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2018 (7) TMI 354 - AT - Income TaxEligibility to deduction u/s 10A - profit derived by the activities performed by third party/freelancers abroad on which the assessee has no control supervision - work outsourced - Held that:- Assessee hired the services of freelancers on internet for the work of Transcription, Summarization, Translation, Editing, Proofreading, Data entry which is much related to the business of the assessee. The assessee out- sourced job works activity from freelancers for its main object of business activities. The object of the assessee company covered the job work services of the out-source company freelancers to its object. The assessee company was engaged in the business of Transcription, Summarization, Translation, Editing, Proofreading, Data entry which is an IT enabled service. If the out- source work is connected to the object of the company then in the said circumstances, the out-source work cannot be said separately to the object of the company and the exemption u/s 10A of the Act is not required to be denied only on this basis. However the income from other source of company such as interest income etc., has been assessed separately which were not claimed u/s 10A of the Act. No doubt this type of income nowhere covered the claim u/s 10A of the Act. The provision of Section 10A of the Act nowhere bar the claim if the work out-sourced. - Decided in favour of assessee.
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