Approved superannuation fund exemption upheld despite no renewal requirement and wrong provision cited

An approved superannuation fund continued to qualify for exemption under section 10(25)(iii) because the approval granted under Part B of Schedule IV remained valid for the relevant assessment years, and Rule 2 did not require renewal every three years. The assessee was therefore entitled to the statutory benefit, and the absence of periodic renewal did not defeat exemption where the governing rules imposed no such condition. A wrong citation of the exemption provision also did not disentitle the assessee when entitlement in law was otherwise established. The Revenue's challenge to the exemption consequently failed.

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Issues: Whether the assessee was entitled to exemption under section 10(25)(iii) of the Income-tax Act, 1961 for an approved superannuation fund notwithstanding that the approval was not renewed periodically and the exemption was not claimed under the correct provision.

Analysis: The approval granted to the superannuation fund under Part-B of Schedule IV of the Income-tax Act, 1961 was found to remain valid for the relevant assessment years. Rule 2 of Part-B of Schedule IV did not prescribe any requirement of renewal every three years. The fund was duly approved by the competent authority, and the exemption under section 10(25)(iii) was otherwise applicable to an approved superannuation fund. The Court also held that a wrong mention of the exemption provision did not disentitle the assessee from the statutory benefit when the entitlement in law was otherwise established.

Conclusion: The assessee was entitled to exemption under section 10(25)(iii) of the Income-tax Act, 1961, and the Revenue's challenge failed.

Ratio Decidendi: Where an approved superannuation fund satisfies the statutory conditions for exemption, the benefit cannot be denied merely because the exemption was cited under a wrong provision or because no renewal of approval was obtained when the governing rules do not require such renewal.

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