Tribunal directs reassessment, affirms assessee's right to fair hearing.

The Tribunal set aside the lower authorities' orders and directed the Assessing Officer to re-decide the issues in line with the law and previous tribunal rulings. The AO was instructed to afford the assessee a fair chance to present their case. Consequently, both appeals by the assessee were allowed for statistical purposes.

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Issues:
Challenging disallowance under section 80IC of the I.T. Act, confirming disallowance of depreciation, and confirming disallowance of manufacturing expenses.

Analysis:
1. The appeals by the assessee were directed against common orders of the Ld. CIT(A), challenging various disallowances. The appeals were time-barred, but the delay was condoned. The assessee, a Private Limited Company engaged in manufacturing, claimed deduction under section 80IC. However, the Assessing Officer (A.O.) found discrepancies during a survey, indicating no manufacturing activity. The A.O. disallowed manufacturing expenses and depreciation claimed on machinery. The A.O. also disallowed carrying forward losses due to lack of manufacturing activity.

2. The assessee challenged these additions before the Ld. CIT(A), providing evidence of manufacturing activities. The Ld. CIT(A) rejected the claims under section 80IC, manufacturing expenses, and depreciation but allowed carry forward of business losses. The assessee cited previous tribunal orders supporting their manufacturing activities.

3. The Learned Counsel for the Assessee argued for a reconsideration, pointing out inconsistencies in the inspection reports and the allowance of losses in previous years. The Ld. CIT(A) allowed carry forward of losses in previous years, indicating manufacturing activity. The matter was deemed to require further investigation by the A.O. in light of previous tribunal orders.

4. The Tribunal set aside the orders of the authorities below and directed the A.O. to re-decide the issues in accordance with the law and previous tribunal orders. The A.O. was instructed to provide a fair opportunity for the assessee to present their case. Ultimately, both appeals of the assessee were allowed for statistical purposes.

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