Delay in Filing Form 10B Does Not Bar Exemption under Sections 11 & 12 of ITA: ITAT

The Income Tax Appellate Tribunal (ITAT) has ruled that a delay in filing Form 10B does not automatically bar a charitable trust from claiming tax exemption under Sections 11 and 12 of the Income Tax Act. Form 10B is an audit report that is required to be filed by charitable trusts. The ITAT took a lenient and pragmatic view, holding that the requirement to file this form is a procedural one, not a mandatory condition for claiming the exemption itself. The tribunal observed that if the trust has a valid reason for the delay and files the form before the completion of the assessment, the exemption should not be denied. This ruling is a major relief for charitable organizations, as it ensures that their substantive right to tax exemption is not defeated by minor procedural delays, as long as there is overall compliance.