Assessee, a statutory organization, filed its return of income under section 139(1) claiming certain deductions under section 80IB(10) of the Act. Assessing Officer rejected said claim on ground that since assessee had not filed its original return within period prescribed under section 139(1), it would not be entitled to said deductions in view of section 80AC of the Act. On appeal the claim was allowed by the CIT(A) and Tribunal.On appeal the Court held that the assessee had a reasonable and bona fide cause for not filing return of income within time permitted under section 139(1) of the Act.Once the assessee had been held entitled to claim specifically computed deductions, was not to be burdened with taxes which it was otherwise not liable to pay under law. (AY. 2006-07)