The assessee-trust filed its return and uploaded its audit report in Form No. 10B with a minor delay of 50 days due to a shortage of qualified accountants, leading to the denial of the section 11 exemption and a major tax demand. The Commissioner (Exemptions) rejected the condonation application under section 119(2)(b) by relying on perceived filing delays in earlier years. The Hon’ble Bombay High Court held that section 119(2)(b) is a beneficial provision meant to mitigate genuine hardship and must be construed liberally. Rejection based on past history while ignoring current timely compliance constituted a failure in application of mind. Denying the exemption would cause genuine hardship and affect the trust’s educational aid activities; hence, the Court quashed the order and condoned the delay. (AY. 2018-19)