The AO denied the exemption under s. 11 to the assessee due to non-audited books for preceding years, late filing of Form 10B audit report, amongst other things. Meanwhile, the Madras High Court order appointed a Managing Trustee to resolve internal disputes. For prior AYs, initial assessments denying exemptions were set aside by the Tribunal and remanded. On re-assessment, AO allowed exemptions but disallowed certain expenses. The trust provided full details (e.g., ledger extracts for hostel rent) to the CIT (A), with no adverse remand report from the AO. The ITAT prioritized substantive compliance and continuity of the trust’s charitable objectives, ruling that procedural delays or resolved past issues could not bar exemption for the year in question.(AY. 2017-18)