#Audit Compliance

The ITAT Delhi has ruled that denying tax exemption under Section 11 due to non-filing of Form 10B is legally unsustainable when a charitable trust's total receipts are below Rs.5 crores. This sets a critical precedent for small trusts navigating audit compliance, affirming that statutory exemptions cannot be contingent on unnecessary procedural formalities.

CESTAT Kolkata rules that residential construction projects with fewer than 12 units are exempt from service tax under the Finance Act, 1994. The tribunal quashed the demand, holding that reliance solely on ST-3 form and bank statement comparisons without substantive evidence lacks legal basis, setting a precedent for audit compliance challenges.

Bombay High Court rules that disqualification of co-operative society office-bearers under Section 82(4) of the Maharashtra Co-operative Societies Act mandates proof of actual audit irregularities, not just failure to submit a rectification report. The judgment clarifies that audit reports must explicitly identify defects or lapses to trigger statutory compliance obligations.