TaxTMI 
TaxTMI 
2017 (11) TMI 1541
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....he assessment year 2007-08. Following grounds have been raised in this appeal: "1. The Learned Commissioner of Income Tax (Appeals) - II, Dehradun ("Ld. CIT(A)") has erred on facts and in law in disallowing the claim of the appellant for deduction u/s 80-IC of the Income Tax Act, 1961 ("the Act") and confirming the assessment at income of INR 1,66,45,050 as made by the Learned Deputy Commissioner of Income Tax, Circle-2, Dehradun, ("Ld. AO"). 2. The Ld. CIT(A) has erred in law and on facts in admitting the additional evidence submitted by the ld. AO holding that the ld. AO has not exceeded the mandate of the remand made by the Ld. CIT(A). 3. The Ld. CIT(A) has erred on facts in not appreciating the business model of the appellant and holding the appellant is engaged in the business of manpower recruitment and supply. 4. The Ld. CIT(A) has erred on facts and law in holding that the appellant is not rendering services in the field of Information and Communication Technology (ICT) industry as required for claiming deduction u/s 80-IC. 5. The Ld. CIT(A) has erred in law and on facts in holding that the business of the appellant is not carried out within the State of Uttar....
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....xure II as Thrust industries as per letter No. 1(10)/2001 - NER of Ministry of Commerce & Industry dated 07.01.2003; 4. Our unit is located at Majra, Subhash Nagar (Opp. Transport Nagar), Dehradun; 5. Building map has been approved by MDDA as Cyber City IT; 6. The unit is registered with District Industries Centre, Dehra Dun and Software Technology Parks of India, Dehradun. 7. Audit Report u/s 80IC on Form 10CCB, has already been submitted. As regards the assessee's claim that its activities are covered under point 13 of Part-C of the Fourteenth Schedule as mentioned in sub section 2(b) of section 801C, it is noticed that the above category envisages the category of eligible activity or article or thing or operation to be "Information and Communication Technology Industry, Computer Hardware, Call Centre." 6. The assessee also summarized the process of acquiring the work contract as under: RESPONSE TO POINT No. 18 Note on the process of getting contracts "The process of soliciting business is by floating the company's work and experience profile to other companies who deploy IT Technology services and require, support services in that field. Industry refe....
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....r the contractor would be responsibility of the assessee. It was also agreed upon by the assessee's client that on selection of a contractor for an onsite assignment, the relevant work permit/visa will be applied for by the assessee and that the charges for professional services payable to the assessee by the client were payable on monthly basis, on time and material basis. The AO discussed the payment schedule in the case of Tech Mahendra Ltd. as under: Jr. Programmer Exp. (0 to 2 yrs) Programmer (exp. 2 to 4 yrs) Analyst (exp. 4 to 6 yrs) Project Leader (exp 6 to 8 yrs) Rs. 35,000/- + Service Tax as applicable Rs. 45,000/- + Service Tax as applicable. Rs. 60,000/- + Service Tax as applicable. Rs. 70,000/- + Service Tax as applicable. Premium Skill. Programmer (Exp. 3 to 5 yrs. Analyst (exp. 5 to 8 yrs.) Project Manager (Exp. 8+) Rs. 50,000/- + Service Tax as applicable. Rs. 70,000/- + Service tax as applicable. Rs. 80,000/- + Service tax as applicable. 8. The AO also pointed out that as per the agreement between the assessee and client, the assessee will raise invoice at the end of the month with relevant time sheets. Ac....
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....uction or commencement of operation as specified therein has to be in the State of Himachal Pradesh or the State of Uttaranchal which means that Information and Communication Technology Industry has to be commenced in the State of Uttaranchal, whereas the assessee's operations , if that can be called to so by the stretch of wild imagination, are taking place at various sites of the clients which are not only outside the State of Uttaranchal but also it can be outside India and most of the operations which were conducted in the State of Uttaranchal were the ground operations like raising invoices and running assessee's establishment in connection with the operations conducted by the assessee's employees on the locations directed by the assessee's client and moreover, the charging of service tax in the invoices raised by the assessee on its clients further confirmed that the assessee is only providing services to its clients, so it cannot be called an industry. 9. As regards to assessee's reliance on the Notification No. 11521 dated 26.09.2000 issued by the CBDT, the AO observed that the said instructions were in respect of Section 10B of the Act which deals with the term "Informati....
