Section 10B deduction denied for lack of EOU approval; alternate Section 10A claim sent back for fresh examination.

Deduction under Section 10B was unavailable because approval as a 100% Export Oriented Unit from the prescribed Board was a mandatory pre-condition, and that condition was not satisfied. The alternate claim under Section 10A turned on the auditor's certificate in Form 56F under Section 10A(5) read with Rule 16D; as the claim had not been properly considered earlier, the certificate was admitted as additional evidence in the interests of justice and the matter was remitted to the Assessing Officer for fresh examination after hearing the assessee.

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Issues: Whether the assessee was entitled to deduction under Section 10B despite the absence of approval as a 100% Export Oriented Unit, and whether the assessee's alternate claim for deduction under Section 10A could be examined by admitting Form 56F as additional evidence and remanding the matter.

Analysis: Deduction under Section 10B was held to be unavailable because approval by the Board appointed under Section 14 of the Industries (Development and Regulation) Act, 1951 was a mandatory pre-condition, which was not satisfied. On the alternate claim under Section 10A, the requirement was the auditor's certificate in Form 56F under Section 10A(5) read with Rule 16D of the Income-tax Rules, 1962. Since the assessee had originally pursued deduction under Section 10B and the alternate claim had not been effectively considered, the certificate was admitted as additional evidence in the interests of justice, and the matter was remitted to the Assessing Officer for fresh examination of the Section 10A claim after affording an opportunity of hearing.

Conclusion: Deduction under Section 10B was rejected, while the Section 10A claim was restored to the Assessing Officer for fresh decision.

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