9911796707
TMI Blog2014 (12) TMI 1331X X X X Extracts X X X X X X X X Extracts X X X X ..... esent Tax Appeals assailing the following orders Tax Appeal No. Date of Tribunal's order ITA No. Assessment Year 1098/2006 30.11.2004 830/Ahd/2004 1997-98 1099/2006 30.11.2004 831/Ahd/2004 1999-00 1100/2006 30.11.2004 832/Ahd/2004 2000-01 1101/2006 30.11.2004 1219/Ahd/2004 1998-99 1102/2006 30.11.2004 1859/Ahd/2004 2001-02 1878/2005 24.05.2005 3349/Ahd/2004 1999-00 487/2013 30.11.2012 726/Ahd/2010 2007-08 223/2010 16.03.2009 155/Ahd/2009 2002-03 224/2010 16.03.2009 156/Ahd/2009 2004-05 225/2010 16.03.2009 157/Ahd/2009 2005-06 131/2010 10/08/09 1912/Ahd/2009 2006-07 1217/2006 24.05.2005 3350/Ahd/2004 2000-01 321/2007 31.07.2006 1363/Ahd/2006 2001-02 1.1 These matters were admit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... voice or nonvoice messages over licensee's Public Switched Telephone Network in the licensed service area and includes provision of all types of services except for those requiring a separate licence" 4.1 Mr. Patel submitted that the Tribunal committed an error in not appreciating the fact that the assessees are only franchisees providing franchisee service whereas the basic services are rendered by department of telecommunications. He submitted that since the assessees do not provide basic services but carry out franchisee services, they are not eligible for deduction under section 80IA of the Act. 5. Mr. Nitin Mehta, learned advocate appearing for the revenue adopted the submissions made by Mr. Patel and further submitted that the fran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions of the assessees in the cases before it as well as that of the assessee in ITA No. 4355/Mum/03 were identical. The relevant portion of the order dated 12.09.2003 relied upon the Tribunal is reproduced hereunder: "From the perusal of clause-1, it is evident that the EPABX owned by the assessee will provide direct in dialing services through the PSTN of the MTNL. Thus, the services provided by the assessee would come within the purview of basic telecommunication services as per the definition u/s. 2(c) of the Telecommunication Tarrif Order, 1999. From the reading of above clauses of the agreement, it is evident that the assessee is not providing the services as a PCO. From clause 24 of the agreement, it is evident that the STD/PCO can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inition of 'basic telephone service' and therefore they shall be entitled to deduction u/s 80IA of the Act. The Tribunal has not committed any error in reversing the orders passed by the Assessing Officer. The Tribunal had examined all the aspects of the case and concluded that the assessees were providing basic telecommunication service and were entitled to deduction under section 80IA(4)(ii). 8. In view of the above, we answer the question raised in the present appeals in the affirmative i.e. in favour of the assessees and against the revenue. We hold that the Tribunal is right in law and on facts in holding that the assessees who are franchisees of BSNL and who have been permitted to install, maintain and operate in-dialling PABX under ..... X X X X Extracts X X X X X X X X Extracts X X X X
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