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2. Manufacture or production of computer software also includes customization of a software which requires development of software programme. 'Manufacture' is explained in Section 10B in Expln. (iii) in an inclusive manner. According to Clause (c) of the said Explanation, manufacture includes recording of programmes on any disc, tape, perforated media or other information storage device. Likewise the word 'produce' is explained in Expln. (iv) to include production of computer programmes.
3. Activities carried on by assessee-company to provide services to 'CIC' consisted of two parts. The first part is importing of SAP software. The second part is customization of above software and rewriting the same to make it compatible with clients' specific applications.
2. Asstt. CIT v. Amadeus India (P) Ltd. (2004) 89 TTJ (Del) 301 : (2001) 79 ITD 407 (Del) The words 'computer programme' having not been defined in the IT Act, meaning given in the Copy Right Act may be adopted. Computer programme included 'data processing software' as well. Intent and meaning of the relevant words and expression to be construed broadly, liberally and consistently.
3. Asstt. CIT v. S & S Consultants (P) Ltd. (ITA No. 6508/Bom/1997, dt. 21st Dec., 2001) Software development at clients' site was held eligible for exemption under Section 10A. Held that Section 10A was a beneficial provision and even though billing was done on the basis of candidates supplied, the activities need to be treated as manufacture-produce of computer programme/software.

B. Exemption under Section 10B Notification No. SO 890(E), dt. 26th Sept., 2000 The eligibility for customized electronic data for deduction under Section 10B of the Act has been specifically provided for in Section 10B as amended by Finance Act, 2000. The said amendment operates w.e.f. 1st April, 2001. It has been explained therein that any customized electronic data or any product or service of similar nature as may be notified by the Board, would be included within the meaning of computer software. The Notification No. SO 890(E), dt. 26th Sept., 2000 specifically includes data processing and support centres as well as human resource services for the purposes of Sections 10A, 10B and 80HHE of the Act. It is clear that prior to the issue of notification, such activities were not eligible for deduction under Sections 10A, 10B and 80HHE of the Act. In this context, the following are the observations made by Justice G.P. Singh in Principles of Statutory Interpretation (p. 417, Edn. VIII) "Fiscal legislation imposing liability is generally governed by the normal presumption that it is not retrospective and it is a cardinal principle of tax law that the law to be applied is that in force in the assessment year, unless, otherwise provided expressly or by necessary implication." In the case of Gem Granites v. CIT the Supreme Court has opined that every statute is prima facie prospective unless it is expressly or by necessary implication made to have been retrospective operation. In the case of Tata Consultancy Services v. Union of India , the Karnataka High Court has held that a notification issued on a particular date cannot be made retrospective by judicial interpretation. In the case of Union of India v. Ganesh Das Bhojraj , the Supreme Court has held that the date from which a notification becomes effective is, the date of publication of the notification in the Official Gazette. Such views when read in conjunction with the decision in the case of ISBC Consultancy (supra) would imply in the context of Section 10B that where customization entails production of new software the exemption would be available prior to 1st April, 2001, but, where such customization does not entail actual production of any software, the exemption under Section 10B of the Act would be available only subsequent to the amendment in Section 10B and the issue of notification in this regard.