Assessee-trust filed its return of income for Assessment Year 2020-2021 claiming exemption under Section 11. Audit report in Form 10B was filed along with the return. Similarly, for Assessment Year 2023-2024, assessee claimed exemption under Section 10(23C) and filed an audit report in Form 10BB along with the return. CPC processed returns under Section 143(1) and denied exemption on the grounds that the audit reports were filed belatedly with reference to timelines under Section 139. CIT(A)  confirmed the denial of exemption, observing that conditions for claiming exemption were not fulfilled due to the late filing of audit reports. Tribunal held that audit reports were very much available on record when returns were processed, hence such technical/procedural breach could not lead to denial of exemption under Sections 11 and 12 or under Section 10(23C) at the stage of intimation under Section 143(1). Therefore, intimation under Section 143(1) was quashed. (AY. 2020-21, 2022-23)