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2020 (9) TMI 972 - HC - Income TaxEligibility of deduction u/s 10A - Whether the services of the assessee were limited to drafting of patent application and their submission to the US patent office and as such the assessee was not entitled to claim deduction? - HELD THAT:- Notification No.890 dated 26.09.2008 specifies that information and technology enabled products or services mentioned in the Notification shall be treated as Information Technology enabled products or services for the purposes of Explanation 2(i)(b) of Section 10A of the Act, which includes Back Office Operations and Data processing as well. The activities of the assessee can be classified as Data Processing, Legal Databases and remote maintenance under the Notification issued by the CBDT. The assessee is transmitting the patent application and related data, which is stored in electronic form and therefore, such data, is customized data and is eligible for deduction under Section 10A of the Act. Therefore, it is evident that assessee is engaged in back office operations, which is prescribed as information technology enabled services in the Notification dated 26.09.2000. It is pertinent to note that the revenue itself has granted the benefit of deduction to the assessee vide order dated 27.01.2006 in respect of Assessment Year 2003-04 under Section 80HHE of the Act, which is a pari materia to Section 10A of the Act. It is well settled legal proposition that tribunal is a fact finding authority and decision on facts rendered by the tribunal can be gone into by High Court only if a question is referred to it, which says the finding is perverse [See: SANTHOSH HAZARI VS. PURUSHOTTAM TIWARI’ [2001 (2) TMI 131 - SUPREME COURT] and SOFT BRANDS (P) LTD.’ [2018 (6) TMI 1327 - KARNATAKA HIGH COURT] ] Concurrent findings of fact recorded by the revenue that assessee is entitled to benefit of deduction under Section 10A of the Act is based on meticulous appreciation of evidence on record. The aforesaid findings, by no stretch of imagination can be said to be perverse. - Decided against revenue.
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