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2011 (6) TMI 198 - AT - Income TaxProvision of section 55(2)(a) - Since, the assessee had never sold its right to carry on the business of software development or its right to carry on any business and it merely sold a specific sales contract with a client, which is routine outsourcing in all businesses and in the present case, only a specific contract has been outsourced - Further find that the expression from section 55(2)(a) of the Act which is applicable in the instant case "right to manufacture, produce or process any article or thing", and the case of the assessee clearly fell within the purview of section 55(2)(a) of the Act and there is no doubt that the amount received on the sale of the MOU was clearly taxable as per specific provision of the Act - The said expression in section 55(2)(a) of the Act was inserted by the Finance Act, 1997 with effect from 1-4-1998 and hence the contention of the assessee that the amendment to section 55(2)(a) bringing the transfer of commercial right to capital gain tax is effective from the assessment year 2003-04 and 2002-03, is not correct - Do not find any infirmity in the order of the CIT (A) in upholding the order of the Assessing Officer - Decided against the assessee.
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