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30. The assessee herein is engaged in software development services. The question here is whether the said activity will fall under the definition of "manufacture or production" given above? The Ld DRP has expressed the view that the assessee is engaged in the business of development of computer software and it cannot be equated with the manufacture or production of article or thing. Ld DRP further observed that the words "computer software" have been used in different sections of the Act in addition to the words "articles or things", whenever benefit was intended to be extended to such business also. He submitted that the legislature has not intended to include development of software under the category of manufacture or production of article or thing. We also notice that sec.10A uses the expression 'profits and gains are derived by an undertaking from the export of articles or things or computer software". Sec. 10AA uses the expression "profits derived from the export of articles or things or services (including computer software). Similar expression has been used in sec.10B also. The newly inserted provision, viz., sec.115BAB allows concessional rate of tax to a domestic company engaged in the manufacture or production of an article or thing. This section specifically excludes "software development" activity from its ambit.

32. We notice that the above said decisions have been rendered without considering the decision rendered by Hon'ble Supreme Court in the case of N C Budharaj & Co (supra). Further, the Income tax Act did not have definition of the term "manufacture" at that point of time. The expressions used in sec.10A, 10AA, 10B and sec.115BAB (referred supra) have been inserted in the Act subsequently and they bring out the intention of the Government very clear, i.e., the development of computer software is not intended to be included in the expression "manufacture or production of an article or thing".