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TMI Blog2017 (11) TMI 1205X X X X Extracts X X X X X X X X Extracts X X X X ..... tion under section 10A of the Act. In prior assessment years, the Assessing Officer has accepted the claim of the assessee and deductions have been allowed. In the year under consideration, there is no change in the business activity of the assessee, thus, in our view, the principle of consistency also demand that this deduction should be allowed to the assessee. - I.T.A. No. 7065/Del/2014 - - - Dated:- 27-9-2017 - Amit Shukla (Judicial Member) And Waseem Ahmed (Accountant Member) For the Appellant : Anshu Prakash, Senior Departmental Representative For the Respondent : Manoneet Dalal, Advocate ORDER Waseem Ahmed (Accountant Member) 1. This appeal by the Revenue has been directed against the order of the learned Commissioner of Income-tax (Appeals)-XIII, Delhi, dated October 9, 2014 for the assessment year 2010-2011. The Revenue has raised following grounds of appeal : 1. On the facts and in the circumstances of the case and in law, the learned Commissioner of Income-tax (Appeals) has erred in directing to allow the deduction under section 10A of the Income-tax Act amounting to ₹ 53,68,155. 2. The Commissioner of Income-tax (Appeals) has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Income-tax (Appeals) Revenue is in second appeal before us. 7. Both the learned Departmental representative and the learned authorised representative relied on the order of authorities below as favourable to them. 8. We have heard the rival contentions and perused the material available on record. At the outset it was observed that the identical issue came before this hon'ble Tribunal for the assessment years 2008-09 and 2009-10 in I. T. A. Nos. 1410 and 4315/Delhi/2012 in the own case of the assessee where the hon'ble Tribunal was pleased to decide the issue in favour of the assessee vide order dated September 30, 2016. The relevant extract of the order is reproduced below : 4.3 We have heard the rival submissions and perused the material on record including the order of the lower authorities. We find that the learned Commissioner of Income-tax (Appeals) has decided the issue in dispute in paragraph 6.3 of the impugned order with following observations : '6.3 Decision I have very carefully considered the findings recorded by the Assessing Officer and the detailed submissions made on behalf of the appellant. Further, in respect of the findings r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on call tables. This software has the ability to recognise a human voice and then transfer the phone call to any available personnel in the call centre of the appellant. The said personnel then responds to the call being dialed automatically by the predictive dialler software which is transferred automatically to the said person. The predictive dialler software has a web application interface for the personnel to log in and start receiving calls. Thus, it is clear that no manual dialing is being made by the appellant and the calls are being dialed by the predictive dialler software without any human intervention. The Assessing Officer in his order at page No. 8 has himself stated that the appellant uses computers systems connected through dedicated internet lines. It is a known fact that the computer system includes a complete unit along with the hardware, software and other peripheral devices that are necessary to make the computer function. Computer software is an essential element in a computer system so that the computer performs the desired functions in the desired manner. Without computer software, the hardware cannot function on its own. A common example would be Microsof ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to qualify for deduction under section 10A. The process of actually collecting the data need not be IT enabled. What all is required that the data collected should be in an electronic form. ' In the case of the appellant there is no dispute that there is a call centre engaged in managing accounts receivables and recovery, the calls are made by the predictive dialer software and after the call, the inputs of the relevant information obtained from the debtor of the US financial institution is made in the real time system which is trans mitted to the customer outside India electronically using the internet system. Thus, the requirement of a customised electronic data being transmitted outside India electronically stands fulfilled. The Assessing Officer has also mentioned that the appellant is just using the internet lines instead of the traditional telephone lines for making calls to the international customers, the observation of the Assessing Officer are not correct in view of the detailed discussion made about the working of the appellant company. The appellant is not dialing any calls manually. The calls are being dialed by the predictive dialer software automatic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty is specifically covered under the definition of computer software in terms of clause (b) of item (i) of Explanation 2 to section 10A of the Act read with notification number S. O. 890(E), dated September 26, 2000* issued by the Central Board of Direct Taxes. But the Assessing Officer has disputed whether the activity of the assessee can be called as call centre. From the facts elaborated by the assessee there is no dispute that it is a call centre engaged in managing accounts receivable and recovery. The calls are made by the predictive dialer software and after the call the inputs of the relevant information obtained from the data of the US financial institution is made in real time system which is transmitted to the customer outside India electronically using the internet system. In view of the explanation of the assessee, it is evident that customised electronic data is being transmitted outside India electronically. The Assessing Officer has also mentioned that the assessee is using the internet lines for telephone calls to its international customer rather than traditional telephone lines. This observation also supports that the activities of the assessee are in the natur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... New Delhi and the Assessing Officer is therefore directed to allow deduction under section 10A of the Income-tax Act without excluding the telecommunication and insurance expenses from the export turnover. The facts of the case in this year are identical and I tend to agree with the findings given by my predecessor in the appellate order for the assessment year 2009-10. In view of the above, the Assessing Officer is directed to allow the claim of deduction under section 10A of the Act without excluding the communication and insurance expenses from the export turnover and modify the assessment order accordingly. 12. Being aggrieved by the order of the learned Commissioner of Income- tax (Appeals) the Revenue is in second appeal before us. 13. Before us both the learned authorised representative and the learned Departmental representative relied on the order of authorities below as favourable to them. 14. We have heard the rival contentions and perused the materials available on records. At the outset it was observed that a similar issue came up for consideration before this hon'ble Tribunal in the own case of the assessee in I. T. A. No. 1410-4315/Del/2012 for t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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