SHREE PUSHKAR FOUNDATION,MUMBAI vs. INCOME TAX OFFICER (EXEMPTION)-WARD 2(30, MUMBAI

Briefly stated, facts of the case are that the assessee is a t Briefly stated, facts of the case are that the assessee is a t Briefly stated, facts of the case are that the assessee is a trust registered under the Provisions of the Income registered under the Provisions of the Income-tax Act and is tax Act and is engaged in providing education, medical relief and relief to the poor engaged in providing education, medical relief and relief to the poor engaged in providing education, medical relief and relief to the poor etc. The assessee, for the first time accumulated its income and etc. The assessee, for the first time accumulated its income and etc. The assessee, for the first time accumulated its income and claimed exemption u/s 11(2) of the Income claimed exemption u/s 11(2) of the Income-tax Act, 1961 tax Act, 1961 (in short ‘the Act’). The assessee filed return of income on 14.03.2022 ‘the Act’). The assessee filed return of income on 14.03.2022 ‘the Act’). The assessee filed return of income on 14.03.2022 declaring Nil income as against the due date prescribed on declaring Nil income as against the due date prescribed on declaring Nil income as against the due date prescribed on 15.03.2022. Further, the assessee filed audit report u/s 12A of the 15.03.2022. Further, the assessee filed audit report u/s 12A of the 15.03.2022. Further, the assessee filed audit report u/s 12A of the Act and prescribed Form No. 10B on 15.02.2022 (on the due date). Act and prescribed Form No. 10B on 15.02.2022 (on the du Act and prescribed Form No. 10B on 15.02.2022 (on the du Further, the assessee was required to file Form No. 10, which is a Further, the assessee was required to file Form No. 10, which is a Further, the assessee was required to file Form No. 10, which is a statement to be furnished to the Assessing Officer for claiming statement to be furnished to the Assessing Officer for claiming statement to be furnished to the Assessing Officer for claiming exemption u/s 11(2) of the Act. However, the assessee submitted exemption u/s 11(2) of the Act. However, the assessee submitted exemption u/s 11(2) of the Act. However, the assessee submitted due to technical problem on the Income due to technical problem on the Income-tax Portal, t tax Portal, the said form was filed belittling on 09.02.2023 as against the due date on was filed belittling on 09.02.2023 as against the due date on was filed belittling on 09.02.2023 as against the due date on 15.03.2022. The return of income filed by the assessee was 15.03.2022. The return of income filed by the assessee was 15.03.2022. The return of income filed by the assessee was processed u/s 143(1) of the Act on 25.11.2022 wherein the claim of processed u/s 143(1) of the Act on 25.11.2022 wherein the claim of processed u/s 143(1) of the Act on 25.11.2022 wherein the claim of exemption u/s 11(2) of the Act amounting to Rs.51,21,991/- was exemption u/s 11(2) of the Act amounting to Rs.51,21,99 exemption u/s 11(2) of the Act amounting to Rs.51,21,99 disallowed and corresponding adjustment was made in order disallowed and corresponding adjustment was made in order disallowed and corresponding adjustment was made in order passed u/s 143(1)(a)(ii) of the Act. passed u/s 143(1)(a)(ii) of the Act.

We have heard rival submission of the parties and perused We have heard rival submission of the parties and perused We have heard rival submission of the parties and perused the relevant material on record. relevant material on record. Under the provisions of section 11(2) of Under the provisions of section 11(2) of the Act, any charitable trust has to apply certain specified any charitable trust has to apply certain specified any charitable trust has to apply certain specified percentage of income of income (which was 85% during relevant period) which was 85% during relevant period) for charitable purpose, but if income charitable purpose, but if income to that extent is not applied to the is not applied to the prescribed percentage, prescribed percentage, then the assessee can accumulate or set the assessee can accumulate or set apart said income for application to such purposes in India subject apart said income for application to such purposes in India subject apart said income for application to such purposes in India subject to the conditions prescribed in section 11(2) of the Act. For ready to the conditions prescribed in section 11(2) of the Act. For ready to the conditions prescribed in section 11(2) of the Act. For ready reference, section 11(2) of the A eference, section 11(2) of the Act is reproduced as under: t is reproduced as under:

