Charitable exemption cannot be denied for a typographical error in Form 9A where the statutory option was otherwise exercised.

Exemption under sections 11 and 12 could not be denied merely because Form 9A contained an inadvertent zero entry where the return, Form 10B and Form 9A were otherwise filed within time and the records showed that the option under clause (2) of Explanation 2 to section 11(1) had in substance been exercised. The mistake was treated as a technical, computational and typographical defect, and the exemption claim was not to be rejected on that basis. The addition made while processing the return under section 143(1) was therefore deleted, and the Revenue's challenge failed.

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Issues: Whether the Revenue was justified in sustaining the addition made while processing the return under section 143(1) of the Income-tax Act, 1961, by denying exemption under sections 11 and 12 on account of delay and an inadvertent error in filing Form 9A.

Analysis: The assessee had filed the return of income, Form 10B and Form 9A within the stipulated time, and the records reflected exercise of the option under clause (2) of Explanation 2 to section 11(1). The incorrect entry of zero in Form 9A was treated as an inadvertent computational and typographical mistake. The filing of Form 10B and the surrounding material showed that the statutory option had in substance been exercised, and the denial of exemption was based only on technical defects.

Conclusion: The addition was rightly deleted and the denial of exemption was not sustainable; the Revenue's appeal failed.

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