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2013 (2) TMI 404 - HC - Income TaxSoftware expenses - revenue v/s capital expenditure - Held that:- In favour of assessee as decided in COMMISSIONER OF INCOME-TAX Versus VARINDER AGRO CHEMICALS LIMITED [2008 (10) TMI 100 - PUNJAB AND HARYANA HIGH COURT] Since technology is fast changing and day-by-day systems are being developed in a new way, software may be needed like raw material - view taken by the Tribunal that computer software expenses were revenue in nature, is correct - against revenue. Sales tax subsidy & discounts received from customer - ITAT treated it as “business income” & directed the A.O not to exclude 90% of the amount of sales tax subsidy from “profits of business” for the purpose of computing deduction u/s 80HHC - Held that:- Neither the sales tax subsidy nor the profits from discounts on early payments is of similar nature to brokerage, commission, interest, rent or charges, which may allow the revenue to deduct profit to the extent of the 90% of such sum for the purposes of Section 80HHC. The judgment in Ravindranathan Nair's case (2007 (11) TMI 10 - SUPREME COURT OF INDIA), relates to processing charges, which will fall within the expression “charges” which are to be reduced by 90% for the purposes of calculating the export income. Therefore, the aforesaid judgment has no applicability to the issue raised in the present case - no substantial question of law arises for consideration .
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