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| The Tax Publishers2020 TaxPub(DT) 1431 (Bang-Trib) INCOME TAX ACT, 1961
Section 80-IC
As evident from agreement placed by assessee performing of software services was also linked and had nexus with supply of software and hardware required to run software and, therefore, entire receipts both for supply of software, hardware and services rendered, all being interlinked had to be regarded as profits derived by industrial undertaking from manufacture of goods and assessee was entitled to claim deduction under section 80-IC on service charges, though services agreement was separately entered into by assessee.
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Deduction under section 80-IC - Allowability - Assessee engaged in telecommur cation software development and trading in telecommunication hardware - Revenue from software service
Assessee company was engaged in telecommunication software development and trading in telecommunication hardware required mainly to run its software that were being supplied to prospective consumers. It claimed deduction under section 80-IC AO held that there were two streams of revenue to assessee, viz., software products and liecence and software services and.Held: As evident from agreement placed by assessee performing of software services was also linked and had nexus with supply of software and hardware required to run software and, therefore, entire receipts both for supply of software, hardware and services rendered, all being interlinked had to be regarded as profits derived by industrial undertaking from manufacture of goods and assessee was entitled to claim deduction under section 80-IC on service charges, though services agreement was separately entered into by assessee.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2014-15
INCOME TAX ACT, 1961
section 36(1)(vii) Section 36(2)
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