Export deduction claims must be examined independently; failure under section 10B did not bar fresh consideration of section 10A.

Deduction under section 10B was denied because approval as a hundred per cent export oriented undertaking by the competent statutory board was treated as an essential condition, and no such approval was produced. The taxpayer's export of software was nevertheless recognised as potentially qualifying for deduction under other provisions, so the alternate claim under section 10A could not be disregarded merely because the section 10B claim failed. The matter was remitted for fresh, denovo examination of the section 10A claim on its own merits in accordance with law.

---

---

Issues: Whether the assessee was entitled to deduction under section 10B of the Income-tax Act, 1961 on the basis of STPI registration and whether the alternate claim for deduction under section 10A of the Income-tax Act, 1961 required fresh examination.

Analysis: The claim under section 10B was rejected because approval as a hundred percent export oriented undertaking by the Board appointed under the relevant law was treated as an essential requirement, and such approval was not produced. At the same time, the assessee's business involved export of software, and the availability of deduction for such profits under other provisions was recognised. In that context, the alternate claim under section 10A could not be ignored merely because the primary claim under section 10B failed. The matter was therefore sent back for denovo examination of the alternate claim in accordance with law.

Conclusion: The deduction under section 10B was not allowed, but the alternate claim under section 10A was remitted for fresh consideration. The appeal succeeded only to that limited extent.

Ratio Decidendi: Where a claim for deduction under one export incentive provision fails for want of a statutory approval, an alternate claim arising from the same export activity must still be examined on its own merits if the statutory conditions for that alternate provision may be satisfied.

---