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TMI Blog2016 (2) TMI 599X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act. 3. Shri Sriram Seshadri, ld. Representative for the assessee submitted that the assessee, in the course of its business activity, collected market information and data in various statistical forms and processed the same, therefore, the activity of the assessee would amount to development of software. Referring to the Circular issued by the CBDT in F.No.SO 890(E) dated 26.9.2000, the ld. Counsel submitted that back office operations and data processing are considered to be IT enabled services by the CBDT. Referring to the judgment of the Delhi High Court in the case of CIT vs ML Outsourcing Services (P) Ltd, 51 taxmann.com 453, the ld. Representative submitted that the assessee before the Delhi High Court was providing recruitment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xported out of India. The data which is customized may be gathered either by manual effort or by electronic means. Whatever may be the means of data collection, once it is stored in an electronic form, it becomes a customized electronic data which can be exported to qualify for deduction u/s 10A of the Act. The Tribunal further found that the process of actually collecting the data physically need not be IT enabled service. What all is required is that the data collected should be in an electronic form. In view of this decision of the Third Member, the assessee is eligible for exemption u/s 10A of the Act. The ld. Counsel further submitted that the effect of the Third Member decision is as good as a Special Bench decision, therefore, it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngineers and non-technical persons and they cannot process the data in the computer. Therefore, according to the ld. DR, mere collection of market information and processing the same to the respective customers through internet cannot be classified as data processing. Therefore, the services rendered by the assessee cannot be classified as IT enabled service hence, the assessee is not eligible for exemption u/s 10A of the Act. 7. We have considered the rival submissions on either side and also perused the material available on record. Admittedly, the assessee is collecting data/information and processing the same and then transmitting it to the respective parties. The question arises for consideration is whether collection of data and proc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave also gone through the Third Member decision in the case of Accurum India (P) Ltd. (supra). This Tribunal by majority opinion, found that the requirement of sec. 10A is that there should be customized electronic data and such data should be exported outside India. In this case also, the assessee customized the electronic data and it was admittedly exported. This Tribunal is of the considered opinion that processing the data by the assessee would amount to providing IT enabled service, therefore, the assessee is eligible for exemption u/s 10A of the Act. 10. In view of the above discussion, we are unable to uphold the order of the lower authority and accordingly, the same is set aside. The Assessing Officer is directed to grant exemption ..... X X X X Extracts X X X X X X X X Extracts X X X X
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