Court allows appeals, remands matter for fresh decision. Assessing Authority to review thoroughly.

The court allowed both appeals, setting aside the Tribunal's order and remanding the matter to the Assessing Authority for a fresh decision in compliance with the law and the court's observations. The Assessing Authority was instructed to thoroughly review all materials and contentions to ensure a just outcome.

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Issues:
Challenging common order passed by Tribunal for assessment years 1995-1996 and 1996-1997 under Section 10B and Section 80HHC of the Income Tax Act.

Analysis:
The assessee, a company engaged in granite export, filed returns declaring 'Nil' income claiming exemption under Section 10B of the Income Tax Act. The Assessing Authority denied the exemption and determined taxable income under Section 143(3) of the Act. The assessee appealed to the Commissioner of Income Tax (Appeals) and was granted relief under Section 80HHC for granites purchased and exported. The revenue appealed to the Tribunal, which was dismissed. Upon a previous court order remanding the case, the Commissioner of Income Tax (Appeals) rejected the assesse's claims under Section 10B and Section 80HHC. The Tribunal upheld the rejection based on a previous court judgment regarding the assessee's entitlement to exemptions for the assessment year 1994-1995. The assessee contested the Tribunal's decision, arguing that the judgment relied upon was an ex-parte order, and new material supporting the claim was now available. The Revenue contended that unless the assessee establishes the claim for exemption, the previous judgment applies.

The court noted that the previous judgment was based on the absence of a certificate under the Industries (Development and Regulation) Act, 1951, and the non-filing of an audit report, leading to the denial of exemptions. The appellant argued that the required documents were available but not produced earlier, now presented. The authorities had not properly considered the documents post-remand and refused the exemption without reviewing the newly submitted evidence. The court emphasized that documents could be filed before the first appellate authority and directed the assessing authority to reconsider all materials and statutory provisions, considering all contentions raised by the appellant to ensure justice.

Consequently, the court allowed both appeals, setting aside the Tribunal's order and remanding the matter to the Assessing Authority for a fresh decision in compliance with the law and the court's observations. The Assessing Authority was instructed to thoroughly review all materials and contentions to ensure a just outcome.

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