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2016 (2) TMI 599 - AT - Income TaxDeduction u/s 10A denied - whether the assessee has to be treated as rendering service in IT enabled service and hence, eligible for exemption u/s 10A? - whether collection of data and processing the same would amount to IT enabled service or not? - Held that:- The majority customers of the assessee are investment banks. The information/data furnished by the assessee is being used in the business activity of the customers, therefore, it is not a mere collection of data as claimed by the Revenue. The Delhi High Court in the case of ML Outsourcing Services (P) Ltd. (2014 (9) TMI 396 - DELHI HIGH COURT ) examined this issue elaborately and after referring to the Circular issued by the CBDT dated 26.9.2000, found that using information technology in scanning data, processing it, conducting online tests for short-listed candidates and analyzing their results would amount to data processing. We have also gone through the Third Member decision in the case of Accurum India (P) Ltd. (2009 (11) TMI 550 - ITAT MADRAS-A). This Tribunal by majority opinion, found that the requirement of sec. 10A is that there should be customized electronic data and such data should be exported outside India. In this case also, the assessee customized the electronic data and it was admittedly exported. This Tribunal is of the considered opinion that processing the data by the assessee would amount to providing IT enabled service, therefore, the assessee is eligible for exemption u/s 10A of the Act. - Decided in favour of assessee
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