The settled legal position uptill now is that for availing exemptions from tax the following conditions must be fulfilled:
1) The assessment proceedings could be said to be pending even at the stage of appeal, and as such, the details in Forms could be furnished even at the stage of appeal.
2) As long as the entitlement of the assesse regarding the exemption or deduction is not doubted, no addition can be made on the pretext that pre-scribed Form was filed belatedly.
3) Provision regarding furnishing of audit report in prescribed Form with the return has to be treated as a procedural proviso. It is directory in nature and its substantial compliance would suffice.
4) Prescribed Form can also be submitted during the appellate proceedings before the CITA Thus, as per the well settled judicial precedents of the Hon’ble courts it can be stated that condition (i) i.e. furnishing a declaration to the assessing officer in writing as per the provisions of Section 10B (8) is mandatory. Non filing of this declaration is very fatal to the availment of the exemption u/s 10B (8).
However, According to the judgement of the Hon’ble SC in the case of Wipro Ltd. dated 11th July 2022 for exemption u/s 10B the SC has held that for claiming the benefit un-der Section 10B(8) of the IT Act, the following twin conditions both are Mandatory.
(i) Furnishing a declaration to the assessing officer in writing that the provisions of Section 10B (8) may not be made applicable to him; and (ii) The said declaration to be furnished before the due date of filing the return of income under sub-section (1) of Section 139 of the IT Act.
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