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Explanation.--For the removal of doubts, it is hereby declared that the profits and gains derived from on site development of computer software (including services for development of software) outside India shall be deemed to be the profits and gains derived from the export of computer software outside India.
xxx (3) For the purposes of sub-section (1), profits derived from the business referred to in that sub-section shall be the amount which bears to the profits of the business, the same proportion as the export turnover bears to the total turnover of the business carried on by the assessee.

xxx (5) Where a deduction under this section is claimed and allowed in respect of profits of the business referred to in sub-section (1) for any assessment year, no deduction shall be allowed in relation to such profits under any other provision of this Act for the same or any other assessment year.

Explanation.-- For the purposes of this section,--

xxx

(c) "export turnover" means the consideration in respect of computer software received in, or brought into, India by the assessee in convertible foreign exchange in accordance with sub-section (2), but does not include freight, telecommunication charges or insurance attributable to the delivery of the computer software outside India or expenses, if any, incurred in foreign exchange in providing the technical services outside India;

17. Sri Percy Pardiwalla, learned senior counsel, has placed reliance on the amendment to this section by introduction of explanation to Section 80HHE of the Act with effect from 1.4.2001 by Finance Act 2001 and the follow up board circular No.3/2004 dated 12.2.2004, clarifying the scope of this amendment and the manner in which the explanation is to be understood and submits that the amendment by way of adding the explanation being more clarificatory and that has to be the meaning attributable to the provisions of section 80HHE[1] of the Act since inception; that therefore it should be understood that in view of the fiction created by the explanation, even assuming there was any ambiguity as to whether the development of computer software onsite in any foreign location by an assessee is a situation where there may be some doubt whether it was so or not, statute has taken care of such situations by creating the fiction and therefore onsite development of computer software [including services of development of software] outside India is only a situation of export of computer software and if so the assessing authority as well as the first appellate authority should not have in any way taken a decision by recording a finding contrary to the statutory provisions.