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....tinguished the case of MSCO (P) Ltd. vs. UOI reported in AIR 1985 SC 76, 79, relied upon by the AO. The Id. AR has also relied upon a document issued by the Department of Information Technology (IT.), Govt. of India to canvass the view that for the IT. Sector 'industry' would include all the services envisaged for this sector and that the term 'industry' cannot be confined to production or manufacture of goods. It has also been mentioned that NASSCOM also tends to use the term 'industry' for activities peculiar to the I.T. Industry. Thereafter extracts from KPMG's paper on the I.T. Industry prepared for CII in 2008 have also been mentioned for claiming that the activities associated with the I.T. Industry are 'industry'. In similar vein several other papers from reputed organizations have also been cited. (iii) The Id. AR has cited the Notification No. SO890(E) dated 26.09.2000 issued in respect of sections 10A, 10B and 80HHE of the Act to canvass the view that broadly the activities of the appellant are in line with activities envisaged for the I.T. Sector through this Notification. The Id. AR has also attempted to dissect the Id. AO's argume....
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....ed with the appellant. (ii) The Id. AR has also contended that fresh material has been unearthed by the AO which was not before the AO while passing the assessment order, thus, this new material should not be relied upon in appellate proceedings. The Id. AR has relied upon the following cases in support of his contention which may be discussed:- (a) CIT vs. Buildwell Assam (P) Ltd. 133 ITR 736 (Gauh): In this case, the Court had observed that the directions by the superior authority to subordinate authorities must be firm and clear and the subordinate authorities must carry out the directions. From this case law, no infirmity on the part of the AO can be inferred and the Id. AR's contention that the AO exceeded her brief through a more rigorous approach than what was allegedly warranted, is hard to accept since this case law does not intend to fetter the subordinate authority in carrying out the directions of the superior authority. (b) M/s Prime Telesystems Ltd, vs. ACIT (ITA No.630/Del/2010/AY 1999-2000):- In this case, the AO wanted new evidence to be filed which was admittedly difficult for the assessee to adduce. Due to this fact the ITAT held that the AO ha....
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....1 The Assessing Officer has contended that the appellant is providing services in the nature of 'Manpower Recruitment and Supplier' relying upon the data available gathered from a variety of sources such as website of the appellant company, Form No. 3CD of the Audit Report of the relevant financial year, website of the Ministry of Corporate Affairs and service tax registration of the appellant company. 4.2 It is respectfully submitted that the appellant company is engaged in the business of providing 'information and communication technology services' and services related thereto which consist of inter alia, application development and support services, technical help desk support services, on call support services etc. The target clients of the appellant are telecom and software companies such as Nokia Siemens Networks, Westing House, Wipro Technologies Ltd. Wipro InfoTech Ltd, Tech Mahindra. Further the appellant company provides services to Telecom Service Providers (Wireline and Wireless) vendors. The clients of the appellant company also include companies operating in manufacturing and service sectors which use information technology and information technolo....
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....this regard is invited to page 4 of the Assessment Order where the Assessing Officer has reproduced the details of professional services charges. 4.5 The Assessing Officer's finding that the appellant company is engaged in supply of computer skilled personnel is based on a misreading of the services provided by the appellant company to their clients. It is respectfully submitted that merely because specific employees are assigned to work on a particular project, it cannot be concluded that the appellant is engaged in the business of supplying personnel. It would be appreciated that the personnel working on the projects are employees of the appellant company, and not of the clients of the appellant. As already submitted, the appellant is recognized as the employer of such employees, and is therefore responsible to undertake all compliances under various labour laws such as the Employees State Insurance Act, Employees Provident Fund Act. Family Pension Fund Act, Payment of Bonus Act, Payment of Gratuity Act, etc. in respect of these employees. It is the appellant who is fulfilling the obligations of the employer under the said legislations with respect to the personnel hired b....
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....y their very nature have to be rendered through deployment of personnel possessing requisite skills. The fact that such personnel are often required to work onsite at the clients ' premises does not change the nature of the services provided by the appellant company Such services remain ICT services regardless of whether they are rendered through personnel working from the appellants' premises, or through personnel deployed at the clients site. 4.10 The Assessing Officer has in paragraph 5.1.2 of the remand report relied upon the website of the appellant company and concluded that the appellant merely acts as a 'Master Staffing Supplier'. It is most respectfully submitted that in order to derive the true intent and colour of any document, the contents of the documents are to be read in its entirety. It would be appreciated that the website of the appellant company clearly provides that the appellant provides several services relating to the 'Information and Communication Technology Industry'. However, the same has been completely ignored by the Assessing Officer. The profile of the appellant company clearly states that the appellant is in the business of ....
