Appeal dismissed for failure to raise missing auditor's report issue earlier. Waiver of substantial question of law.

The High Court dismissed the appeal, as the issue of the missing auditor's report was not raised earlier in the proceedings before the C.I.T or the Tribunal. The court held that since this issue was not raised at the appropriate stages, it could be deemed as waived, leading to the conclusion that no substantial question of law was involved, resulting in the dismissal of the appeal.

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Issues:
1. Deduction under Section 10A denied by Assessing Officer
2. Appeal by assessee against Assessing Officer's order
3. C.I.T (Appeals) allowing the appeal of the assessee
4. Revenue's appeal against C.I.T's order
5. Omission to file auditor's report not raised before Tribunal
6. Submission regarding auditor's report not agitated before C.I.T or Tribunal
7. Dismissal of the appeal by High Court

Analysis:
1. The primary issue in this case revolved around the denial of deduction under Section 10A by the Assessing Officer to the assessee. The Assessing Officer based the denial on two grounds: firstly, the assessee was not involved in the manufacture of garments, and secondly, the auditor's report was not submitted along with the Return or at the time of assessment.

2. In response to the Assessing Officer's decision, the assessee filed an appeal challenging the denial of deduction. The C.I.T (Appeals) subsequently allowed the appeal of the assessee, citing a judgment from a previous case involving Ektara Export where it was established that stitching of buttons qualifies as a manufacturing activity. However, the C.I.T did not address the issue of the missing auditor's report.

3. The revenue, dissatisfied with the C.I.T's decision, filed an appeal. Interestingly, the matter regarding the omission to file the auditor's report was not raised before the Tribunal during the proceedings. Despite this, the Tribunal upheld the decision of the C.I.T (Appeals) based on the precedent set by the Ektara Export case.

4. During the High Court proceedings, the appellant's advocate highlighted the requirement of filing the auditor's report, which was not raised before the C.I.T or the Tribunal. The High Court, therefore, declined to delve into the factual question of whether the auditor's report was submitted or not, as it was not raised earlier in the proceedings. Consequently, the High Court concluded that since the issue was not raised, it could be considered as given up, leading to the dismissal of the appeal on the grounds that no substantial question of law was involved.

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