Wrong section claim does not defeat section 10A deduction when statutory eligibility and past acceptance are established.

Deduction under section 10A was upheld where the assessee was registered under the STPI scheme, had consistently been allowed the claim in earlier scrutiny years, and otherwise satisfied the statutory conditions. The fact that the claim was initially made under section 10B did not defeat substantive entitlement, because the wrong provision cited did not alter eligibility and no contrary finding of non-compliance was shown. The Revenue's objection was rejected and the deduction was sustained.

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Issues: Whether deduction could be allowed under section 10A of the Income-tax Act, 1961 when the assessee had claimed deduction under section 10B; and whether the Revenue could deny the benefit despite the assessee satisfying the conditions for section 10A and having been allowed similar relief in earlier years.

Analysis: The assessee was registered under the STPI scheme and had consistently claimed deduction in earlier years, with the Revenue having accepted the claim in scrutiny assessments for prior years. The claim under the wrong provision did not alter the underlying eligibility, and the record did not show any failure to satisfy the conditions for deduction under section 10A. The consistent acceptance in earlier years and the absence of any contrary finding on eligibility supported the assessee's claim.

Conclusion: The deduction under section 10A was rightly allowed to the assessee, and the Revenue's objection was rejected.

Final Conclusion: The appeal was dismissed and the allowance of deduction to the assessee was sustained.

Ratio Decidendi: Where an assessee is otherwise eligible for a deduction, a claim made under the wrong section does not by itself defeat the substantive entitlement, particularly when the Revenue has accepted the same position in earlier years and no failure of statutory conditions is shown.

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