Section 11 exemption upheld where audit report filed in Form 10B was treated as sufficient compliance.

Filing the audit report in Form 10B was treated as sufficient compliance for claiming exemption under Section 11, and the insistence on Form 10BB was not allowed to defeat the substantive claim. The denial of exemption on that ground was therefore held unsustainable, and the assessee was held eligible for Section 11 exemption with consequential computation to follow.

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Issues: Whether the assessee was entitled to exemption under Section 11 despite filing the audit report in Form 10B instead of Form 10BB, and whether the denial of exemption could be sustained on that ground.

Analysis: The dispute turned on the effect of the form in which the audit report was furnished. The Tribunal accepted the assessee's explanation that the audit report filed in Form 10B constituted compliance for the purpose of claiming exemption, and treated the insistence on Form 10BB as not defeating the substantive claim. On that basis, the denial of exemption was found unsustainable.

Conclusion: The assessee was held eligible for exemption under Section 11, and the Assessing Officer was directed to make the consequential computation accordingly.

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