TMI Blog2018 (7) TMI 354X X X X Extracts X X X X X X X X Extracts X X X X ..... ce of company such as interest income etc., has been assessed separately which were not claimed u/s 10A of the Act. No doubt this type of income nowhere covered the claim u/s 10A of the Act. The provision of Section 10A of the Act nowhere bar the claim if the work out-sourced. - Decided in favour of assessee. - I.T.A. Nos.219/M/2016 & 752/M/2016 - - - Dated:- 29-6-2018 - Shri Amarjit Singh, JM And Shri G. Manjunatha, AM Assessee by : Shri Jitendra Jain (AR) Department by : Shri Rajat Mittal (DR) ORDER Per Amarjit Singh The revenue has filed the above mentioned appeals against the order dated 29.10.2015 passed by the Commissioner of Income Tax (Appeals)-20, Mumbai [hereinafter referred to as the CIT(A) ] relevant to the assessment years 2010-11 2011-12. ITA NO.219/M/2016:- 2. The revenue has filed the present appeal against the order dated 29.10.2015 passed by the Commissioner of Income Tax (Appeals)-20, Mumbai [hereinafter referred to as the CIT(A) ] relevant to the assessment year2010-11. 3. The revenue has raised the following grounds: - 1. In the facts and circumstances of the case and in law, the Ld. CIT(A) erred in deleting the dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 24/- and discount of ₹ 7,618/-. The expenditure in the P L Account was claimed to the tune of ₹ 7,79,30,162/-. Accordingly, the assessee computed profit before tax at ₹ 6,55,57,591/-. The expenditure of ₹ 7,79,30,162/- debited to the P L Account consists of expenses claimed under various cited which is being mentioned below.: - Direct Rs.4,24,67,055 Personnel Rs.1,88,67,982 Administrative Rs.78,66,179 Selling Rs.48,85,321 Depreciation Rs.12,43,623 Financial Rs.9,19,094 Director s Remuneration Rs.12,00,000 Auditors Remuneration Rs.4,80,908 Total Rs.7,79,30,162 5. The direct expenses of ₹ 4,24,67,055/- comprises freelancer charges of ₹ 4,23,53,669/-, domain charges of ₹ 74,412/- and hosting charges of ₹ 38,973/-. The details of freelancer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the impugned assessment order and material available on record. Appellant is claiming deduction u/s. 10A of the Act for J carrying out IT enabled service activities from its STPI unit. The Appellant engages freelancers who are situated outside India to perform part of its activities$. The Learned Assessing Officer has held that profits derived by activities performed by third party/freelancer are not profits derived by the business of the assessee undertaking and therefore such profits were not eligible for deduction u/s, 10A. It is noted that the deduction u/s 10A is to be allowed on such profit and gains which are derived from the undertaking and which fulfill? criteria prescribed in this regard. The appellant's unit is a 100% export unit and the profits and gain derived pertain to such exports. In carrying put the exports a pan work done by the appellant is out source and it is claimed than it is not the requirement of the section that the deduction which has been claimed in the case of an assesses is not admissible where a part of its activities has been earned out as by other parties. The Assessing Officer has concluded that if a pun of the work has been done by outsi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A. No. 337/M/2007 dated 10.10.10. The factual situation is not in dispute in which the assessee hired the services of freelancers on internet for the work of Transcription, Summarization, Translation, Editing, Proofreading, Data entry which is much related to the business of the assessee. The assessee out- sourced job works activity from freelancers for its main object of business activities. The object of the assessee company covered the job work services of the out-source company freelancers to its object. At the cost of repetition, the assessee company was engaged in the business of Transcription, Summarization, Translation, Editing, Proofreading, Data entry which is an IT enabled service. If the out- source work is connected to the object of the company then in the said circumstances, the out-source work cannot be said separately to the object of the company and the exemption u/s 10A of the Act is not required to be denied only on this basis. However the income from other source of company such as interest income etc., has been assessed separately which were not claimed u/s 10A of the Act. No doubt this type of income nowhere covered the claim u/s 10A of the Act. The provision ..... X X X X Extracts X X X X X X X X Extracts X X X X
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