Alternative deduction claim under section 10A allowed where statutory conditions were met despite omission in the return.

An assessee whose deduction claim under section 10B was rejected could still pursue deduction under section 10A as an alternative claim, even though it was not made in the return of income. The record showed STPI registration, the accountant's report in Form 56F, and no factual deficiency in meeting the section 10A conditions after remand. The only objection was the absence of the claim in the original return, but the revenue was required to consider the legally available alternative claim once the initial deduction failed. Deduction under section 10A was therefore allowed on the basis of compliance with the statutory conditions.

---

---

Issues: (i) Whether the assessee was entitled to deduction under section 10A of the Income-tax Act, 1961 as an alternative claim after deduction under section 10B was denied, even though the claim was not made in the return of income.

Analysis: The claim under section 10B was rejected, but the assessee had placed on record the STPI registration and the accountant's report in Form 56F. The first appellate authority examined compliance with the conditions for section 10A and called for a remand report, which did not record any factual deficiency in the assessee's eligibility. The objection raised was only that the claim had not been made in the return. The revenue was required to examine the legally available alternative claim once the original deduction was denied, and the record showed satisfaction of the conditions for section 10A.

Conclusion: The assessee was entitled to deduction under section 10A as an alternative claim, and the revenue's objection failed.

---