Section 10A of the Income-tax Act, 1961 - Free Trade Zone (Human Resource Services)

IT : Where assessee-company provide recruitment services to its foreign client using information technology, it would be entitled to benefit under section 10A
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[2014] 51 taxmann.com 453 (Delhi)
HIGH COURT OF DELHI
Commissioner of Income-tax-II, New Delhi
v.
ML Outsourcing Services (P.) Ltd.*
SANJIV KHANNA AND V. KAMESWAR RAO, JJ.
IT APPEAL NO. 1255 OF 2011†
SEPTEMBER  3, 2014
Section 10A of the Income-tax Act, 1961 - Free Trade Zone (Human Resource Services) - Assessment year 2007-08 - Assessee-company was engaged in providing human resource services to a US based company - It claimed deduction under section 10A - Assessing Officer denied deduction alleging that services were that of a recruitment agent and not IT enabled services - It was found that assessee-company provide recruitment services by extensively using information technology - It was using information technology in scanning data, processing it, conducting online tests for short-listed candidate, and analysing their results - Even list of selected candidate also took place using CATS application software - Whether these activities were covered under Notification bearing No. SO 890(E), dated 26-9-2000, i.e., human resource service - Held, yes - Whether, therefore assessee would be entitled to benefit under section 10A - Held, yes [Paras 18 & 19] [In favour of assessee]
Circulars & Notifications : Notification No. SO 890(E), dated 26-9-2000.