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Both the appeals of the Revenue are directed against the respective order of Commissioner of Income Tax (Appeals) - 8 dated 31.03.2016 and pertain to the assessment year 2010-11 & 2011-12. Since, common issue arises for consideration in both appeals we heard the same together and disposing off the same by this common order.

2. Shri V. Nandakumar, the Ld. Departmental Representative submitted that the assessee claimed exemption under Section 10A of the Income Tax Act, 1961 (in short "the Act"), on the ground that it was developing software. According to the Ld. D.R., the assessee has not developed any software. In fact, the software was developed by M/s. Easy Design Systems. The assessee purchased the software from M/s. Easy Design Systems and exported the same. The Ld. D.R., further submitted that the source code for the software remains with M/s. Easy Design Systems. Therefore, the assessee is not entitled for exemption under Section 10A of the Act. Referring to Section 10A of the Act, the Ld. D.R., submitted that Section 10(A) is applicable only in respect of the assessee who manufacture or produce computer software and not for purchasers of the computer software. Referring to the judgment of the Madras High Court in Elgi Ultra Industries Limited (2012) 25 taxmann.com 561 (Mad), the Ld. D.R., submitted that the Revenue has filed a Special Leave Petition before the Supreme Court and the same is pending. The Ld. D.R., placed his reliance on the judgment in the Gujarat High Court in the case of Deepkiran Foods (P) Ltd v ACIT (2014) 46 taxmann.com 415 and submitted that when the computer software were manufactured by other companies, the assessee is not entitled for exemption under Section 10A of the Act. According to the Ld. D.R., the CIT (Appeals) ought not to have followed the judgment of the Madras High Court in M/s. Elgi Ultra Industries Limited (supra).