In the present case, the High Court as well as the ITAT have 6. In the present case, the High Court as well as the ITAT have 6. In the present case, the High Court as well as the ITAT have observed and held that for claiming the so observed and held that for claiming the so-called exemption relief under called exemption relief under section 10B (8) of the IT Act, furnishing the declaration to the as section 10B (8) of the IT Act, furnishing the declaration to the as section 10B (8) of the IT Act, furnishing the declaration to the assessing officer is mandatory but furnishing the same before the due date of officer is mandatory but furnishing the same before the due date of officer is mandatory but furnishing the same before the due date of filing the original return of income is directory. In the present case, filing the original return of income is directory. In the present case, filing the original return of income is directory. In the present case, when the assessee submitted its original return of income under section when the assessee submitted its original return of income under section when the assessee submitted its original return of income under section 139(1) of the IT Act on 31 139(1) of the IT Act on 31-10-2001, which was the due date for filing of which was the due date for filing of the original return of income, the assessee specifically and clearly the original return of income, the assessee specifically and clearly the original return of income, the assessee specifically and clearly stated that it is a company and is a 100% export stated that it is a company and is a 100% export-oriented unit and oriented unit and entitled to claim exemption under section 10B of the IT Act and therefore entitled to claim exemption under section 10B of the IT Act and therefore entitled to claim exemption under section 10B of the IT Act and therefore no loss is being carried forward. Along with the original return filed on s being carried forward. Along with the original return filed on s being carried forward. Along with the original return filed on 31-10-2001, the assessee also annexed a note to the computation of 2001, the assessee also annexed a note to the computation of 2001, the assessee also annexed a note to the computation of income clearly stating as above. However, thereafter the assessee filed income clearly stating as above. However, thereafter the assessee filed income clearly stating as above. However, thereafter the assessee filed the revised return of income under section 139(5) of the revised return of income under section 139(5) of the IT Act on 23 the IT Act on 23-12- 2002 and filed a declaration under section 10B (8) which admittedly 2002 and filed a declaration under section 10B (8) which admittedly 2002 and filed a declaration under section 10B (8) which admittedly was after the due date of filing of the original return under section was after the due date of filing of the original return under section was after the due date of filing of the original return under section 139(1), i.e., 31- -10-2001.

It is the case on behalf of the Revenue that as there was a non 7. It is the case on behalf of the Revenue that as there was a non 7. It is the case on behalf of the Revenue that as there was a non- compliance of twin conditions under section 10B (8) of the IT Act, liance of twin conditions under section 10B (8) of the IT Act, liance of twin conditions under section 10B (8) of the IT Act, namely, the declaration under section 10B (8) was not submitted along namely, the declaration under section 10B (8) was not submitted along namely, the declaration under section 10B (8) was not submitted along with the original return of income, the assessee shall not be entitled to with the original return of income, the assessee shall not be entitled to with the original return of income, the assessee shall not be entitled to the exemption/benefit under section 10B (8) of th the exemption/benefit under section 10B (8) of the IT Act. According to e IT Act. According to the Revenue, furnishing of declaration under section 10B (8) before the the Revenue, furnishing of declaration under section 10B (8) before the the Revenue, furnishing of declaration under section 10B (8) before the due date of filing original return of income is also mandatory. On the due date of filing original return of income is also mandatory. On the due date of filing original return of income is also mandatory. On the other hand, it is the case on behalf of the assessee, which has been other hand, it is the case on behalf of the assessee, which has been other hand, it is the case on behalf of the assessee, which has been accepted by the High accepted by the High Court, that the requirement of submission of Court, that the requirement of submission of declaration under section 10B (8) is mandatory in nature, but the time declaration under section 10B (8) is mandatory in nature, but the time declaration under section 10B (8) is mandatory in nature, but the time limit within which the declaration is to be filed is directory in nature. limit within which the declaration is to be filed is directory in nature. limit within which the declaration is to be filed is directory in nature.

