S. 246A — An order giving effect to the order of CIT(A) is an assessment order and therefore it is amenable to the jurisdiction of the CIT(A).

While assessing the total
income of the assessee u/s.147 of the Act, the Assessing Officer (AO) disallowed
deduction u/s.10A in respect of Unit I and Unit III. Aggrieved the assessee
preferred an appeal to the CIT(A) who held that Unit I is not entitled to
deduction beyond A.Y. 1998-99. As regarded deduction u/s.10A with regard to STPI
Unit III, he held that business of STPI Unit III was not set up by splitting of
any existing business and he directed the AO to allow deduction u/s.10A in
respect of STPI undertaking unit III, if other conditions are satisfied.

The AO while giving effect
to the order of the CIT(A) computed deduction u/s.10A of the Act by reducing
data link charges from export turnover of the undertaking, but he did not deduct
the same from the total turnover of the undertaking. As a result, the deduction
u/s.10A was reduced.

Aggrieved the assessee
preferred an appeal to the CIT(A) who dismissed the appeal without admitting the
same.

Aggrieved, the assessee
preferred an appeal to the Tribunal.

The Tribunal noted that the
ITAT ‘A’ Bench has in ITA No. 1122/Bang./09, Asiatic Industrial Gases Ltd., to
which the Accountant Member was a party, after referring to various decisions of
the High Courts, held that order of the AO giving effect to the direction given
by the ITAT is appealable before the CIT(A). The Tribunal allowed this ground
and remitted the matter back to the file of the CIT(A) for adjudication on
merits.