District Judge Jonathan Finestein said the decision to bring the youngster to court was “political correctness gone mad”.
Greater Manchester Police stood by their decision and Mr Finestein was criticised for being “out of date”.
The 10-year-old boy had accepted a formal warning.
The boy, from Irlam, Greater Manchester, was accused of racially abusing an 11-year-old fellow pupil and appeared in court earlier this month.
Source: BBC News