While considering the issue involved, whether the time limit 8. While considering the issue involved, whether the time limit 8. While considering the issue involved, whether the time limit within which the declaration is to be filed as provided under section 10B (8) is which the declaration is to be filed as provided under section 10B (8) is which the declaration is to be filed as provided under section 10B (8) is mandatory or directory, Section 10B (8) is required to be referred to, mandatory or directory, Section 10B (8) is required to be referred to, mandatory or directory, Section 10B (8) is required to be referred to, which reads as under: which reads as under: "10B (8) Notwithstanding anything contained in the foregoing "10B (8) Notwithstanding anything contained in the foregoing "10B (8) Notwithstanding anything contained in the foregoing provisions of this se provisions of this section, where the assessee, before the due ction, where the assessee, before the due date for furnishing the return of income under sub date for furnishing the return of income under sub-section (1) of section (1) of Section 139, furnishes to the Assessing Officer a declaration in Section 139, furnishes to the Assessing Officer a declaration in Section 139, furnishes to the Assessing Officer a declaration in writing that the provisions of this section may not be made writing that the provisions of this section may not be made writing that the provisions of this section may not be made applicable to him, the applicable to him, the provisions of this section shall not apply to provisions of this section shall not apply to him for any of the relevant assessment years." him for any of the relevant assessment years." On a plain reading of section 10B (8) of the IT Act as it is, i.e., "where On a plain reading of section 10B (8) of the IT Act as it is, i.e., "where On a plain reading of section 10B (8) of the IT Act as it is, i.e., "where the assessee, before the due date for furnishing the return of income the assessee, before the due date for furnishing the return of income the assessee, before the due date for furnishing the return of income under sub-section section (1) of section 139, furnishes to the Assessing Officer a (1) of section 139, furnishes to the Assessing Officer a declaration in writing that the provisions of section 10B may not be declaration in writing that the provisions of section 10B may not be declaration in writing that the provisions of section 10B may not be made applicable to him, the provisions of section 10B shall not apply to made applicable to him, the provisions of section 10B shall not apply to made applicable to him, the provisions of section 10B shall not apply to him for any of the relevant assessment years", we note th him for any of the relevant assessment years", we note that the wording at the wording of the section 10B (8) is very clear and unambiguous. For claiming the of the section 10B (8) is very clear and unambiguous. For claiming the of the section 10B (8) is very clear and unambiguous. For claiming the benefit under section 10B (8), the twin conditions of furnishing the benefit under section 10B (8), the twin conditions of furnishing the benefit under section 10B (8), the twin conditions of furnishing the declaration to the assessing officer in writing and that the same must declaration to the assessing officer in writing and that the same must declaration to the assessing officer in writing and that the same must be furnished before the due da be furnished before the due date of filing the return of income under te of filing the return of income under sub-section (1) of section 139 of the IT Act are required to be fulfilled section (1) of section 139 of the IT Act are required to be fulfilled section (1) of section 139 of the IT Act are required to be fulfilled and/or satisfied. In our view, both the conditions to be satisfied are and/or satisfied. In our view, both the conditions to be satisfied are and/or satisfied. In our view, both the conditions to be satisfied are mandatory. It cannot be said that one of the conditions would be mandatory. It cannot be said that one of the conditions would be mandatory. It cannot be said that one of the conditions would be mandatory and the other would be directory, where the words used for ory and the other would be directory, where the words used for ory and the other would be directory, where the words used for furnishing the declaration to the assessing officer and to be furnished furnishing the declaration to the assessing officer and to be furnished furnishing the declaration to the assessing officer and to be furnished before the due date of filing the original return of income under sub before the due date of filing the original return of income under sub before the due date of filing the original return of income under sub- section (1) of section 139 are same/similar. It can section (1) of section 139 are same/similar. It cannot be disputed that in not be disputed that in a taxing statute the provisions are to be read as they are and they are a taxing statute the provisions are to be read as they are and they are a taxing statute the provisions are to be read as they are and they are to be literally construed, more particularly in a case of exemption sought to be literally construed, more particularly in a case of exemption sought to be literally construed, more particularly in a case of exemption sought by an assessee. by an assessee.

