Deductions – Sec. 80HHE – Export of computer software

Last updated: 07 June 2008

Court :

Brief :
Assessee carrying on software export as well as domestic business – Assessee maintained independent and separate books of account for export and domestic sale – Deduction needs to be computed considering only the export business –A.Y. 1993-94

Citation :
Datamatics Ltd. vs. ACIT (2008) 110 ITD 24 (Mum); Order dated 14-2-2007

Assessee was exporting computer software manufactured in SEEPZ unit. It was keeping separate accounts and entire activity in this Zone was independent of other business. There was no overlapping and mingling of services or any link between the manufacturing activities. Section 80HHE refers to profits derived from export of computer software and hence, the turnover for the purpose of computation of deduction u/s. 80HHE had to be worked out on the basis of export turnover alone.