Binding Directions Not Optional: ITAT Pulls Up AO for Ignoring 10A Mandate

ACIT Vs Rajshri Shah (ITAT Ahmedabad) Assessee, engaged in exporting IT-enabled medical & pharma data-processing services, had originally been allowed deduction u/s 10B. Later, PCIT invoked revision u/s 263 & directed AO to re-examine the 10B claim & also consider the alternate claim u/s 10A. Tribunal, in earlier proceedings in ITA No.925/Ahd/2014, upheld the 263 action only for this limited purpose & issued a binding direction requiring AO to examine Assessee’s 10A claim on merits. In the fresh order passed u/s 143(3) r.w.s 254 on 16.03.2016, AO rejected the 10A claim merely...