In such a situation, filing a revised return under section 139(5) 9. In such a situation, filing a revised return under section 139(5) 9. In such a situation, filing a revised return under section 139(5) of the IT Act claiming carrying forward of losses subsequently would not help IT Act claiming carrying forward of losses subsequently would not help IT Act claiming carrying forward of losses subsequently would not help the assessee. In the present case, the assessee filed its original return the assessee. In the present case, the assessee filed its original return the assessee. In the present case, the assessee filed its original return under section 139(1) and not under section 139(3). Therefore, the under section 139(1) and not under section 139(3). Therefore, the under section 139(1) and not under section 139(3). Therefore, the Revenue is right in submitting that th Revenue is right in submitting that the revised return filed by the e revised return filed by the assessee under section 139(5) can only substitute its original return assessee under section 139(5) can only substitute its original return assessee under section 139(5) can only substitute its original return under section 139(1) and cannot transform it into a return under section under section 139(1) and cannot transform it into a return under section under section 139(1) and cannot transform it into a return under section 139(3), in order to avail the benefit of carrying forward or set 139(3), in order to avail the benefit of carrying forward or set 139(3), in order to avail the benefit of carrying forward or set-off of any loss under section 80 of the IT Act. The assessee can file a revised der section 80 of the IT Act. The assessee can file a revised der section 80 of the IT Act. The assessee can file a revised return in a case where there is an omission or a wrong statement. But a return in a case where there is an omission or a wrong statement. But a return in a case where there is an omission or a wrong statement. But a revised return of income, under section 139(5) cannot be filed, to revised return of income, under section 139(5) cannot be filed, to revised return of income, under section 139(5) cannot be filed, to withdraw the claim and subsequently claiming the carrie withdraw the claim and subsequently claiming the carried forward or d forward or set-off of any loss. Filing a revised return under section 139(5) of the IT off of any loss. Filing a revised return under section 139(5) of the IT off of any loss. Filing a revised return under section 139(5) of the IT Act and taking a contrary stand and/or claiming the exemption, which Act and taking a contrary stand and/or claiming the exemption, which Act and taking a contrary stand and/or claiming the exemption, which was specifically not claimed earlier while filing the original return of was specifically not claimed earlier while filing the original return of was specifically not claimed earlier while filing the original return of income is not permissible income is not permissible. By filing the revised return of income, the . By filing the revised return of income, the assessee cannot be permitted to substitute the original return of income assessee cannot be permitted to substitute the original return of income assessee cannot be permitted to substitute the original return of income filed under section 139(1) of the IT Act. Therefore, claiming benefit under filed under section 139(1) of the IT Act. Therefore, claiming benefit under filed under section 139(1) of the IT Act. Therefore, claiming benefit under section 10B (8) and furnishing the declaration as required un section 10B (8) and furnishing the declaration as required un section 10B (8) and furnishing the declaration as required under section 10B(8) in the revised return of income which was much after the due 10B(8) in the revised return of income which was much after the due 10B(8) in the revised return of income which was much after the due date of filing the original return of income under section 139(1) of the IT date of filing the original return of income under section 139(1) of the IT date of filing the original return of income under section 139(1) of the IT Act, cannot mean that the assessee has complied with the condition of Act, cannot mean that the assessee has complied with the condition of Act, cannot mean that the assessee has complied with the condition of furnishing the declaration bef furnishing the declaration before the due date of filing the original ore the due date of filing the original return of income under section 139(1) of the Act. As observed return of income under section 139(1) of the Act. As observed return of income under section 139(1) of the Act. As observed hereinabove, for claiming the benefit under section 10B (8), both the hereinabove, for claiming the benefit under section 10B (8), both the hereinabove, for claiming the benefit under section 10B (8), both the conditions of furnishing the declaration and to file the same before the conditions of furnishing the declaration and to file the same before the conditions of furnishing the declaration and to file the same before the due date of filing the original return of income are mandatory in nature. filing the original return of income are mandatory in nature. filing the original return of income are mandatory in nature.

