Delayed Form 10B filing is a curable procedural defect where charitable exemption conditions are otherwise satisfied.

Delayed filing of Form 10B does not by itself defeat a charitable trust's exemption where the audit report is furnished with the return and the delay is bona fide. The notes describe Form 10B filing as a procedural requirement, with delay caused by confusion over revised filing requirements and a technical certificate error later rectified. Such delay is treated as a curable defect where statutory conditions for exemption are otherwise met. The stated conclusion is that the delay was condoned and exemption under Section 11 remained available in accordance with law.

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Issues: Whether a charitable trust can be denied exemption for delayed furnishing of the audit report in Form 10B.

Analysis: The audit report was furnished with the return, although 24 days beyond the prescribed time. The delay arose from confusion concerning the revised filing requirement and a technical error in the certificate, subsequently rectified. Filing Form 10B is a procedural requirement, and a bona fide delay in its filing is a curable defect; exemption should not be denied solely on limitation where the trust otherwise satisfies the statutory conditions.

Conclusion: The delay in filing Form 10B was condoned and the assessee was entitled to exemption under Section 11 in accordance with law.

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