PCIT v. Wipro Ltd. (2021) 277 Taxman 309/318 CTR 340/197 DTR 349 (Karn.)(HC)/Editorial: SLP granted to the Revenue , PCIT v. Wipro Ltd ( 2022) 286 Taxman 437 (SC)

S. 72 : Carry forward and set off of business losses-Export Oriented undertakings-Declaration in terms of section 10B(8) was to be treated as directory as provision of this section does not provide for any consequence by non-filing of declaration by time limit-Carry forward and set off business losses was allowed to be set off. [S.10B(8)]

Assessee, a software company, filed its original return on due date in which exemption under section 10B was claimed. Thereafter, assessee withdrew said exemption before completion of assessment and filed revised return in which said exemption was not claimed and certain loss was declared.  Assessing officer denied assessee’s claim of carrying forward of losses under section 72, however same was allowed by Tribunal.  On appeal by revenue the Court held  submission of declaration in terms of section 10B(8) was to be treated as directory as provision of this section does not provide for any consequence by non-filing of declaration by time limit.  Since assessee had filed said declaration before completion of assessment, appeal filed by revenue was to be dismissed. Referred  Sambhaji v. Gangabai [2008] 17 SCC 117, Rajendra Prasad Gupta v. Prakash Chandra Mishra [2011] 2 SCC 705 and Ramji Gupta v. Gopi Krishan Agrawal (D) AIR 2013 SC 3099. In State of Bihar v. Bihar Rajya Bhoomi Vikas Bank Samiti [2018] 9 SCC 472, it has been held that if infraction of procedural provision does not provide for any consequences, such a provision has to be construed as directory. In the instant case, section 10B of the Act does not provide for non-compliance of submission of declaration. (AY. 2001-02)