Even the submission on behalf of the assessee that it was not 10. Even the submission on behalf of the assessee that it was not 10. Even the submission on behalf of the assessee that it was not necessary to exercise the option under section 10B(8) of the IT Act and necessary to exercise the option under section 10B(8) of the IT Act and necessary to exercise the option under section 10B(8) of the IT Act and even without filing the revised return of income, the a even without filing the revised return of income, the assessee could ssessee could have submitted the declaration in writing to the assessing officer during have submitted the declaration in writing to the assessing officer during have submitted the declaration in writing to the assessing officer during the assessment proceedings has no substance and the same cannot be the assessment proceedings has no substance and the same cannot be the assessment proceedings has no substance and the same cannot be accepted. Even the submission made on behalf of the assessee that accepted. Even the submission made on behalf of the assessee that accepted. Even the submission made on behalf of the assessee that filing of the declaration subsequen filing of the declaration subsequently and may be during the tly and may be during the assessment proceedings would have made no difference also has no assessment proceedings would have made no difference also has no assessment proceedings would have made no difference also has no substance. The significance of filing a declaration under section 10B(8) substance. The significance of filing a declaration under section 10B(8) substance. The significance of filing a declaration under section 10B(8) can be said to be co can be said to be co-terminus with filing of a return under section terminus with filing of a return under section 139(1), as a check has b 139(1), as a check has been put in place by virtue of section 10B (5) to een put in place by virtue of section 10B (5) to verify the correctness of claim of deduction at the time of filing the verify the correctness of claim of deduction at the time of filing the verify the correctness of claim of deduction at the time of filing the return. If an assessee claims an exemption under the Act by virtue of return. If an assessee claims an exemption under the Act by virtue of return. If an assessee claims an exemption under the Act by virtue of Section 10B, then the correctness of claim has already been verifi Section 10B, then the correctness of claim has already been verifi Section 10B, then the correctness of claim has already been verified under section 10B (5). Therefore, if the claim is withdrawn post the date under section 10B (5). Therefore, if the claim is withdrawn post the date under section 10B (5). Therefore, if the claim is withdrawn post the date of filing of return, the accountant's report under section 10B (5) would of filing of return, the accountant's report under section 10B (5) would of filing of return, the accountant's report under section 10B (5) would become falsified and would stand to be nullified. become falsified and would stand to be nullified.

Now so far as the reliance placed upon the decision 11. Now so far as the reliance placed upon the decision of this Court in of this Court in the case of G.M. Knitting Industries (P.) Ltd. (supra), relied upon by the the case of G.M. Knitting Industries (P.) Ltd. (supra), relied upon by the the case of G.M. Knitting Industries (P.) Ltd. (supra), relied upon by the learned counsel appearing on behalf of the assessee is concerned, learned counsel appearing on behalf of the assessee is concerned, learned counsel appearing on behalf of the assessee is concerned, section 10B (8) is an exemption provision which cannot be compared section 10B (8) is an exemption provision which cannot be compared section 10B (8) is an exemption provision which cannot be compared with claiming an additional dep with claiming an additional depreciation under section 32(1) (ii reciation under section 32(1) (ii-a) of the Act. As per the settled position of law, an assessee claiming exemption Act. As per the settled position of law, an assessee claiming exemption Act. As per the settled position of law, an assessee claiming exemption has to strictly and literally comply with the exemption provisions. has to strictly and literally comply with the exemption provisions. has to strictly and literally comply with the exemption provisions. Therefore, the said decision shall not be applicable to the facts of the Therefore, the said decision shall not be applicable to the facts of the Therefore, the said decision shall not be applicable to the facts of the case on hand, while considering the exemption provisions. Even case on hand, while considering the exemption provisions. Even case on hand, while considering the exemption provisions. Even otherwise, Chapter III and Chapter VIA of the Act operate in different otherwise, Chapter III and Chapter VIA of the Act operate in different otherwise, Chapter III and Chapter VIA of the Act operate in different realms and principles of Chapter III, which deals with "incomes which realms and principles of Chapter III, which deals with "incomes which realms and principles of Chapter III, which deals with "incomes which do not form a part of total income", cannot be equa do not form a part of total income", cannot be equated with mechanism ted with mechanism provided for deductions in Chapter VIA, which deals with "deductions to provided for deductions in Chapter VIA, which deals with "deductions to provided for deductions in Chapter VIA, which deals with "deductions to be made in computing total income". Therefore, none of the decisions be made in computing total income". Therefore, none of the decisions be made in computing total income". Therefore, none of the decisions which are relied upon on behalf of the assessee on interpretation of which are relied upon on behalf of the assessee on interpretation of which are relied upon on behalf of the assessee on interpretation of Chapter VIA shall be applic Chapter VIA shall be applicable while considering the claim under able while considering the claim under section 10B(8) of the IT Act. section 10B(8) of the IT Act.

