2025 (9) TMI 1139

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....2)(b) of the Income Tax Act, 1961 (for short "the Act"), rejecting the Petitioner's application dated 8th March 2023 filed on 16th March 2023 seeking a condonation of delay of 84 days in filing Form No. 10B. Consequently, the exemption claimed by the Petitioner under Section 11 of the Act has been denied to the Petitioner, which is a Charitable Trust. 3. The Petitioner is a Charitable Trust established exclusively for medical purposes and is registered as a Public Charitable Trust under the provisions of the Maharashtra Public Trusts Act, 1950, with the office of the Charity Commissioner, Greater Mumbai, vide PTR No. F-124 (Bom) dated 21st May 1953. Since then, it has been regularly filing its Return of Income and complying with the othe....

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..... 2022-23, was completed under Section 143(1) of the Act disallowing the exemption under Section 11 claimed by the Petitioner. 6. Since there was a delay in filing Form No. 10B, the Petitioner filed an application on 16th March 2023 before Respondent No. 1 seeking a condonation of delay in filing the said Form. It was submitted that the Petitioner could upload the audit report only by 30th December 2022, i.e. 84 days after the due date. The Petitioner could not file the said Form No. 10B in due time as the former accountant of the Petitioner, who handled the accounts and accounting matters, had left the job during the second Covid wave in 2021. The Petitioner appointed a part-time accountant, who also left the job, and they managed to ap....

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....entional default on the part of the Petitioner. The fact that the former accountant of the Petitioner, who handled the accounts and accounting matters, had left the job during the second Covid wave in 2021 and the Petitioner appointed a part-time accountant, who also left the job, and they managed to appoint a new permanent accountant only in March 2022, is also not disputed by Respondent No. 1. The evidence filed in support thereof is also not doubted by Respondent No. 1. The delay was caused on account of change in accountants, who were responsible for maintaining the financial records and co-ordinating the preparation for filing the audit report, as stated above. This failure was beyond the Petitioner's control and not due to any wilful ....

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....there was only 84 days delay in filing Form No. 10B. However, we find that this delay is not such that it should deny the Petitioner from filing Form No. 10B. We find that if this delay is not condoned, there will be genuine hardship to the Petitioner, inasmuch as, the Petitioner would be denied the exemption otherwise claimed under the provisions of Section 11 of the Act, and which is a substantial amount. 13. We are of the view that Respondent No. 1 ought to have taken a justice-oriented approach rather than a pedantic one, and condoned the delay. We also find that in similar facts, this Court in the case of Mirae Asset Foundation (supra), Sau Dwarkabai tai Karwa Charitable Trust (supra) and Kotak Family Foundation (supra) has taken a ....