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2016 (2) TMI 599

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..... ined this issue elaborately and after referring to the Circular issued by the CBDT dated 26.9.2000, found that using information technology in scanning data, processing it, conducting online tests for short-listed candidates and analyzing their results would amount to data processing. We have also gone through the Third Member decision 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 dat .....

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..... tment service by using the information technology. The assessee before the Delhi High Court, was using the Information technology 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 benefit u/s 10A of the Act. 4. The ld. Representative has also placed his reliance on the judgment of Delhi High Court in th .....

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..... , 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 Suneel Verma, ld. Departmental Representative submitted that the main activity of the assessee is to collect market information and data. It is otherwise known as collecting market intelligence. After collecting the data or the market intelligence from the market, the assessee is storing the information and presenting in a table form so as to export the same to t .....

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..... data and processing the same would amount to IT enabled service or not? We have carefully gone through the Circular issued by the CDBT dated 26.9.2000 classifying back office operations and data processing as IT enabled services. The activity of the assessee, as admitted by the Department is as follows: Data Info Gathering Tool This tool is developed by in-house programming experts of Irevna who work on visual basics software to develop a tool that helps in gathering various pre-determined information from various websites and other online internet based sources for the purposes of compiling the required financial model or other reports for the client. Due to the voluminous nature of the data to be gathered and the real time natu .....

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