Even the submission on behalf of the assessee that the assessee 12. Even the submission on behalf of the assessee that the assessee 12. Even the submission on behalf of the assessee that the assessee had a substantive statutory right under section 10B(8) to opt out of had a substantive statutory right under section 10B(8) to opt out of had a substantive statutory right under section 10B(8) to opt out of section 10B which cannot be nullified by construin section 10B which cannot be nullified by construing the purely g the purely procedural time requirement regarding the filing of the declaration under procedural time requirement regarding the filing of the declaration under procedural time requirement regarding the filing of the declaration under section 10B(8) as being mandatory also has no substance. As observed section 10B(8) as being mandatory also has no substance. As observed section 10B(8) as being mandatory also has no substance. As observed hereinabove, the exemption provisions are to be strictly and literally hereinabove, the exemption provisions are to be strictly and literally hereinabove, the exemption provisions are to be strictly and literally complied with and the same ca complied with and the same cannot be construed as procedural nnot be construed as procedural requirement.

So far as the submission on behalf of the assessee that against the 13. So far as the submission on behalf of the assessee that against the 13. So far as the submission on behalf of the assessee that against the decision of the Delhi High Court in the case of Moser Baer India Ltd. decision of the Delhi High Court in the case of Moser Baer India Ltd. decision of the Delhi High Court in the case of Moser Baer India Ltd. (supra), a special leave petition has been dismissed as withdrawn and (supra), a special leave petition has been dismissed as withdrawn and (supra), a special leave petition has been dismissed as withdrawn and the revenue cannot be permitted to take a contrary view is concerned, it the revenue cannot be permitted to take a contrary view is concerned, it the revenue cannot be permitted to take a contrary view is concerned, it is to be noted that the special leave petition against the decision of the is to be noted that the special leave petition against the decision of the is to be noted that the special leave petition against the decision of the Delhi High Court in the case of Moser Baer India Ltd. (supra) has been Delhi High Court in the case of Moser Baer India Ltd. (supra) has been Delhi High Court in the case of Moser Baer India Ltd. (supra) has been dismissed as withdrawn due to there dismissed as withdrawn due to there being low tax effect and the being low tax effect and the question of law has specifically been kept open. Therefore, withdrawal question of law has specifically been kept open. Therefore, withdrawal question of law has specifically been kept open. Therefore, withdrawal of the special leave petition against the decision of the Delhi High Court of the special leave petition against the decision of the Delhi High Court of the special leave petition against the decision of the Delhi High Court in the case of Moser Baer (supra) cannot be held against the revenue. in the case of Moser Baer (supra) cannot be held against the revenue. in the case of Moser Baer (supra) cannot be held against the revenue.

