- (1.) REJECTING the application of the petitioner under s. 10(23C)(iv) of the IT Act, 1961 (for short, "the Act").
(2.) CASE of the petitioner is that the petitioner -Board has been set up by the Government of India as an autonomous society under the Societies Registration Act, 1860 to promote integrated development in Horticulture. The petitioner was exempt under s. 10(23C)(iv) of the Act in the years from 1987 -88 to 2007 -08 and was also registered as a trust under was vested in Chief CIT instead of Central Government and the petitioner made an application to the said authority. The Chief CIT dismissed the application on the ground that audit reports in Form No. 10BB were not filed with the returns and the same were filed later, but were not dated as required under 10th proviso of the said provision.
(3.) LEARNED counsel for the petitioner submits that the requirement of the proviso in question has been substantially complied with. The procedural requirement of the audit report being filed along with the returns cannot be so strictly construed as to defeat the very object for which the provision has been enacted. No prejudice whatsoever is caused, if a report not filed with the return but filed separately is also taken into account. We find merit on the contention raised.;