TaxTMI 
TaxTMI 
2020 (11) TMI 653
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....peal was admitted by a bench of this Court vide order dated 21.03.2014 on the following substantial question of law: (i) 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 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....
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....AND ANR. VS. M/S TATA ELXSI LTD AND ANR.', I.T.A.NO.386, 387 & 388/2015 DECIDED ON 15.02.2016 held that income reduced from export turnover has to be reduced from total turnover. The assessee thereupon preferred an appeal under Section 254(2) 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 pref....
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.... activity undertaken by the assessee does not fall within the aforesaid expression interpreted by the Delhi High Court and in view of law laid down by Delhi High Court, the activity of the assessee cannot be treated as human resource services. It 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 d....
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..... In support of aforesaid submissions, reliance has been placed on decision of Delhi High Court in 'COMMISSIONER OF INCOME TAX-II, NEW DELHI VS. M/S M.L.OUTSOURCING P. LTD.', IN ITA NO.1255/2011 DATED 03.09.2014, 'COMMISSIONER OF 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....
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....h undertaking begins to manufacture or produce such articles or things or computer software. The expression 'computer software' has been defined in Explanation 2 to Section 10A and provides that the same means even any customized electronic data or any product or service of a similar 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 pr....