Assessee, a charitable institution engaged in the field of education, filed its return of income claiming exemption under section 11. The assessee had not e-filed the audit report in Form No. 10B along with or before filing of return of income; exemption could not be allowed. The assessee filed an application for condonation of delay of 1128 days in filing Form No. 10B under section 119(2)(b), claiming that the same could not be filed within the prescribed time due to inadvertence and miscommunication between its former and new firm of CAs. However, the same was rejected on the ground that the explanation for delay was not acceptable. The Court held that the assessee had furnished an explanation for delay in filing the application for condonation of delay before the concerned authority. Further, it was found that the assessee had brought to the notice of the concerned authority that the requirement of filing an audit report along with the return of income was procedural in nature and an audit report could be admitted subsequent to filing of return also. Not granting benefit of section 11 to assessee would certainly cause genuine hardship to assessee and may adversely affect functioning of educational institution run by it; accordingly, delay was to be condoned. CBDT Circular No. 16/2024 dated 18th November 2024. (AY. 2017-18)