Form 10BB compliance under section 10(23C)(iv) did not justify denial of exemption where the claim was consistently accepted.

An assessee covered by section 10(23C)(iv) was required to comply with Form 10BB, not Form 10B, and the mismatch in the form filed did not justify denial of exemption. The record showed that the exemption claim had been consistently accepted in earlier and later years, which supported the assessee's entitlement. On that basis, the adjustment made while processing the return was unsustainable, and the exemption could not be refused merely for the stated form-related defect.

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Issues: Whether the assessee, being covered by section 10(23C)(iv), was required to file Form 10BB and not Form 10B, and whether denial of exemption on that ground was justified.

Analysis: The assessee was found to be covered by section 10(23C)(iv) of the Income-tax Act, 1961, for which Form 10BB was the relevant prescribed return of compliance. The record also showed that the exemption had been consistently claimed and allowed in earlier and later years. On that basis, the adjustment made while processing the return could not justify denial of the exemption claim.

Conclusion: The denial of exemption was held unsustainable, and the assessee was entitled to the claimed exemption.

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