9911796707
TMI Blog2016 (11) TMI 285X X X X Extracts X X X X X X X X Extracts X X X X ..... essee - ITA No. 2151/Del/2014 - - - Dated:- 28-9-2016 - SH. H.S. SIDHU, JUDICIAL MEMBER AND SH. O.P. KANT, ACCOUNTANT MEMBER For The Appellant : Ms. Deepika Mittal, CIT(DR) For The Respondent : Sh. Porus Kaka and Divesh Chawla, Advocates ORDER PER O.P. KANT, A.M.: This appeal by the Revenue is directed against order dated 29/01/2014 of the learned Commissioner of Income Tax (Appeals)-XX, New Delhi, for assessment year 2007-08, raising following grounds: i. Whether on the facts and circumstances of the case in law, the learned Commissioner of Income Tax (Appeals) erred in allowing the claim of deduction u/s 10A, amounting to ₹ 38,34,83,407/-, to the assessee without appreciating the detailed reasons gi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act and, therefore, it was not eligible for deduction under section 10A of the Act. 2.1 The learned Commissioner of Income-tax (Appeals), however, deleted the disallowance with following findings: 4.3 In the appellant s own case for AY 2006-07, the Hon ble ITAT Delhi has upheld the order of the ld CIT(A) that the appellant was eligible for deduction u/s 10A. In AY 2002-03, the Hon ble Tribunal has also upheld the order of Ld. CIT(A) allowing the deduction u/s 10A. As regards, AY 2004-05 and 2005-06, it has been clarified that relief u/s 10A has been allowed by the AO himself. The fact in the present case for AY 2007-08 is exactly similar to the facts as in AY 2006-07. Respectfully following the aforesaid decision of the Hon ble ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion implies that the two conditions so mentioned must be cumulatively satisfied in order to be eligible for the deduction. While the Assessee claims itself to be covered under the broader definition of Computer Software and more particularly under clause (b) of Explanation 2 under services of similar nature , the Assessment Order was based on the decisions in S. Gopal Reddy v. State of Andhra Pradesh, K. P. Varghese v. ITO and Indian Hotels Co. Ltd. v. Income Tax Officer and relying upon the purposive approach to interpret the Act reflects that the services are being performed in India and the end product, which is not software within the meaning of Section 10A is being exported outside India and thus not making services of a similar n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s 10A of the IT Act, 1961 read with Notification No. bearing SO 890 (E) dated 26th September, 2000 was upheld. In the above mentioned case, it was observed that, The Board has issued a notification as per the mandate and empowerment under Section 10A and this is not a case of issue of circular under Section 119, which are issued for different purposes and have another purport. Notification is a piece of delegated legislation and to that extent cannot be contrary to the principal enactment nor can it whittle down the effect of the same. Albeit, clause (b) of Explanation 2 to Section 10A has been worded in a manner which enforces the view and the opinion that Legislature, in their wisdom, has left it to the Board to decide which produ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see that all of its business income or profits from business or profession are exempt under section 10A of the Act is correct and the assessee is entitled to exemption and thereby reversed the finding of the AO and directed him to allow the exemption to the whole of assessee‟s profit as computed under the said head 'profit and gains of business.‟ In the present case, the ITAT held that, There is no dispute on the services provided by Assessee. The modus operandi of Assessee, as noted earlier while considering the submissions made before ld. CIT(A), makes it very clear that the assessee was acting as a back office of its parent company by providing customized electronic data as per request received by it from parent co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby specifies the following Information Technology enabled products or services as the case may be for the purpose of said clauses namely :- (l) Back-Office Operations (ii) Call Centres (iii) Content Development or animation (iv) Data Processing (v) Engineering and Design (vi) Geographic Information System Services (vii) Human Resources Services (viii) Insurance claim processing (ix) Legal Databases (x) Medical Transcription (Xl) Payroll (xii) Remote Maintenance (xiii) Revenue Accounting (xiv) Support Centres and (xv) Web-site Services. There is no dispute with respect to th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