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....de India and to act as advisors or consultants on all matters, aspects and to provide all types of services consequential or incidental thereto'. On the basis of the said clause, the Assessing Officer has concluded that the assessee company 'itself is not engaged in IT services, it is merely providing consultancy services to others'. In this regard, it is humbly submitted by the appellant that a conjunctive reading of the entire 'Object Clause' as cited by the Assessing Officer clearly shows that the appellant is providing 'technical and consultancy services of a multidisciplinary character relating to information technology'. It is respectfully submitted that the conclusion reached by the Assessing Officer is based on incomplete and selective reading of the 'Object Clause' and is, therefore, bad in law. It is respectfully submitted that 'Object Clause ' of a company lays down the various activities which a company may undertake. However, it is not necessary that the company should undertake all the activities/objects specified in the 'Objects Clause'. It is respectfully reiterated that the appellant is engaged in providing inform....
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....ing ICT services, it is respectfully submitted that even if it is assumed that the appellant is engaged in the business of providing 'Human Resource Services' for its clients in the ICT Industry, the appellant would still be eligible to claim deduction under Section 80IC of the Act. It would be appreciated that 'human resource services' is one of the categories of services which have been expressly included within the definition of 'computer software' given in Section 10A of the Act vide Notification No. SO 890(E) dated 26.09.2000 issued by the Central Board of Direct Taxes (CBDT)." 13. The reliance was placed on the following case laws: * ITO vs. Accurum India (P) Ltd. 128 TTJ 249 (Chen) * M. L. Outsourcing Pvt. Ltd. Vs. ITO (ITA No. 1204/Del/2011) 14. The ld. CIT(A) also reproduced the submissions of the assessee on the issues raised by the AO in his remand report at pages no. 18 to 21 which read as under: "5.1 In paragraph 6 of the remand report, the Assessing Officer has contended that the appellant is not eligible to claim deduction under Section 80/C of the Act as the appellant has merely shifted its accounting operations to the State of Utta....
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....he appellant does not dispute the fact that in the STPU setup by it, a proportion of the area has been rented out to other IT companies and the income derived there from is in the nature of 'Income from House Property'. However, as is evident from the Assessment Order dated 23.12.2009, the appellant has not claimed deduction in respect of such income, and the same has been adequately offered for tax under the appropriate head. It is also submitted that a proportion of the area in the STPU is also being used by the appellant for rendering its services to the clients. This fact has also been accepted by the Assessing Officer in the remand report. It is reiterated that the services rendered by the appellant are services relating to the 'Information and Communication Technology Industry', and it is the income derived from such services which has been submitted for deduction under Section 80IC of the Act. In its submissions dated 14.12.2010, the appellant had referred to the details such as invoices, electricity bills, employees recruited, and other such facilities being utilized for rendering such services filed before the Assessing Officer during the assessment proceed....
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....nswers of such 'employees' have not been formally recorded under the relevant provisions of the Act. In fact, such statements or answers have not even been reduced to writing. Hence, the appellant is not in a position to rebut or challenge these 'statements' Even if it is assumed for the sake of argument that the visit of the Assessing Officer was in accordance with law, no opportunity to cross examine was given to the appellant. For that reason also, the allegations made on the basis of the purported 'statements' of the witnesses said to be the employees of the appellant company examined during the visit cannot be relied upon to draw any adverse inference against the appellant. 5.8 In furtherance to the submissions dated 14.12.2010, the appellant humbly submits before your Honour that the appellant is carrying on its business and income generating activities in Dehradun i.e. the state of Uttarakhand. The appellant is in the business of providing 'Information and Communication Technology Services' and has duly registered as a STPU in the state of Uttarakhand. The appellant has three offices at Dehradun, Bangalore and Gurgaon. It is humbly submitte....
