The Tax Publishers2020 TaxPub(DT) 4313 (Bang-Trib)

INCOME TAX ACT, 1961

Section 80-IC

Services like installation, training, and support services, etc., had a clear nexus with supply of software and formed integral part of software products supplied by the assessee, therefore, service fees received was to be regarded as profits derived by industrial undertaking and, therefore, eligible for deduction under section 80-IC.

Deduction under section 80-IC - Allowability - Service fee received by assessee engaged in supply of software -

Assessee, engaged in supply of software, claimed deduction under section 80-IC as regards income from service fees. AO held that service fees could not be equated with manufacture of computer software, and therefore, assessee was not entitled to deduction on service fees income. Held: Services like installation, training, and support services, etc., had a clear nexus with supply of software and formed integral part of software products supplied by the assessee, therefore, service fees received was to be regarded as profits derived by industrial undertaking and, therefore, eligible for deduction under section 80-IC.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2013-14



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