Deduction claim under the correct provision cannot be rejected in reassessment merely because the wrong section was cited earlier.

Where the original return had only been processed under section 143(1), a claim for deduction in reassessment based on the same STPI unit and the same profits could not be rejected merely because the assessee had earlier mentioned the wrong deduction provision. The earlier claim under section 10B did not prevent consideration of eligibility under section 10A, because the reassessment return was filed within time and the issue was not a fresh independent claim after scrutiny assessment. The matter was remitted to the AO to examine the deduction claim on merits in accordance with law.

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Issues: Whether the assessee could claim deduction under section 10A in reassessment proceedings when the original return had claimed deduction under section 10B, and whether the claim could be rejected merely because the wrong provision was mentioned earlier.

Analysis: The original return had been processed under section 143(1) and had not been subjected to scrutiny assessment. The return filed pursuant to notice under section 148 was within time, and the claim under section 10A arose from the same STPI unit and the same profits on which deduction had earlier been sought under section 10B. The claim was therefore not treated as a fresh and independent claim in the sense applicable to a completed scrutiny assessment. The fact that the assessee had mentioned the wrong provision could not by itself defeat a claim otherwise eligible under the correct deduction provision. The earlier refusal to consider the claim on the basis of the reassessment nature of the proceedings was held to be incorrect, and the issue of eligibility was required to be examined afresh on merits.

Conclusion: The assessee was entitled to have its claim for deduction under section 10A considered on merits, and the matter was remitted to the Assessing Officer for fresh adjudication in accordance with law.

Final Conclusion: The appeal succeeded only to the extent of setting aside the denial of deduction and restoring the claim for fresh consideration, leaving the substantive entitlement open for determination by the Assessing Officer.

Ratio Decidendi: Where the original return was only processed under section 143(1), a claim for deduction based on the same source of income cannot be rejected in reassessment merely because the assessee had earlier referred to a wrong deduction provision, and such claim must be examined on its merits.

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