Bombay High Court Allows Condonation of 24-Day Delay in Filing Form 10B, Restores Section 11 Exemption

 

Mirae Asset Foundation vs. PCIT-6, Mumbai

Citation: TS-893-HC-2025(BOM)

Facts:

1.  The assessee, Mirae Asset Foundation, a charitable trust, filed Form 10B (audit report) 24 days late.

2.  The delay in filing the condonation application itself was around 9 months.

3.  The PCIT rejected the condonation request, citing both the delay in filing Form 10B and delay in seeking condonation.

4.  Further, the Revenue contended that the Form 10B was not digitally signed, making it invalid.

High Court Ruling:

1.  The Court held that a 24-day delay in filing Form 10B should not result in denial of Section 11 exemption, especially where the amount involved is substantial.

2.  Citing the Gujarat HC ruling in Sarvodaya Charitable Trust [(2021) 125 taxmann 75], the Court emphasized that revenue authorities should adopt a judicious and balancing approach when considering condonation, especially for long-standing charitable organizations.

3.  The Court found the Revenue’s objection regarding the lack of digital signature to be factually incorrect. The Form 10B was digitally signed and had an acknowledgment number (326816870110322).

4. The Court referred to earlier precedent (Gujarat Oil and Allied Industries Ltd. – 201 ITR 325), affirming that furnishing the audit report is a procedural requirement, and substantial compliance should suffice.

Final Outcome:

1.  The order refusing condonation was quashed.

2.  Delay of 24 days in filing Form 10B was condoned.

3.  Section 11 exemption claim was restored.