Charitable Trust Can’t Be Denied Tax Exemption for Delayed Form 10B Filing: Bombay HC

People’s Mobile Hospitals Vs CIT (Exemption) and Ors. (Bombay High Court) Denial of Benefits of Section 11 on Account of Delay in Filing Audit Report – Procedural Lapse or Substantive Default? 1. Introduction A recurring controversy in the taxation of charitable and religious trusts is whether a delay in furnishing the audit report in Form No. 10B disentitles such trusts from claiming the benefit of exemption under Section 11 of the Income-tax Act, 1961 (“the Act”). While the statutory mandate under Section 12A(1)(b) requires the audit report to be filed on or before the specified date...