Akshara Charitable Trust Vs CIT (Exemptions) (Madras High Court)
Madras HC grants interim relief to Trust – directs no coercive action in Form 10B delay condonation dispute
Madras High Court granted interim protection to the petitioner-trust against rejection of its condonation petitions u/s 119(2)(b) for belated filing of Form 10B (Audit Report).
The petitioner, a charitable trust registered in Hosur, had filed its returns for AYs 2020-21 & 2021-22 within time but uploaded Form 10B belatedly—with delays of 1,670 & 1,274 days respectively. The CIT (Exemptions) rejected both condonation petitions vide orders dated 08-09-2025, citing the CBDT’s Guidelines F.No.197/639/2024-ITA-I dated 18-11-2024, which restrict relaxation under s.119(2)(b). The trust also challenged these very guidelines (paragraph 3) in a separate writ (W.P.No.40245/2025) as being arbitrary & ultra vires.
Hearing all three connected writs together, the Court noted that the issue was prima facie covered in favour of the assessee & therefore directed that the department shall not precipitate the matter until further orders. The cases were posted to 17-11-2025 for the Revenue’s counter-affidavit.
Key Outcome:
- Delay-condonation rejections stayed;
- CBDT’s restrictive 2024 guidelines under judicial scrutiny;
- Interim protection granted to the charitable trust.
This interim order signals judicial leniency toward procedural defaults by genuine charitable institutions, reaffirming that technical delays in filing Form 10B should not defeat substantive exemption claims, especially when returns are filed in time. The forthcoming hearing will test the validity of CBDT’s 2024 condonation framework u/s 119(2)(b).
