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2021 (9) TMI 277 - AT - Income TaxExemption u/s 80-IC - Claim denied as no work was carried at the Baddi Unit - non fulfilling prescribed conditions of claiming deduction u/s 80-IC - HELD THAT:- Assessee is engaged the services of software professionals from sister concern as well as from outside agencies at different rates. The manpower is hired at ₹ 7000/- per day including travelling from sister concerns. This rate is ₹ 9500/- per day for outside agencies. The amount paid to independent professional was ₹ 22.91 Lacs whereas amount paid for manpower hired from sister concern was ₹ 50.10 Lacs - manpower was sourced from various streams viz. independent consultants directly hired by the assessee himself and the manpower hired from sister concerns and outside agencies. This fact has not been fully appreciated by Ld. CIT(A) and hence, the observations that the assessee supplied different names at different point of time and there were inconsistencies in the information supplied by the assessee. These employees were contractual employees whereas the details submitted before Ld. AO was with respect to employees directly hired by the assessee. In the above table, the assessee has specified the nature of work done, details of manpower as well as work sheets showing utilization of the professionals to carry out the work of software development. The sample copies of timesheets have also been placed. Upon perusal of the same, it could be seen that elaborate timesheets have been maintained for time spent by software professionals on various projects. The invoices raised by various agencies for supply of manpower to the assessee has also been placed. It could be seen that these agencies have supplied technical manpower to the assessee to carry out software development work at Baddi. There is no concrete material on record which would suggest that the assessee’s claim was not genuine and no work was carried at the Baddi Unit. The fact that the assessee had one internet connection / AC or inadequate computer facilities or the fact the bank accounts were not maintained at Baddi location is only a matter of perception and nothing conclusive could be borne out of those observations. Assessee had well substantiated its claim of deduction u/s 80-IC - Decided in favour of assessee.
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