Tax Appeal dismissed; Officer to reexamine deductions under sections 10B & 80HHC. Full assessment required.

The Tax Appeal was dismissed, and the Assessing Officer was directed to reexamine both the deduction under section 10B and section 80HHC comprehensively. The Court clarified that the issues should be revisited, taking into account all aspects involved in the assessment for the relevant year.

---

---

Issues involved: Tax Appeal u/s 260A of the Income-tax Act for assessment year 2003-04 regarding deduction u/s 10B and u/s 80HHC.

Deduction u/s 10B:
The Revenue appealed against the remand of the matter by the Income-tax Appellate Tribunal for reconsideration of deduction u/s 10B. The Tribunal observed no dispute about the 100% EOU status from 1.11.2002 and directed the Assessing Officer to work out profits and grant relief in line with CBDT Circular. The Standing Counsel argued for keeping the entire issue open for fresh consideration by the Assessing Officer. The Court clarified that the Assessing Officer should reexamine the matter comprehensively.

Deduction u/s 80HHC:
Regarding deduction u/s 80HHC, the Tribunal remanded the issue to the Assessing Officer for decision in light of an amendment, despite the CIT(A) having already considered and rejected the claim. The Court decided not to formulate any question of law on this issue as it was restored to the Assessing Officer for further review.

Conclusion:
The Tax Appeal was dismissed with the clarification that the Assessing Officer should revisit both deduction u/s 10B and u/s 80HHC afresh, considering all aspects of the issues involved.

---