The Assessee was a software company who filed its original return on due date in which exemption under section 10B was claimed. Thereafter, assessee withdrew the said exemption before completion of assessment and filed revised return in which said exemption was not claimed and certain loss was declared. The AO denied assessee’s claim of carrying forward of losses under section 72, however same was allowed by Tribunal. Revenue filed an instant appeal against order of Tribunal with the High Court, contending that Tribunal erred in holding that assessee was entitled to said claim of carrying forward of losses even when assessee had filed declaration, after due date of filing original return of income was over. Relying on the decision of State of Bihar v. Bihar Rajya Bhoomi Vikas Bank Samiti [2018] 9 SCC 472, the Hon’ble Karnataka High Court held that the requirement of submission of declaration in terms of section 10B(8) of the Act has to be treated as mandatory whereas, the requirement of submission of declaration by a time limit has to be treated as directory as the provision does not provide for any consequence by non-filing of the declaration by the time limit. Accordingly, since assessee had filed the declaration before completion of assessment, appeal filed by Revenue was dismissed. (ITA No.462 of 2017 dt. 30-11-2020) (AY.2001-02)