Section 10B deduction claim remanded for fresh examination after questions over competent authority approval and ratification.

Deduction under section 10B was questioned because the requisite approval from the competent authority and supporting ratification had not been produced. The Tribunal noted that the first appellate authority had allowed the claim without verifying the approval framework and, following the cited coordinate bench approach, directed fresh examination by the Assessing Officer. The matter was remitted to determine afresh whether the assessee could otherwise qualify for the benefit under the correct provision after giving a reasonable opportunity and considering relevant material. The claim was therefore not finally sustained, and the issue was sent back for reassessment.

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Issues: Whether the assessee's claim for deduction under section 10B could be allowed without the requisite approval from the competent authority and whether the matter required remand for fresh examination.

Analysis: The assessee's eligibility for deduction was examined in the context of the statutory approval framework and the Revenue's objection that the necessary approval and ratification had not been produced. The Tribunal noted that the deduction had been granted by the first appellate authority without due approval from the competent authority. Following the approach adopted in the cited coordinate bench decision, it considered it appropriate that the claim be examined afresh by the Assessing Officer, including the question whether the assessee could otherwise be entitled to the benefit under the correct provision, after giving reasonable opportunity and considering relevant material.

Conclusion: The claim was not finally sustained and the issue was remitted to the Assessing Officer for fresh adjudication. The result was in favour of the Revenue to that extent.

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