Exemption u/s. 11 — Educational trust — Denial of exemption — Form 10B filed manually within prescribed period — Electronic filing made after delay of 2,732 days — Application for condonation of delay rejected — Held by High Court that assessee’s conduct neither informed with lethargy nor indolence — Rejection of application for condonation of delay in electronically filing unsustainable and orders set aside.

11. The Borivli Education Society v. CIT: (2026) 486 ITR 652 (Bom): 2025 SCC OnLine Bom 1871

A. Y. 2014-15: Date of order 17/02/2025

S. 11 of ITA 1961

Exemption u/s. 11 — Educational trust — Denial of exemption — Form 10B filed manually within prescribed period — Electronic filing made after delay of 2,732 days — Application for condonation of delay rejected — Held by High Court that assessee’s conduct neither informed with lethargy nor indolence — Rejection of application for condonation of delay in electronically filing unsustainable and orders set aside.

The assessee is an educational trust. For the A. Y. 2014-15 the assessee filed the audit report in Form 10B manually within the prescribed period. But failed to upload it electronically due to the belief of its Chartered Accountant that electronic filing was not mandatory. The Assessing Officer denied the exemption u/s. 11 of the Income-tax Act, 1961 without assigning reasons and without issuing the mandatorily required show-cause notice. Subsequent applications for rectification and for condonation of delay were rejected without affording any opportunity of hearing to the assessee.

The assessee filed writ petition challengin