Charitable exemption cannot be denied when Form 10B is filed within the extended due date, despite being after the return.

Exemption under sections 11 and 12 cannot be denied merely because Form 10B was filed after the return, where the audit report was submitted within the extended due date permitted by the competent authority. On those facts, the filing requirement under section 12A was treated as complied with within time, and there was no occasion for condonation of delay. The adjustment made in processing under section 143(1) was therefore incorrect, and the denial of charitable exemption on the ground of late filing alone was unsustainable.

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Issues: Whether exemption under sections 11 and 12 could be denied merely because Form 10B was filed after the return but within the extended due date, and whether such filing amounted to non-compliance with section 12A.

Analysis: The assessee filed the return of income for the relevant assessment year and filed the audit report in Form 10B on the next day, but within the due date extended by the CBDT circular. The filing requirement under section 12A was therefore satisfied within the extended time permitted by law. In these circumstances, there was no delay requiring condonation, and the denial of exemption merely because the audit report was not filed along with the return was unsustainable. The processing adjustment made under section 143(1) was accordingly incorrect.

Conclusion: Exemption under sections 11 and 12 could not be denied, and the assessee succeeded on the issue.

Final Conclusion: The assessment adjustment was deleted and relief was directed to be granted to the assessee.

Ratio Decidendi: Where the audit report required for charitable exemption is filed within the extended due date prescribed by the competent authority, the filing condition under section 12A stands complied with and exemption under sections 11 and 12 cannot be denied on the ground of delay.

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