Belated Form 10B filing treated as a procedural lapse; exemption claim under sections 11 and 12 was protected.

Belated filing of Form 10B was treated as a procedural lapse that should not defeat a substantive exemption claim where the assessee trust had otherwise claimed relief under sections 11 and 12 and the delay was explained by pending rectification proceedings. Applying the principle that substantial justice prevails over technicality, the delay was condoned and the return was directed to be processed in line with the exemption claim. The stated rationale was that a procedural default should not deny substantive benefit when no deliberate neglect is established.

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Issues: Whether the delay in filing Form 10B could be condoned and the assessee trust be granted the benefit of exemption under sections 11 and 12.

Analysis: The assessee was a registered trust and had claimed exemption in the return, but Form 10B was filed belatedly. The delay in seeking relief was explained by the pendency of rectification proceedings and the subsequent application for condonation. The delay was treated as a technical lapse that should not defeat a substantive claim where the assessee was otherwise entitled to exemption. Reliance was placed on the principle that substantial justice prevails over technicality, and the belated filing of Form 10B was directed to be treated as within time for processing the return.

Conclusion: The delay in filing Form 10B was condoned and the assessee was held entitled to have the return processed in accordance with the exemption claimed under sections 11 and 12.

Ratio Decidendi: A belated compliance that is procedural in nature should not defeat a substantive exemption claim where the surrounding circumstances justify condonation and no deliberate neglect is established.

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