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2019 (2) TMI 1469 - AT - Income TaxEligibility to deduction u/s 80IA(4)(ii) - available to basic Telecom Services Providers is also available to franchisees of such basic service providers also, which is only putting EPEX system without creating infrastructure in the field of Telecom - HELD THAT:- This issue in favour of the assessee, wherein it has been held that the assessee who are franchisees of BSNL and who have been permitted to install, maintain and operate in dialing EPABX under the franchisees to support the department can be treated to have provided “basic telephone services". This would amount to creation of infrastructure entitling them for deduction u/s 80IA. Relying on authoritative pronouncement of the Hon’ble jurisdictional High Court in the assessee’s own case [2014 (12) TMI 1331 - GUJARAT HIGH COURT] we are of the view that question referred to this Bench deserves to be answered in favour of the assessee, and against Revenue. It is pertinent to observe that the appeal has also been transferred to the Special Bench, therefore, we proceed to deal with the appeal on merits. On perusal of the record would indicate that only substantial issue involved in this appeal is, whether deduction under section 80IA(4)(ii) is available to the assessee or not. Considering the opinion of Special Bench coupled with ratio laid down by the Hon’ble High Court in assessee’s own case, we are of the view that the assessee is entitled for deduction under section 80IA(4)(ii) of the Act. CIT(A) has rightly granted the same to the assessee. - Decided against revenue.
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