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2021 (2) TMI 185 - HC - Income TaxExemption u/s 11 denied - delay in filing the Form no.10 - Condonation of delay u/s.119(2)(b) - rejecting the application filed by the writ-applicant for condonation of delay in filing the Form no.10 - whether genuine hardship had been shown which prevented it from filing the Form no.10.? - HELD THAT:- Approach in the cases of the present type should be equitious, balancing and judicious. Technically, strictly and liberally speaking, the respondent might be justified in denying the exemption under Section 12 of the Act by rejecting such condonation application, but an assessee, a public charitable trust past 30 years who substantially satisfies the condition for availing such exemption, should not be denied the same merely on the bar of limitation especially when the legislature has conferred wide discretionary powers to condone such delay on the authorities concerned. We may also refer to the decision of this Court in CIT v. Gujarat Oil and Allied Industries Limited [1992 (9) TMI 67 - GUJARAT HIGH COURT] wherein it is held that the provision regarding furnishing of audit report with the return has to be treated as a procedural proviso. It is directory in nature and its substantial compliance would suffice. In that case, the assessee had not produced the audit report along with the return of income but produced the same before the completion of the assessment. This Court took the view that the benefit of exemption should not be denied merely on account of delay in furnishing the same and it is permissible for the assessee to produce the audit report at a later stage either beore the Income Tax Officer or before the appellate authority by assigning sufficient cause. Writ-application succeeds and is hereby allowed - The delay condonation application filed by the writ-applicant before the respondent is hereby allowed.
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