Tribunal grants appeal for product as end product, allows deduction under section 80-I, rejects challenge to investment allowance.

The Appellate Tribunal allowed the appeal by the assessee, condoning the delay in filing the appeal and overturning the decisions of the lower authorities. The Tribunal held that the assessee's product qualified as an end product, serving the market and meeting the criteria for deduction under section 80-I. Additionally, the Tribunal rejected the Department's challenge to the investment allowance under section 32A(2)(b)(iii), emphasizing the manufacturing process involved and supporting its decision with legal precedents.

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Issues:
1. Delay in filing the appeal by the assessee.
2. Rejection of investment allowance claim under section 80-I by the ITO.
3. CIT(A)'s rejection of the assessee's claim under section 80-I.
4. Tribunal's analysis of the end product status of the assessee.
5. Department's challenge to the allowance of investment under section 32A(2)(b)(iii).

Analysis:
1. The delay in filing the appeal by the assessee was condoned by the Appellate Tribunal due to a typographical error in the date of communication of the order, allowing the appeal to be admitted.

2. The ITO rejected the assessee's claim for investment allowance under section 80-I, citing that the products did not qualify as derivatives of rubber and were not substantially different from the raw product, leading to a disallowance of Rs. 9,24,516.

3. The CIT(A) upheld the ITO's decision, emphasizing that the product did not meet the criteria for deduction under section 80-I, as it was considered an intermediary stage and not an end product, based on the interpretation of relevant legal provisions and precedents.

4. The Tribunal disagreed with the lower authorities, stating that the assessee's product was indeed an end product, as it directly served the market and was utilized by other companies for their final products, such as tires, tubes, etc. The Tribunal drew analogies to clarify the end product status of the assessee's output, overturning the decisions of the Revenue authorities.

5. The Department challenged the allowance of investment under section 32A(2)(b)(iii), arguing that the assessee did not produce a new article or thing qualifying for the investment allowance. The Tribunal rejected this argument, highlighting the manufacturing process involved in producing the rubber compound and referencing legal precedents to support the decision.

Overall, the Appellate Tribunal allowed the appeal by the assessee and dismissed the appeal by the Department, emphasizing the end product status of the assessee's output and the eligibility for investment allowance under the relevant provisions of the Income Tax Act.

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