Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (2) TMI 599 - ITAT CHENNAI

2016 (2) TMI 599 - ITAT CHENNAI - TMI - Deduction u/s 10A denied - whether the assessee has to be treated as rendering service in IT enabled service and hence, eligible for exemption u/s 10A? - whether collection of data and processing the same would amount to IT enabled service or not? - Held that:- The majority customers of the assessee are investment banks. The information/data furnished by the assessee is being used in the business activity of the customers, therefore, it is not a mere colle .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n in the case of Accurum India (P) Ltd. (2009 (11) TMI 550 - ITAT MADRAS-A). 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 i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s to assessment year 2007-08. 2. The only issue arises for consideration is disallowance of claim made by the assessee u/s 10A of 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

gy in scanning the data, processing it, conducting online tests for short-listed candidates and analyzing their results. The Delhi High Court, after referring to the notification of the CBDT dated 26.9.2000, found that the assessee was not providing any recruitment service but it was using the information technology in scanning data, processing it, conducting online tests for short-listed candidates and analyzing their result. The Delhi High Court found that the assessee is entitled for the bene .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ive submitted that software is not a mere knowledge but it is a knowledge recorded in a physical form having a physical existence, taking up space on a tape, disc or hard drive, making physical things happen and can be perceived by senses. The Tribunal further found that the requirement of sec. 10A is that there should be a customized electronic data and such date should be exported out of India. The data which is customized may be gathered either by manual effort or by electronic means. Whateve .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Counsel further submitted that the effect of the Third Member decision is as good as a Special Bench decision, therefore, it is binding on this Bench. For this proposition, he placed his reliance on the judgment of the Delhi High Court in the case of P. C. Puri vs CIT, 151 ITR 584. 5. In view of the above, the ld. Representative submitted that the assessee has to be treated as rendering service in IT enabled service and hence, eligible for exemption u/s 10A of the Act. 6. On the contrary, Shri S .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

which are quite different from data processing. Therefore, according to the ld. DR, collecting market information and presenting the same before the respective customers would not constitute data processing so as to call as IT enabled service . Presenting the information through electronic means to the customer is only a medium of transmission and communication, therefore, the remuneration received by the assessee is predominantly for collection of information/data and not for processing the sam .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

essee 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 processing the same would amount to IT enabled service or not? We have carefully gone through the Circular issued by the CDBT date .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version