Mandatory statutory approval for Section 10B exemption cannot be replaced by substantial compliance; other tax benefits may still be examined on remand.

Section 10B exemption required the specific approval contemplated by the statute, namely approval as a hundred per cent export oriented undertaking by the competent Board. In the absence of that approval, the exemption could not be claimed on the basis of substantial compliance, and the claim was rejected as contrary to the statutory scheme. However, the request to examine entitlement to any other permissible tax benefit was accepted, and the matter was remanded to the Assessing Officer for that limited reconsideration. The ruling treats the approval condition as mandatory while leaving open fresh consideration of other benefits under the Act.

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Issues: Whether exemption under section 10B of the Income-tax Act, 1961 could be claimed without the approval contemplated by the statute, and whether the matter should be remanded for consideration of any other benefit under the Act.

Analysis: The statutory scheme of section 10B required approval as a hundred per cent export oriented undertaking by the Board constituted under section 14 of the Industries (Development and Regulation) Act, 1951. The assessee did not possess the requisite approval. The view that the benefit could be granted on the basis of substantial compliance was rejected as contrary to the statute. At the same time, the request for examination of entitlement to any other benefit under the Act was accepted and the matter was sent back for that limited purpose.

Conclusion: Exemption under section 10B was not available without the required approval. The denial of that claim was upheld, and the matter was remanded to the Assessing Officer to consider any other permissible benefit under the Act.

Final Conclusion: The statutory condition for section 10B relief was treated as mandatory, but further tax benefits, if any, were left open for fresh consideration on remand.

Ratio Decidendi: Where a tax exemption depends on a specific statutory approval, the requirement cannot be substituted by substantial compliance or judicial relaxation.

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