In view of the above discussion and for the reasons stated above, of the above discussion and for the reasons stated above, of the above discussion and for the reasons stated above, we are of the opinion that the High Court has committed a grave error in we are of the opinion that the High Court has committed a grave error in we are of the opinion that the High Court has committed a grave error in observing and holding that the requirement of furnishing a declaration observing and holding that the requirement of furnishing a declaration observing and holding that the requirement of furnishing a declaration under section 10B(8) of the IT Act is mandatory, but under section 10B(8) of the IT Act is mandatory, but the time limit within the time limit within which the declaration is to be filed is not mandatory but is directory. which the declaration is to be filed is not mandatory but is directory. which the declaration is to be filed is not mandatory but is directory. The same is erroneous and contrary to the unambiguous language The same is erroneous and contrary to the unambiguous language The same is erroneous and contrary to the unambiguous language contained in section 10B(8) of the IT Act. We hold that for claiming We hold that for claiming contained in section 10B(8) of the IT Act. the benefit under section 10B( the benefit under section 10B(8) of the IT Act, the twin 8) of the IT Act, the twin conditions of furnishing a declaration before the assessing conditions of furnishing a declaration before the assessing conditions of furnishing a declaration before the assessing officer and that too before the due date of filing the original officer and that too before the due date of filing the original officer and that too before the due date of filing the original return of income under section 139(1) are to be satisfied and return of income under section 139(1) are to be satisfied and return of income under section 139(1) are to be satisfied and both are mandatorily to be complied with both are mandatorily to be complied with. Accordingly, the ccordingly, the question of law is answered in favour of the Revenue and against the question of law is answered in favour of the Revenue and against the question of law is answered in favour of the Revenue and against the assessee. The orders passed by the High Court as well as ITAT taking assessee. The orders passed by the High Court as well as ITAT taking assessee. The orders passed by the High Court as well as ITAT taking a contrary view are hereby set aside and it is held that the assessee a contrary view are hereby set aside and it is held that the assessee a contrary view are hereby set aside and it is held that the assessee shall not be entitled to the ben shall not be entitled to the benefit under section 10B(8) of the IT Act on efit under section 10B(8) of the IT Act on non-compliance of the twin conditions as provided under section 10B(8) compliance of the twin conditions as provided under section 10B(8) compliance of the twin conditions as provided under section 10B(8) of the IT Act, as observed hereinabove. The present Appeal is of the IT Act, as observed hereinabove. The present Appeal is of the IT Act, as observed hereinabove. The present Appeal is accordingly Allowed. However, in the facts and circumstances of the accordingly Allowed. However, in the facts and circumstances of the accordingly Allowed. However, in the facts and circumstances of the case, there shall be no order as to costs. shall be no order as to costs.” (emphasis supplied externally) (emphasis supplied externally)

The Pr. Chief Commissioner 1 Chief Commissioner of Income 3. The Pr. Chief Commissioner 1 Chief Commissioner of Income 3. The Pr. Chief Commissioner 1 Chief Commissioner of Income- tax, as the case may be, while entertaining such applications for tax, as the case may be, while entertaining such applications for tax, as the case may be, while entertaining such applications for condona ti on of delay in filing form No. 9A and Form No. 10 , shall condona ti on of delay in filing form No. 9A and Form No. 10 , shall condona ti on of delay in filing form No. 9A and Form No. 10 , shall satisfy themselves that the app licant was prevented satisfy themselves that the app licant was prevented satisfy themselves that the app licant was prevented by reasonable cause from filing such Form within the stipulated time. reasonable cause from filing such Form within the stipulated time. reasonable cause from filing such Form within the stipulated time. In respect of Form No. 10 , the Pr. Chief In respect of Form No. 10 , the Pr. Chief Commissioner 1 Chief Commissioner of Income Commissioner 1 Chief Commissioner of Income-tax, as the case tax, as the case may be, shall also satisfy may be, shall also satisfy themselves may be, shall also satisfy themselves that the amount themselves that that the amount the amount accumulated or set apart has accumulated or set apart has been invested or deposited in been invested or deposited in anyone or more of the forms or modes specified in sub anyone or more of the forms or modes specified in sub anyone or more of the forms or modes specified in sub-section (5) of section 11 of the Act. of section 11 of the Act.

In the result, the appeal of the assessee is allowed for In the result, the appeal of the assessee is allowed for In the result, the appeal of the assessee is allowed for statistical purposes.