COMMISSIONER OF INCOME TAX Vs. MALHAR INFORMATION SERVICES

JUDGEMENT

(1.) This appeal by the Revenue challenges the order dated October 15, 2008, of the Income-tax Appellate Tribunal ("the Tribunal") relating to the assessment year 2003-04. Being aggrieved, the Revenue has formulated the following questions of law for consideration of this court.

(2.) In the first appeal, the Commissioner of Income-tax (Appeals) by an order dated February 28, 2006, allowed the respondent-assessee's claim for deduction under section 80HHE of the Act. This was on the ground that the issue is settled in favour of the respondent-assessee by the order of the Tribunal for the assessment years 1996-97 and 1997-98 and the orders of the Commissioner of Income-tax (Appeals) for the assessment year 1998-99, 1999-2000 and 2000-01.

(3.) The Revenue carried the matter to the Tribunal. The Tribunal, by its order dated October 15, 2008, held that the respondent-assessee is engaged in selling customized electronic data to customers abroad. The respondent-assessee collects the data from various sources and customizes it to meet its client's specific requirement. Thereafter, the customized data is transmitted to its client abroad. So far as the activity of data entry is concerned, the Tribunal held that the same is covered by the notification dated September 26, 2000, issued by the Central Board of Direct Taxes wherein it has been specifically provided that data entry is notified as computer software service under Explanation (b) to section 80HHE of the Act. Further, the Tribunal also relied upon its order dated October 5, 2007--Asst. CIT v. Malhar Information Services, 2013 351 ITR 119 , passed by it for the assessment year 2001-02 holding that the respondent-assessee is entitled to the benefit of deduction under section 80HHE of the said Act.