2015 (8) TMI 1507 - AT - Income Tax

Eligibility of deduction u/s.10A - as per revenue assessee simply providing legal services to its clients and not doing any type of business mentioned in Section 10A - CIT-A allowed deduction - HELD THAT - As decided in own case services rendered by the assessee falls under the definition of computer software and it was eligible for deduction u/s.10A of the Act. Nothing was brought by the Department to warrant a different view for the present assessment year. Assessee was carrying on the same business. We are therefore not inclined to interfere with the order of the CIT (A). - Decided against revenue.

Summary

Issues:
- Eligibility for deduction u/s.10A of the Income-tax Act, 1961

Analysis:
The Appellate Tribunal, in this case, dealt with the issue of whether the assessee was eligible for a deduction under section 10A of the Income-tax Act, 1961. The Revenue had filed an appeal, contending that the CIT (A) had allowed the assessee's claim for deduction under section 10A. The Tribunal noted that the assessee had previously been granted a similar deduction in earlier assessment years based on the nature of services provided. The Department argued that the assessee, engaged in providing legal services, did not qualify for the deduction under section 10A. However, the Tribunal, after examining the orders and submissions, upheld the decision of the CIT (A) based on a previous ruling in the assessee's own case. The Tribunal cited that the services provided by the assessee, such as data processing for legal matters, fell within the definition of computer software and were eligible for the deduction under section 10A. The Tribunal found no reason to deviate from its earlier decision and dismissed the appeal of the Revenue, affirming the eligibility of the assessee for the deduction under section 10A.

In conclusion, the Tribunal's judgment focused on the interpretation of the nature of services provided by the assessee in relation to the provisions of section 10A of the Income-tax Act, 1961. The Tribunal relied on its previous decision and held that the services rendered by the assessee, involving data processing for legal matters, qualified as computer software services eligible for the deduction under section 10A. The Tribunal emphasized consistency in its approach and declined to interfere with the CIT (A)'s order, ultimately dismissing the Revenue's appeal.