Section 11 exemption cannot be denied for delayed Form 10B filing when the audit report was already on record before processing.

Exemption under Section 11 could not be denied merely because Form 10B was not filed by the original due date where the return was filed within the extended due date under Circular No. 20/2022 and the audit report was already uploaded and available on record before processing under Section 143(1). On those facts, treating the report as unavailable at the time of intimation was not a valid basis to disallow the claim, and the exemption claim had to be examined on merits in accordance with law.

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Issues: Whether exemption under Section 11 could be denied merely because Form 10B was not filed before the original due date, when the audit report was uploaded along with the return filed within the extended due date and was already on record before processing under Section 143(1).

Analysis: The return was filed within the extended due date notified by Circular No. 20/2022, and the audit report in Form 10B was available with the return before the intimation was issued. In these circumstances, the failure to treat the audit report as available on record at the time of processing was not a valid basis to disallow the claim for exemption. Following the coordinate Bench decision on the same issue, the claim was required to be examined on merits in accordance with law.

Conclusion: The assessee could not be denied exemption under Section 11 solely for this procedural reason, and the claim was directed to be considered afresh as per law.

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