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....HE, 10A and 10B of the Act, on-site performance of software operations would be deemed to be manufacture/production of computer software by the unit. Attention in this regard is also invited to Explanation 3 to Section 10A wherein it is provided that profits from onsite development of software outside India would be deemed to be profits from export of computer software outside India. From the aforesaid it can be inferred that the onsite development of software and provision of IT services is covered within the activity /operation "Information and Communication Technology Industry" mentioned at Item 13 in Part C of the Fourteenth Schedule to the Act, for the purpose of Section 80IC ibid. Although the services may be rendered outside the state, the same should in our respectful submission be deemed to have been rendered from the Dehradun STPU within the state of Uttarakhand. 5.11 In paragraph 9 and 9.1 of the remand report, the Assessing Officer has challenged the claim of the appellant for deduction under Section 80IC on the grounds that the appellant company does not fulfill the essential criteria for availing the deduction under Section 80IC. In this regard, it is most respectf....
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....wn as income from house property for which no deduction u/s 80IC of the Act has been claimed for obvious reasons. If the date of commencement of operations to the extent of recruitment and deployment of manpower is actually linked with the date of shifting the registered office to Dehradun on 18.12.2008 then that date would decide the actual commencement of operations for the purposes of satisfying the conditions laid down in Sec. 80-IC of the Act. b) The words "has begun" or "begins" are not new and have been used in a number of sections contained in Chapter VIA. They have been interpreted to mean that the enterprise claiming eligibility for deduction, must already be manufacturing or producing any article or thing or should have newly begun to do so. However, this should be done in the state or geographical boundary for which the section applies. It is understood that large companies resort to segmental reporting of accounts to distinguish between sums attributable to eligible units and those pertaining to other units situated elsewhere. In this case it is seen that all eight copies of agreements with I.T. companies filed mention the following dates of agreements:- Name Addr....
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....and new avatars of the assessee and the construction of STPU had been only a reconstruction of business and not being part of business eligible for claiming deduction u/s 80IC of the Act, and that it would bring the assessee within the ambit of Section 80IC(4) of the Act since the assessee's activity in the State of Uttarakhand were as a result of construction of an already existing business which would deny the benefit of deduction as claimed. The ld. CIT(A) observed that Section 80IC of the Act is specifically designed for the development of hill states of the North-East, Himachal Pradesh and Uttaranchal (Uttarakhand) for the development of relatively unserved region and not specifically for promoting exports or earning foreign exchange. Thus, even though there are many similarities in language between Sections 10A, 10B and 80IC of the Act but the underlying objectives are entirely different in as much as the Section 80IC of the Act is geographically centered in the above mentioned states. Therefore, the liberal definition of "Computer Software" in Sections 10A, 10B and 80HHE of the Act does not mean that the same definition applies to Section 80IC of the Act also. The ld. CIT(A)....
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....carried out outside the State of Uttarakhand and only non-eligible (u/s 80IC of the Act) activities were being carried out in the State of Uttarakhand. He also observed that the assessee though vehemently claimed that all its managerial/supervisory/control functions were being carried out from Dehradun, it was still signing the contracts with the address shown of the Gurgoan office, thereby indicating that the assessee was not accounting for revenues, unit wise but bundling together everything on to the State of Uttarakhand for claiming the deduction u/s 80IC of the Act, on the profits/receipts which had nothing to do with the State of Uttarakhand. According to the ld. CIT(A), the assessee should have accounted for the receipts on the basis of segment by resorting to segmental accounting rather than bunching every receipt with the State of Uttarakhand. The ld. CIT(A) was of the view that the reliance placed by the assessee on Circular No. 694 dated 23.11.1994 in which both offsite and onsite activities had been deemed to be eligible for relief u/s 10A and 10B of the Act also could not have helped the assessee's case. As regards to the contention of the assessee that substantial inv....
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....ence in terms of infrastructure etc. outside Uttarakhand at places like Gurgaon and Bangalore, but instead of apportioning revenues and expenses between all such units, all receipts/profits have been shown at the Dehradun unit as claim eligible for deduction u/s 80IC of the Act." In view of the above, the ld. CIT(A) held that the claim for deduction u/s 80IC of the Act was rightly disallowed by the AO. 20. Now the assessee is in appeal. The ld. Counsel for the assessee reiterated the submissions made before the authorities below and submitted that the assessee made detailed submissions before the ld. CIT(A) on 14.12.2010. A reference was made to page nos. 217 to 312 of the assessee's paper book wherein the reply of the assessee is placed at page nos. 217 to 243 of the paper book. The ld. Counsel for the assessee further submitted that the assessee is a Dehradun based IT Company, engaged in providing support services to IT companies like IBM, Nokia, Wipro, Infotech, Tech Mahindra, Covansys, Nortel etc. through various modes i.e. on-line, on-site or off-site depending on the nature of requirement of the clients. It was also submitted that the various types of services provided by ....
