Assessee, a charitable educational institution, filed its return of income declaring nil income after claiming exemption under section 11 as well as under section 10(23C)(vi). Audit report in Form No. 10BB was obtained and uploaded on the Income-tax portal within the due date for filing the return. However, said Form No. 10BB was verified on the e-filing portal after 81 days. Assessing Officer issued an intimation under section 143(1) denying the assessee’s claims of exemption under section 11 and section 10(23C)(vi) and raised a tax demand. During appeal before the National Faceless Appeal Centre, assessee filed an application under section 119(2)(b) seeking condonation of delay in verification of Form No. 10BB.Principal Commissioner rejected the application on the ground that no reasonable cause was shown for the delay. On writ, the assessee explained that delay had occurred as the Chartered Accountant failed to prompt or instruct an authorised person from the assessee institute to verify the audit report on the e-filing portal before the due date of filing of return. Allowing the petition, the Court held that since assessee institute would suffer grave hardship if the delay was not condoned and the exemption denied merely on this count, delay. Delay was condoned.  (AY. 2018-19)