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TMI Blog1992 (10) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... al is correct in holding that the I. T. Rules could not fix any time limit for submitting an application in Form No. 10 under rule 17 of the I. T. Rules, 1962 ?" The assessee is an association of hotel owners of Nagpur. It is duly registered under the Societies Registration Act. Its objects are to co-ordinate the activities of hotel owners and to help them in every possible manner in their business. The assessee filed its return of income for the assessment years 1974-75 and 1975-76 in February, 1977. It had claimed exemption as a charitable institution under section 11 of the Income-tax Act ("the I. T. Act"), The exemption was refused by the Income-tax Officer since (i) it was not duly registered with the Commissioner of Income-tax under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ief could not have been refused on the ground of limitation. The Revenue has accepted the finding of the Tribunal about the charitable nature of the assessee but not the finding on the second issue, Hence this reference. Section 11(1) as it stood at the material time excluded from the total income, income derived from property held under trust wholly for charitable purposes to the extent to which such income is applied to such purposes in India. Section 11(2) permitted accumulation of income on fulfilment of the conditions specified therein. One such condition was requirement of its investment/deposit in certain forms/modes. Section 11(2)(a) contemplated a notice in writing to the Income-tax Officer in the prescribed manner specifying the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntext and the purpose. Here is an Act, several substantive provisions of which refer to limitation. Section 11(2) confers certain benefits of exemption to the taxpayer. It prescribes certain conditions for availing of those benefits which are in the nature of safeguards in the interest of proper application of the trust fund. Those conditions include giving of a notice in a prescribed manner. There is no reference to any time factor in it. It is, therefore, very difficult to imagine that Parliament intended to permit whittling down or nullifying that substantive right by prescribing limitation for giving a notice. Power to prescribe the manner of giving a notice is delegated but the provision of delegation is conspicuously silent about the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any time-limit was to be prescribed for the doing of the act, specific words such as 'the time within which' were also necessary to be put in the statute. In Stroud's Judicial Dictionary, it is said that the words 'manner and form' refer only 'to the mode in which the thing is to be done, and do not introduce anything from the Act referred to as to the thing which is to be done or the time for doing it'." In the case of Bharat Barrel and Drum Manafacturing Co. P. Ltd. v. Employees' State Insurance Corporation [1971] 40 FJR 339 ; AIR 1972 SC 1935, the Supreme Court has laid down-though in the context of section 75 read with section 96(1)(b) of the Employees' State Insurance Act, 1948-that the expression "such procedure as may be prescribed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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