CYBER BAZAR (INDIA) (P) LTD. NOW KNOWN AS WEBEX COMMUNICATIONS INDIA PVT. LTD. REP. BY ITS MANAGING DIRECTOR SRI. KIRAN A. DATAR Vs. THE ASST. COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) THE assessee is challenging the order of the Appellate Tribunal passed in ITA No. 3151/Bang/2004 dt. 31.3.2005 by raising the following substantial question of law: a) Whether on the facts and in the circumstances of the case, the services provided by the appellant by way of voice mail and teleconferencing services to corporate customers would fall within the definition of "telecommunication services" and, therefore, the profit derived therefrom would be eligible for deduction Under Section 80IA(2A) of the Act?

(2.) THE facts leading to the filing of this appeal are that the appellant -assessee is having a business of providing voice mail and teleconferencing services to corporate bodies. According to the appellant, he has obtained licence from the Department of Telecommunications for the purpose of providing the aforesaid services. That the appellant has made use of high end networking equipment and computer software to provide teleconferencing services to big corporates and that under Section 80 -IA of the Income Tax Act, a special provision giving deduction to the assessee in respect of any profits and gains derived by it from an undertaking or an enterprises that is carrying on such a business is provided. According to the assessee, it is having tele -communication services which is coining within the scope of the section and therefore, he is entitled to the deduction in terms of the said section. For the assessment year 2001 -02, the assessee filed its return of income claiming the said deduction under Section 80 -IA of the Act. The Assessing Officer requested the assessee to justify its claim for deduction and after receiving the response of the assessee, declined to accept the claim of the appellant under Section 80 -IA of the Act by his assessment order dt. 27.2.2004.

(3.) WE have heard the learned Counsel for the assessee and the learned Counsel for the revenue.