Late Filing of Audit Report Leads to Disallowance of S.11 Exemption: ITAT Directs Re-Adjudication

The ITAT directed the re-adjudication of a case where late filing of an audit report led to the disallowance of Section 11 exemption. In this case, the taxpayer, a charitable institution, was denied the exemption due to the delayed submission of the audit report. The tribunal emphasized that while the delay in filing was unfortunate, it did not negate the institution’s eligibility for the exemption. The case was remitted to the lower authorities for a fresh adjudication, underscoring the need for a balanced approach when dealing with procedural lapses that do not affect the substantive claim.