Exemption u/s 11 denied - Trust failed to e-file Audit Report in...

Exemption u/s 11 denied - Trust failed to e-file Audit Report in Form 10BB before filing return of income - application for condonation of delay rejected u/s 119(2)(b). Assessee argued delay less than 365 days excluding COVID period, hence petition should have been filed before CIT(Exemption), not DGIT(Inv.). CBDT circular ambiguous on condonation process beyond 3 years. ITAT opined authorities should have taken lenient view on belated filing when conditions otherwise satisfied. Matter remanded to AO for fresh consideration after CBDT decision on condonation application. On assessment of gross receipts as income, ITAT held once exemption lost, income assessable as AOP and only surplus/profits taxable, not gross receipts. AO directed to assess income/profits, not gross receipts, if exemption finally denied.

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