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

📍 Case: Mirae Asset Foundation vs. PCIT-6, Mumbai

📄 Citation: TS-893-HC-2025(BOM

1. Overview

• In a significant relief to charitable institutions, the Bombay High Court has ruled in favor of Mirae Asset Foundation, condoning a 24-day delay in filing Form 10B and thereby restoring its Section 11 income tax exemption.

2.Key Facts

• The assessee, Mirae Asset Foundation, filed Form 10B (audit report) 24 days late.

• The application for condonation was also filed after a delay of around 9 months.

• The Principal Commissioner of Income Tax (PCIT) rejected the condonation request citing both delays.

• The Revenue also objected, claiming the Form 10B was not digitally signed, rendering it invalid.

3. High Court's Ruling

1. The Court held that a minor 24-day delay should not lead to denial of Section 11 exemption, especially considering the substantial charitable work and sums involved.

2. Referring to Sarvodaya Charitable Trust [(2021) 125 taxmann 75], the Court emphasized a balanced and judicious approach in condonation matters involving genuine charitable entities.

3. The Revenue’s claim regarding the lack of digital signature was deemed factually incorrect—the form was duly signed and acknowledged (No. 326816870110322).

4. Citing the precedent in Gujarat Oil and Allied Industries Ltd. – 201 ITR 325, the Court reiterated that audit report submission is a procedural requirement, and substantial compliance is sufficient.

4.Final Verdict

✅ The rejection order was quashed.
✅ Delay of 24 days in filing Form 10B was condoned.
✅ The claim for Section 11 exemption was reinstated.

🔍 Key Takeaway

• This judgment reinforces the idea that procedural lapses should not override substantive justice, especially for bonafide charitable trusts. The ruling is a helpful precedent for other NGOs and trusts facing similar technical rejection

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