2019 (5) TMI 1390

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....ome from sale of V-SAT equipments amounting to Rs. 3,62,19,389/- for the purpose of deduction u/s 80IA of the Act. 3. At the very outset, the Counsel for the assessee stated that an identical issue arose in AY 2005-06 and the matter travelled upto the Hon'ble Delhi High Court and the Hon'ble Delhi High Court vide order dated 17.05.2012 in ITA No. 284/2011 has remanded the issue back to the ITAT which further remanded back the entire issue to the files of the AO and the AO after verification of the facts as per the directions of the Hon'ble High Court of Delhi has recomputed the deduction u/s 80IA of the Act. 4. The DR fairly stated that since the Hon'ble Jurisdictional High Court has decided the issue, the same should be followed. ....

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....be imported. At page 34 of the description of the items is Codan 40 Wku Bank BUC. According to the assessee these equipments are essential equipments for enabling, assessee to the telecommunication services. The Govt. has put up various restrictions on import of such items because of security reasons. If the assessee is unable to provide these items to its customer then it might not be possible for it to provide telecommunication services. It was pointed out at the time of hearing that these equipments cannot be used for availing the services from any other service provider. The customer has to avail the telecommunication services through these items necessarily from the assessee only. Considering the nature of equipments and their relation....

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....erator sets, air conditioner etc. were sold as a part of a complete package, then the income earned may qualify for deduction u/s 80IA. Therefore, each contract and nature thereof has to be examined. It has to be ascertained whether it was a case of supply of goods or it was a case where the assessee was providing qualifying services which mandated and required inextricably or as an necessary requirement, (under the same contract or under a different contract), sale/supply goods to operationalize and use/provide the telecommunication services. In case, the sale of goods was inextricably linked, had nexus and was connected with the primary purpose of providing or starting telecommunication services, the assessee will be entitled to ....