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4.2 It is respectfully submitted that the appellant company is engaged in the business of providing 'information and communication technology services' and services related thereto which consist of inter alia, application development and support services, technical help desk support services, on call support services etc. The target clients of the appellant are telecom and software companies such as Nokia Siemens Networks, Westing House, Wipro Technologies Ltd. Wipro InfoTech Ltd, Tech Mahindra. Further the appellant company provides services to Telecom Service Providers (Wireline and Wireless) vendors. The clients of the appellant company also include companies operating in manufacturing and service sectors which use information technology and information ITA Nos. 4277 & 5744/Del/2012 IMSI India Pvt. Ltd.

between sums attributable to eligible units and those pertaining to other units situated elsewhere. In this case it is seen that all eight copies of agreements with I.T. companies filed mention the following dates of agreements:-

Name Address on contract with Date of agreement appellant
(i) Tech Mahindra Ltd. 207, Orchid Square B Block Susant 10.1.2008 Lok, Gurgaon
(ii) Nokia India (P) Ltd. -do- 15,07.2005

often required to be remitted at the site of the client as per the later's requirements, the Software development and maintenance/repair of hardware are the examples of such operations, therefore, the fact that the operation was performed at the client's site does not mean that the work was performed by the client itself because the personnel who worked at client's site remained the employees of the assessee.

22. The ld. Counsel for the assessee drew our attention towards copies of the agreement entered into between the assessee and the clients which are placed at page nos. 251 to 290 of the assessee's paper book and stated that under the agreement the services were rendered by the assessee to the clients, a reference was made to the agreement with Tech Mahindra Ltd. wherein Clause 1.10.1 provides that under the agreement for services entered into by the assessee with M/s Tech Mahindra Ltd., the assessee was required to provide the services of technically qualified and experienced personnel for working on projects and assignments on time and material basis on offshore as well as on-site assignments and that the payment of salaries and all related taxes for the contract would be the sole responsibility of the assessee, therefore, the AO was not justified in holding that assessee's activities could not ITA Nos. 4277 & 5744/Del/2012 IMSI India Pvt. Ltd.

at the sites of the clients as per their requirements for efficiency and maintaining confidentiality. The work performed at the sites of the clients was through the staff of the assessee and not by the clients or their staff. All the personnels who worked at the sites of the clients were the employees of the assessee, those were accountable to the assessee and not to the clients and the assessee was responsible/accountable for the work done by its employees at the site of the clients who entered into agreements for providing the services with the assessee and not with the personnel deputed by the assessee. The copy of the agreement entered into by the assessee with M/s Tech Mahindra is placed at page nos. 251 to 257 of the assessee's paper book, in the said agreement, it is clearly mentioned at page no. 252 & 253that the assessee will provide the services of technically qualified and experienced personnel to Tech Mahindra Ltd. for working and assigning as may be desired by Tech Mahindra ltd. on time and material basis on offshore as well as onsite assignments and that the assessee shall ensure that personnel engaged under this agreement must have appropriate qualifications & competence and in all respects acceptable to Tech Mahindra Ltd. and that the assessee company shall be responsible for making appropriate deduction in respect of ITA Nos. 4277 & 5744/Del/2012 IMSI India Pvt. Ltd.