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....yed. It was stated that in the Information and Communication Technology Industry, specific work is often required to be remitted at the site of the client as per the later's requirements, the Software development and maintenance/repair of hardware are the examples of such operations, therefore, the fact that the operation was performed at the client's site does not mean that the work was performed by the client itself because the personnel who worked at client's site remained the employees of the assessee. 22. The ld. Counsel for the assessee drew our attention towards copies of the agreement entered into between the assessee and the clients which are placed at page nos. 251 to 290 of the assessee's paper book and stated that under the agreement the services were rendered by the assessee to the clients, a reference was made to the agreement with Tech Mahindra Ltd. wherein Clause 1.10.1 provides that under the agreement for services entered into by the assessee with M/s Tech Mahindra Ltd., the assessee was required to provide the services of technically qualified and experienced personnel for working on projects and assignments on time and material basis on offshore as well as on-s....
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....) Call Centres; (iii) Content Development or Animation; (iv) Data Processing; (v) Engineering and Design; (vi) Geographic Information System Services; (vii) Human Resource Services; (viii)Insurance Claim Processing; (ix) Legal Databases; (x) Medical Transcription; (xi) Payroll; (xii) Remote Maintenance; (xiii)Revenue Accounting; (xiv) Support Centres, and (xv) Web-site Services. 24. The ld. counsel for the assessee stated that broadly the activities of the assessee are in the line with activities envisaged for the IT sector, in the aforesaid notification. It was contended that the said notification established that even the CBDT recognized the Information Technology includes products as well as services. It was further contended that it is trite that the beneficial provision should be liberally construed. It was emphasized that the business activities of the assessee commenced in the State of Uttarakhand as required u/s 80IC of the Act and personnel had been deployed at the sites of various IT companies/clients for performing assigned IT tasks under the control of the assessee, in support of the above, our attention was drawn towards the reg....
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....heir respective orders. It was further submitted that the assessee was not an industry but a service provider, therefore, it was not eligible for deduction u/s 80IC of the Act and the AO rightly disallowed the claim of the assessee. Therefore, the ld. CIT(A) was fully justified in confirming the order passed by the AO. 27. We have considered the submissions of both the parties and carefully gone through the material available on the record. In the present case, it is an admitted fact that the assessee was engaged in supplying personnel possessing computer skills to its clients. The assessee claimed the deduction u/s 80IC of the Act. The provisions contained in the said section read as under: "80-IC. (1) Where the gross total income of an assessee includes any profits and gains derived by an undertaking or an enterprise from any business referred to in sub-section (2), there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction from such profits and gains, as specified in sub-section (3). (2) This section applies to any undertaking or enterprise,- (a) which has begun or begins to manufa....
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....nding before the 1st day of April, 2007, in any of the North-Eastern States. (3) The deduction referred to in sub-section (1) shall be- (i) in the case of any undertaking or enterprise referred to in sub-clauses (i) and (iii) of clause (a) or sub-clauses (i) and (iii) of clause (b), of subsection (2), one hundred per cent of such profits and gains for ten assessment years commencing with the initial assessment year; (ii) in the case of any undertaking or enterprise referred to in sub-clause (ii) of clause (a) or subclause (ii) of clause (b), of sub-section (2), one hundred per cent of such profits and gains for five assessment years commencing with the initial assessment year and thereafter, twenty-five per cent (or thirty per cent where the assessee is a company) of the profits and gains. (4) This section applies to any undertaking or enterprise which fulfils all the following conditions, namely:- (i) it is not formed by splitting up, or the reconstruction, of a business already in existence : Provided that this condition shall not apply in respect of an undertaking which is formed as a result of the re-establishment, reconstruction or revival by the assessee of th....
