Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (8) TMI 367 - AT - Income TaxDeduction u/s. 80-IA(4)(ii) - telecommunication services - infrastructure facilities - assessee is mere trader in purchasing and selling of internet services or is engaged in providing ISP - business of dealing in bandwidth - network and support services - eligibility to claim deduction where excess of expenditure is more than income - Held that:- A wholesale purchaser of bandwidth, in our opinion, cannot be equated with an undertaking providing infrastructure facilities i.e. broadband network and Internet services. In case of deductions the onus on the assessee is much more higher. Claiming a deduction and filing necessary evidences in its support are not ‘mundane matters’-rather same are the foundation stones of claim of deduction. There is no credible material on record before any of the authorities, including us, to show that procurement and sale of bandwidth represented rendering Internet services as envisaged by the provisions of section 80IA of the Act. No evidence that could prove that the assessee was not engaged in purchase and sale of bandwidth. In short,income earned by the assessee account of sale of bandwidth is not derived from the eligible business and it is not entitled for claiming deduction in that regard. As far as network and support service fees it is found that same were received from RGSL for providing Internet services to its customers in India. It is also found that the assessee had paid similar fees to RDSIPL for installing PoP for rendering Internet services to its customer. Thus,the only income for rendering Internet services is the network and support fee of ₹ 2.21 crores. But if the expenditure of ₹ 3.06 crores on network and support fees paid is considered it would result in a loss on operation of Internet services provided by the assessee. In these circumstances,we are of the opinion that the FAA has rightly held that assessee was not entitled to any deduction u/s. 80 IA of the Act. - Decided against assessee.
|