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2014 (12) TMI 1331 - HC - Income TaxEntitlement for deduction u/s 80IA - “basic telephone services” provider - whether assessee who are franchisees of BSNL and who have been permitted to install, maintain and operate in-dialling PABX under franchisee to support the department, can be treated to have provided “basic telephone services” entitling them for deduction u/s 80IA? - Held that:- As decided in assessee's own case for the assessment year 1998-99 the assessee have made huge investment in setting up and maintaining the entire PABX. In view of the agreement between the parties which has been minutely considered by this Court, the services provided by the assessee shall fall within the definition of ‘basic telephone service’ and therefore they shall be entitled to deduction u/s 80IA. The Tribunal has not committed any error in reversing the orders passed by the AO. The Tribunal had examined all the aspects of the case and concluded that the assessee were providing basic telecommunication service and were entitled to deduction under section 80IA(4)(ii). Tribunal is right in law and on facts in holding that the assessee who are franchisees of BSNL and who have been permitted to install, maintain and operate in-dialling PABX under franchisee to support the department, can be treated to have provided “basic telephone services” entitling them for deduction u/s 80IA - Decided in favour of assessee.
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