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....he specified period i.e. from 7th Day of January, 2003 to April 2012 and perform the functions as are mentioned in Schedule Thirteenth or Schedule Fourteenth. The function/operation provided in Schedule Thirteenth relates to the manufacturing or production of any article or thing specified in that Schedule but the assessee is not engaged in such activities, so the operation undertaken by the assessee does not fall in Schedule Thirteenth. Now we have to examine as to whether the assessee falls in the definition of industry or it is doing the operation specified in Schedule Fourteenth. The term "industry" is not defined in the Income Tax Act, however, the Hon'ble Supreme Court in the case of National Union of Commercial Employees Vs M. R. Meher, Industrial Tribunal, Bombay (supra) held that the concept of industry covers the production of goods as well as rendering of services, in the said case, it has been held as under: "It would be realised that the concept of industry postulates partnership between capital and labour or between the employer and his employees. It is under this partnership that the employer contributes his capital and the employees their labour and the Joint cont....
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....Asset Management & Maintenance, Telecom Software & Hardware Installation, Facility Management Services, Technical Help Desk Support, Domino Servers Support and On call support services etc. For providing the above said services, the assessee entered into contract with the various clients and the specific work was required to be done at the sites of the clients as per their requirements for efficiency and maintaining confidentiality. The work performed at the sites of the clients was through the staff of the assessee and not by the clients or their staff. All the personnels who worked at the sites of the clients were the employees of the assessee, those were accountable to the assessee and not to the clients and the assessee was responsible/accountable for the work done by its employees at the site of the clients who entered into agreements for providing the services with the assessee and not with the personnel deputed by the assessee. The copy of the agreement entered into by the assessee with M/s Tech Mahindra is placed at page nos. 251 to 257 of the assessee's paper book, in the said agreement, it is clearly mentioned at page no. 252 & 253that the assessee will provide the servic....
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....git 1. Floriculture - - 0603 or 060120 or 06029020 or 06024000 2. Medicinal herbs and aromatic herbs, etc., processing - - 3. Honey - - 0409004 4. Horticulture and agro-based industries such as (a) Sauces, ketchup, etc 21.03 15135 to 15137 and 15139 (b) Fruit juices and fruit pulp 2202.40 (c) Jams, jellies, vegetable juices, puree, pickles, etc. 20.01 (d) Preserved fruits and vegetables (e) Processing of fresh fruits and vegetabl es including packaging (f) Processing, preservation, packaging of mushrooms 5. Food Processing Industry excluding those included in the Thirteenth Schedule 19.01 to 19.04 6. Sugar and its by-products - - 17019100 7. Silk and silk products 50.04 50.05 17116 8. Wool and wool products 51.01 to 51.12 17117 9. Woven fabrics (Excisable garments) - - 6101 to 611710 10. Sports goods and articles and equipment for gene....
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....n'ble Supreme Court held as under: "The expression 'industry' has many meanings. It means 'skill', 'ingenuity', 'dexterity', 'diligence', 'systematic work or labour', 'habitual employment in the productive arts', 'manufacturing establishment' etc. But while construing a word which occurs in a statute or a statutory instrument in the absence of any definition in that very document it must be given the same meanings which it receives in ordinary parlance or understood in the sense in which people conversant with the subject matter of the statute or statutory instrument understand it. It is hazardous to interpret a word in accordance with its definition in another statute or statutory instrument and more so when such statute or statutory instrument is not dealing with any cognate subject." 32. The Hon'ble Apex Court in the case of Bangalore Water Supply & Sewerage Board Vs A. Rajappa (supra) clearly held that the word "industry" also includes the distribution of goods and services. Therefore, it can safely be held that the activities undertaken by the assessee falls in the definition of the industry to which the provis....
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.... at Dehradun in State of Uttaranchal. 34. The CBDT issued a Circular No. 694 dated 23.11.1994 (copy of which is placed at page no. 451 of the assessee's paper book) vide which a clarification has been issued regarding tax holiday under Sections 10A and 10B of the Act for the units producing computer software in Export Processing Zones or Software Technology Parks. The said circular reads as under: "Since computer programmes are not physical goods but are developed as a result of an intellectual analysis of the systems and methods followed by the purchaser of the programme, it is often prepared on-site, with the software personnel going to the client's premises. Doubts have been raised whether units taking up such production of software at the client's premises would be eligible for the tax holiday. The Government's policy on tax incentive to software exports is reflected in the provisions of section 80HHE introduced in 1991. Under this provision, technical services provided outside India, for the development or production of computer software, are included for the purpose of the tax incentive. Similarly, for the purpose of section 10A or 10B, as long as a unit ....