Assessee, a charitable trust registered under section 12AA, filed return of income claiming exemption under section 11(1) and (2) of the Act.  It did not file audit report in Form No. 10B along with return of income and filed same electronically at a later stage. Assessing Officer processed return under section 143(1) and denied exemption on ground that along with return of income audit report was not filed. The order of the Assessing Officer  was affirmed by Tribunal. On appeal the Court held that  since audit report was available with Assessing Officer when he processed return under section 143(1), requirement of law was satisfied. Exemption was allowed. Court observed that The  Finance Act, 2015 ((2015) 373 ITR (St.) 25), with effect from April 1, 2016, that is from the assessment year 2016-2017, did not effect any change which could be said to have altered the legal position. The only change was with regard to compulsory filing of the audit report in form 10B in electronic form which is made mandatory under rule 12(2) of the Income-tax Rules, 1962 but there is no change with regard to the substantive law about filing of the audit report. Court also observed that  the application contemplated under section 119(2)(b) of the Act is only an additional remedy for the assessee which could not be said to be compulsorily resorted to by the assessee. Circular No. 7 of 2018 dated December 20, 2018 ((2020) 420 ITR (St.) 389) issued under section 119 of the Act could not be, therefore said to have taken away the appellate remedy.(AY. 2018-19)