Law:

Section:

Section 33-A of the Income-tax Act, 1961, read with rule 8A of the Income-tax Rules, 1962 - Development allowance - Assessment year 1967-68 - ITO disallowed assessee's claim for development allowance on ground that certificate from Tea Board, as required under rule 8A(d), had not been filed by assessee along with return - Said certificate was obtained only on if date on which assessment was completed and was thereafter produced before AAC - AAC, however, did not find it sufficient for claiming development allowance - Tribunal remanded case back to ITO holding that production of said certificate along with return was not mandatory and that ITO had discretion to receive certificate after filing of return - Whether when certificate though filed later, was available to ITO, object of section 33A would be defeated by construction that provision in rule 8A requiring certificate to be filed along with return, was a mandatory provision, non-compliance of which would disentitle assessee to claim development allowance under section 33A - Held, yes - Whether, therefore, assessee was entitled to claim development allowance - Held, yes Words and Phrases: Word 'shall' as occurring in rule 8A of the Income-tax Rules, 1962. FACTS The assessee was a plantation company owning tea, coffee and rubber plantations. For the assessment year in question the ITO disallowed the assessee's claim for development allowance under section 33A on the ground that the requisite certificate prescribed under rule 8A had not been filed by the assessee along with the return. The assessee obtained the said certificate from the Tea Board only on, the date on which the assessment was completed. The certificate was produced before the AAC, but that was not found sufficient to entitle the claim for development allowance under section 33A of the Act. The Tribunal held that the term "shall" in rule 8A(d ) was not to be taken as mandatory in nature, that it was only directory and, therefore, non-presentation of the certificate along with the return should not lead to a loss of relief to the assessee. It further held that the ITO had discretion to receive this certificate after the date of the filing of the…

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