Late filing of Form 10B cannot by itself defeat section 11 exemption where entitlement remains verifiable.

Exemption under section 11 could not be denied solely because Form 10B was filed after the return due date, as belated filing of the audit report was treated as a directory compliance rather than a mandatory bar. The Tribunal held that where the assessee's underlying entitlement and relevant facts remained verifiable, late submission of Form 10B by itself did not defeat the claim. The denial of exemption on that ground was not sustained, and the assessment was to be recomputed after verification of the necessary facts.

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Issues: Whether exemption under section 11 could be denied solely because Form 10B was filed beyond the due date prescribed for filing the return.

Analysis: The assessee had claimed registration under section 12A and later uploaded the correct audit report in Form 10B along with an application under section 154 after the lower authorities had rejected relief. The Tribunal treated the filing of the audit report as a directory requirement and not a mandatory condition for denial of exemption, relying on the settled legal position that belated filing of the prescribed report by itself does not defeat the claim where the relevant facts can still be verified.

Conclusion: The denial of section 11 exemption solely on the ground of late filing of Form 10B was not sustained, and the issue was decided in favour of the assessee.

Final Conclusion: The assessee's claim for exemption was accepted in principle, and the Assessing Officer was left to recompute the matter after verification of the necessary facts.

Ratio Decidendi: Filing of the prescribed audit report is a directory compliance and not, by itself, a mandatory bar to exemption where the underlying entitlement can be verified.

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