Gujarat University Startup and Entrepreneurship Council GUSEC Vs ITO (ITAT Ahmedabad)
The Income Tax Appellate Tribunal (ITAT) of Ahmedabad has addressed the appeal of the Gujarat University Startup and Entrepreneurship Council (GUSEC) against an order from the Income Tax Officer (ITO). The central issue revolved around the disallowance of a tax exemption claimed by GUSEC due to the late submission of its audit report, Form 10B.
Background of the Case
GUSEC, a trust, filed its income tax return for the assessment year 2023-24, declaring a nil income. The claim for nil income was predicated on the accumulation or setting apart of up to 15% of its income, a provision under the Income Tax Act for charitable trusts. This claim, however, is contingent on the timely submission of a mandatory audit report, Form 10B. The due date for filing the return was November 30, 2023, which also serves as the deadline for filing the associated Form 10B.
The Centralized Processing Centre (CPC) in Bengaluru, during the processing of the return, raised a demand for Rs. 4,49,350 and disallowed the claimed expenditure. This action was based on the fact that GUSEC had filed its Form 10B on December 30, 2023, one month after the statutory deadline. GUSEC appealed the decision to the Commissioner of Income Tax (Appeals), or CIT(A). The CIT(A) upheld the CPC’s decision, stating that trusts are obligated to file Form 10B within the prescribed time limit.
