by the third party software vendors.
That the professionals on a pan India basis utilize the services of third
party software vendors to make due compliances with the audit related requirements. Such third party software vendors are facing compelling circumstances in calibrating the department s utility/schema enabled for filing of
Form(s) with the functionalities notified in case of audit report bearing
No.10B/10BB which is resulting into unnecessary inconvenience
and causing massive burden both for the taxpayers fraternity
at large besides professionals on a wide scale.
d) Resultant consequences of delay in uploading/filing of audit report forms
The Income Tax law provides severe
penal consequences in case the audit report Form(s) No.10B/10BB are not filed by due date notified
in this regard. The said act may also result in disallowing exemptions granted to the institutions/associations which are entitled to claim such
tax exemptions as per registrations granted to them. It will result in unwanted litigation(s) and will cause
enormous dent in the entire filing process which needs to be taken care of at
the very outset by the department.
e) Humble prayer in light of the circumstances enunciated above.
The above said circumstances
without any thought require your immediate attention and we in due consequence
thereof humbly pray that the filing/uploading of audit report form No.10B/10BB
be deferred and be made
effective from the current financial year to conclude on 31st March, 2024 relevant to assessment year 2024-25.
However in case your goodself fails to find favour with the above noted
circumstances enunciated for your kind consideration, then it is prayed that the due dates of filing such audit forms i.e. Form
No.10B/10BB be extended from the present date i.e. 30th September,
2023 to 31st January, 2024, filing of ITR-7 be also extended from the
present date i.e. 31st October, 2023 to 29th February, 2024 and filing of Form No.9A/10 be
also extended from the present date 31st October, 2023 to 31st March, 2024.
It is also prayed that in consequence of the
tax-exemptions provided to such trust(s), associations
or institutions, the above said deferred filing will in any case not impact the tax collections/base of the nation and will certainly ease the compliance burden for various
stakeholders interested on a wide scale. Furthermore in cases of delayed filing of Form No.9A/10/10B/10BB, due immunity be extended
to the professionals, tax-payers and/or various stakeholders and no harsh consequences be pressed into service at least for the assessment year 2023-24. Lenient, moderate and
merciful view be taken in the interest of justice,
equity and fair-play.
Thanking you, Yours sincerely,
For the Income Tax Bar, Jalandhar
Member (Academic Committee)
Hon ble Prime Minister of
India, South Block, New
2) The Hon ble
Minister of State
for Finance, South
2)The Chairman, CBDT,
North Block, New Delhi 110 001 3)Electronic/Press media.