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(6) Loss referred to in sub-section (1) of section 72 or sub-section (1) or sub-section (3) of section 74, in so far as such loss relates to the business of the undertaking, being the Unit shall be allowed to be carried forward or set off. (7) For the purposes of sub-section (1), the profits derived from the export of articles or things or services (including computer software) shall be the amount which bears to the profits of the business of the undertaking, being the Unit, the same proportion as the export turnover in respect of such articles or things or services bears to the total turnover of the business carried on by the undertaking :

(i) "export turnover" means the consideration in respect of export by the undertaking, being the Unit of articles or things or services received in, or brought into, India by the assessee but does not include freight, telecommunication charges or insurance attributable to the delivery of the articles or things outside India or expenses, if any, incurred in foreign exchange in rendering of services (including computer software) outside India;
(ii) "export in relation to the Special Economic Zones" means taking goods or providing services out of India from a Special Economic Zone by land, sea, air, or by any other mode, whether physical or otherwise;

(v) "Special Economic Zone" and "Unit" shall have the same meanings as assigned to them under clauses (za) and (zc) of section 2 of the Special Economic Zones Act, 2005.

Explanation 2.--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. 5.3.2 It has been submitted by Ld.Counsel that, on similar facts and circumstances, deduction under section 10A/AA was denied by authorities below in preceding assessment years, by raising identical objections. He submitted that, most of the objections have been addressed by coordinate bench of this Tribunal in assessee's own case for assessment year 2008-09 reported in IBM India (P) Ltd vs JCIT reported in (2014) 46 Taxmann.com 129. Ld.Counsel, submitted that, eligibility criteria are to be tested in the 1st year of claim. In support, he placed reliance upon decision of Hon'ble Karnataka High Court in case of CIT vs Nippon Electronics (India) (P) Ltd reported in (1990) 51 Taxman 187, and decision of Hon'ble Delhi High Court in case of CIT vs Tata Communications Internet services Ltd., reported in (2012) 17 Taxmann.com 241.

11.1. Ld.AO observed that assessee made addition of Rs.69,83,82,63 under the head computer software and claimed depreciation at 60% on the same. Ld.AO called upon assessee to submit details of software purchases.

11.1.1. Assessee, wide submission dated 26/12/2012 submitted that appendix 1 to income tax rules states that 60% depreciation is allowable on computers including computer software. It was submitted that the word, 'including', is to be interpreted as expanding the scope of the word 'computers', to bring within its ambit computer software.