| |
| The Tax Publishers2020 TaxPub(DT) 4556 (Bang-Trib) INCOME TAX ACT, 1961
Section 80-JJAA
Software industry has also been notified as industry for purpose of Industrial Disputes Act, 1947, by the State of Karnataka, and, the employees employed in software development industry rendering technical services, and not services in the nature of supervisory or management character, could be duly considered as 'workmen'. Accordingly, no deduction under section 80-JJAA could be disallowed to software industry.
|
Deduction under section 80-JJAA - Allowability - Software industry -
Assessee company, engaged in the business of distributed systems, design and development of hardware and software and digital content creation, claimed deduction under section 80-JJAA. AO rejected claim of assessee on the reasoning that assessee was not engaged in manufacture or production of an article or thing as per the conditions laid down under section 80-JJAA. Held: Software industry has also been notified as industry for purpose of Industrial Disputes Act, 1947, by the State of Karnataka, and, the employees employed in software development industry rendering technical services and not services in the nature of supervisory or management character could be duly considered as 'workmen'. Accordingly, no deduction under section 80-JJAA could be disallowed to software industry.
Followed:Texas Instruments (India) (P) Ltd v. ACIT (2020) 115 Taxmann.com 154 (Bang) : 2020 TaxPub(DT) 2145 (Bang-Trib).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2014-15
INCOME TAX ACT, 1961
Section 80-JJAA
 SUBSCRIBE FOR FULL CONTENT
|