Delay condonation for Form 10 granted where affidavit evidence and inadvertent e filing omission established reasonable cause.

Delay of 523 days in filing Form No. 10 for claiming accumulation under section 11(2) was held excusable because the petitioner furnished a contemporaneous explanation and a Chartered Accountant's affidavit that the form was signed in paper by trustees and omission to file electronically was inadvertent; the delay was condoned under the administrative power to excuse procedural lapses on showing reasonable cause, and denial would unduly prejudice the charitable trust's entitlement to exemption. The order refusing condonation was quashed and the delay was regularised in favour of the assessee.

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Issues: Whether the delay of 523 days in filing Form No. 10 for Assessment Year 2016-17 should be condoned so as to allow the petitioner trust to claim exemption/accumulation under section 11(2) of the Income-tax Act, 1961.

Analysis: The Court examined the explanation offered for the delay, including the affidavit of the petitioner's Chartered Accountant which avers that Form No. 10 was signed in paper format by the trustees at a meeting held on 29th September, 2016 and that the omission to file the form electronically was inadvertent. The Court considered the statutory context of section 11(2) regarding accumulation of income for charitable trusts and the power under section 119(2)(b) to condone delays, assessing whether a "reasonable cause" for the delay had been shown. The Court also weighed the hardship that would be caused to the charitable trust if the delay were not excused and the exemption denied solely due to the Chartered Accountant's inadvertent omission.

Conclusion: The Court held that the petitioner's explanation, supported by the Chartered Accountant's affidavit, constituted sufficient cause to condone the delay. The impugned order dated 18th June, 2025 refusing condonation under section 119(2)(b) is quashed and the delay in filing Form No. 10 is condoned in favour of the assessee.

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