2015 (12) TMI 1792

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....u/s 143(3) and 250 of the Act for the assessment years 2010-11 and 2011-12. As common issue arises for consideration in all these appeals, we heard them together and disposing of the same by this common order for the sake of convenience. 2. At the outset, it was noticed that there is a delay of one day in filing the appeals before this Tribunal in I.T.A.No.379/Mds/2015 and 380/Mds/2015. The Revenue has filed condonation petitions dated 27.3.2015. For the reasons stated therein and in absence of any rebuttal by the assessee, we condone the delay of one day and admit the appeals. 3. The only issue for consideration is disallowance of deduction u/s 10A of the Act. 4. As the facts are common in all the appeals, we narrate the facts of I.T.A.....

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....by the Chartered Accountant after examination of the accounts and records for claiming deduction u/s 10A. The ld. AR explained the assessee's nature of business to the Assessing Officer. In assessment proceedings for assessment year 2011-12, the Assessing Officer summoned Shri Viswanathan Niranjan, Director of the assessee-company and recorded the sworn statement on 29.1.2014. In reply to Question No.3 posed by the ld. Assessing Officer, the Director explained that the assessee receives medical information from foreign clients, process them and exports the processed information back to them. This is a core area of working where the company processes the information. Further explained that the medical information received from foreign client....

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....dated 22.3.1994 under Software Technology Park Scheme of Ministry of Communication and Information technology vide notification dated 13.3.2006 under the category Development of Computer Software and/or services. It has been emphasized that the business of the company being technology enables services in the line of drug development, drug safety and medical writing to clients in the pharmaceutical industry outside India using software packages and tools. The company also uses the data bases, filters to access data, analyze the relevant databases and provide customized content about the drugs, as requested by their clients. The assessee is governed by the rules and regulations of STPI scheme and submits quarterly performance reports. The ass....

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....ocuments clarifying the nature of work of the assessee and produced copy of agreement dated 12.12.2006 entered between the assessee-company and Sify Ltd for hosting services and furnished details of technical know-how and the software owned by the assessee-company by way of flow chart and net working diagram along with information about the nature of works and technical services operated by the qualified persons in processing the data and sending outside the country. The ld. AR argued that exemption u/s 10A of the Act is available for computer software which includes any customized electronic data or any product or service of similar nature as may be notified by the Board which is transmitted or exported from India to any place outside Indi....

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.... of the Assessing Officer. 10. On the other hand, the ld. AR furnished written submissions, paper book and also submission filed before the CIT(A) and relied on the order of the CIT(A). 11. We have heard the rival submissions of both the parties, material on record and the orders of the authorities below and judicial decisions cited supra. The Department has accepted similar claim of the assessee from the assessment year 2006-07 onwards. Now relying on the CBDT circular without having any material to prove that the company is not exporting data services to the pharmaceutical companies and on surmises believed that computer services are not data processing services and there is no primary record available, hence, the assessee-company is no....