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TMI Blog2020 (11) TMI 963X X X X Extracts X X X X X X X X Extracts X X X X ..... #39;s activity of human resources services are IT enabled services, when the assessee was only making available the data base of qualified IT personnel and entitled to 3deduction u/s. 10A of the Act and recorded a perverse finding? (ii) Whether the Tribunal on the facts and circumstances of the case and in law was correct in holding that the assessee's activity of human resources services are IT enabled services, when the assessee was only making available the data base of qualified IT personnel and entitled to deduction under Section 10A of the Act and recorded a perverse finding? 2. The factual background, in which the aforesaid substantial questions of law arise for consideration in this appeal needs mention. The assessee is a pri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of the Act seeking rectification of the mistake. The tribunal by an order dated 01.03.2013 held that the finding recorded by the tribunal in the previous order is erroneous and the same requires re-adjudication. Therefore, the order dated 25.05.2012 was recalled. Thereafter, the tribunal by an order dated 21.06.2013 inter alia held that transmitting the data of qualified Information Technology personnel is human resource services and Information Technology enabled services. Accordingly, the appeal preferred by the assessee was allowed and the appeal preferred by the revenue was dismissed as infructuous. In the aforesaid factual background, this appeal has been filed. 4. Learned counsel for the revenue submitted that the assessee is not e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is also urged that tribunal recorded a finding of fact for the first time that the assessee engaged in the training and recruitment, which was not even the case of the assessee, which is evident from the reply submitted by the assessee before the Assessing Officer as well as the Commissioner of Income Tax (Appeals). It is also urged that the order requires reconsideration in view of law laid down by Supreme Court in ML OUTSOURCING SERVICES (P.) LTD. supra. It is also pointed out that the assessee during the course 8of hearing submitted that it is imparting training to its own employees also. Therefore, possibility of training expenses referred to by the tribunal may have been incurred by the assessee for training its own employees. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... INCOME-TAX-VIII VS. M/S KIRAN KAPOOR', (2015) 57 TAXMANN.COM 39 (DELHI) and in the case of 'COMMISSIONER OF INCOME TAX-14 VS. MALHAR INFORMATION SERVICES', 351 ITR 119 (BOM). 7. We have considered the submissions made by learned counsel for the parties and have perused the record. Section 10A of the Act deals with special provision in respect of newly established undertaking in Free Trade Zone (FTZ) and provides for deduction. The relevant extract of Section 10A reads as under: 10A. (1) Subject to the provisions of this section, a deduction of such profits and gains as are derived by an undertaking from the export of articles or things or computer software for a period of 10 consecutive assessment years beginning with the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nature as may be notified by the Board. Thus, the Legislature has empowered the Board to notify the products or services of similar nature which would be covered under clause (b) and treated as 'customized electronic data' and also, 'any product or service of similar nature'. The Board has issued a Notification dated 26.09.2000 and the aforesaid Notification admittedly contains human resources as well as Information Technology enabled product or services. The relevant extract of the Notification, is reproduced below for the facility of reference: In exercise of the powers conferred by clause (b) of item (i) of Explanation 2 of section 10A, clause (b) of item (i) of Explanation 2 of section 10B and clause (b) of Explanation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of Income Tax (Appeals) has also found that the assessee is in the business of supply of manpower from India to its Foreign clients after their recruitment in India. Thus, irrespective of the fact whether or not the assessee provides training to its employees or to the employees who are recruited by its clients, since, the assessee is engaged in providing human resource services, its case is squarely covered by Notification dated 26.09.2000. Therefore, the assessee is entitled to the benefit of deduction under Section 10A of the Act. In view of preceding analysis, the substantial questions of law framed by a bench of this court answered against the revenue and in favour of the assessee. In the result, we do not find any merit in this appe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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