Tribunal grants Assessee appeal, emphasizing fresh examination of issues and fair opportunity. Remitted for reevaluation.

The Tribunal allowed the Assessee's appeal for statistical purposes, emphasizing the need for a fresh examination of the issues raised. The decision highlighted the importance of considering recent legal precedents and ensuring a fair opportunity for both parties to present their arguments. The matter was remitted to CIT(A) for a reevaluation of the deduction eligibility under sec. 10A and the impact of late filing on the claim.

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Issues:
1. Deduction u/s 10A for profit of EOU in computation of book profits u/s 115JB.
2. Interpretation of provisions for eligible deduction of EOU profit under sec. 115JB.
3. Denial of income reduction under sec. 10A in taxable book profits u/s 115JB.
4. Computation of taxable profit under sec. 115JB.

Analysis:
1. The Assessee, engaged in manufacturing, filed an appeal against CIT(A)'s order for A.Y. 2006-07, seeking deduction u/s 10A for EOU profit in book profits u/s 115JB. CIT(A) partly allowed the appeal. Assessee challenged the denial of deduction, arguing that EOU profit should be considered as per sec. 115JB, not normal provisions. AO rejected the claim, citing Bombay HC's decision. CIT(A) upheld AO's decision based on Ajanta Pharma case, dismissing Assessee's appeal.

2. Assessee's main contention was the computation of taxable profit under sec. 115JB. AO rejected the claim of adjusting EOU profit from book profit, as per normal provisions. CIT(A) relied on Ajanta Pharma case, rejecting Assessee's plea. Assessee argued for deduction based on latest decisions, including Supreme Court rulings and other tribunal cases, challenging the denial of deduction under sec. 10A.

3. The dispute revolved around the interpretation of provisions related to EOU profit deduction under sec. 115JB. Assessee emphasized the eligibility for deduction u/s 10A, while AO and CIT(A) focused on the filing of return beyond the due date. CIT(A) did not address the issue of deduction eligibility due to late filing. Tribunal remitted the matter back to CIT(A) for reconsideration in light of relevant decisions and granted both parties an opportunity to present their case.

4. Ultimately, the Tribunal allowed the Assessee's appeal for statistical purposes, highlighting the need for a fresh examination of the issues raised. The decision emphasized the importance of considering recent legal precedents and ensuring a fair opportunity for both parties to present their arguments. The matter was remitted to CIT(A) for a reevaluation of the deduction eligibility under sec. 10A and the impact of late filing on the claim.

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