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8. The learned DR, on the other hand, supported the order of the Assessing Officer.

9. The learned Counsel for the assessee brought our attention to paper book page 20 to 27, which is a letter addressed to the Assessing Officer dated 21/01/2003. It is mentioned that as regard to declaration, valuation, etc. referred to in the letter by the Assessing Officer were within the domain of Reserve Bank of India and FEMA. By not complying with the procedural aspect of export of computer software in non-physical forms, assessee might have committed technical violation of FEMA but nonetheless assessee substantially adhered to the requirements of FEMA regarding the export of customized electronic data. It was submitted that assessee raised invoice on assessee's customers abroad, remittance for the invoice was received through banking channels and the money was received within 180 days of raising the invoice. Hence, assessee satisfied the conditions. It was further submitted that assessee had taken up the matter with the RBI to regularize the requirement of SOFTEX Form etc. which was necessary procedure to be carried out by the assessee. Assessee's representative again brought our attention to paper book page 29, a letter addressed to RBI for regularization of software export in non-physical form. It is mentioned that assessee was in this field of activity since 1995 and started providing data processing services to clients since 1999 and the data is transmitted using telecommunication facilities through internet and all the details are further given. Page 31 is a letter from the Union Bank of India dated 24th January 2003 with regard to the export of software in non-physical form. The letter is addressed to the Deputy General Manager, RBI. It reads as under:

Sub. : Export of software in non-physical form.
In reference to ADMA Series Circular No. 1 dated 8th January, 1999, our exporter customers, M/s. Malhar Information Services have submitted details of software exports made by them in non-physical form for the period January, 1999 to December, 2002.
We are forwarding the said details duly certified by us seeking your permission to regularize the transactions. We may mention here that the said exports could not be declared under SOFTEX forms since the exporters/branch were not aware of the provisions. This anomaly was pointed out by the R.B.I. inspectors during their recent inspection of foreign exchange transactions of our branch.