software development
services are provided by the assessee to its parent company viz.
Key Management Group Inc., USA (KMG US). The software
development services ... technical services
outside India in connection with the development
of software. "Technical services" would mean
making available specialized knowledge or
information
assessee was engaged in
development and export of computer software and
not in providing technical services;
(4) That the CIT (A) was not justified ... specialized after sales services, marketing and
distribution of customized high technology computer systems
and storage devices, computer consultancy and solutions and
software promotion. During
technical services rendered in connection with export of computer software
and export of technical services for the purpose of development or
production of computer software ... testing, installation and
monitoring of software supplied to the client. Though the said services are
technical in nature it does not fall within clause
business acquired certain application software. The
amount is paid for application of software and not system software. The
application software enables the assessee to carry ... technical services rendered in connection with export of
computer software and export of technical services for the purpose of
ITA No.2600/Bang/2018
things or computer
software outside India or expenses, if any, incurred in foreign
exchange in providing the technical services outside India."
18. While computing ... year, it was engaged in
development of computer software and not in rendering any technical
services. Communication expenses were incurred not for export of
computer
been engaged solely in the business of export of computer software or providing technical services abroad in connection with development or production of computer software ... under Section 80HHE , which is exclusively for computing deduction in respect of profit from export of computer software etc. For the reasons stated hereinabove
these expenditures had been incurred by the assessee in relation to
technical services rendered by it outside India and is therefore liable to be
reduced ... expenses incurred
in foreign currency attributable to delivery of computer software for providing
technical services outside India to be excluded both from export turnover
business of software
development, maintenance services and business process outsourcing services and had
three units in operation:
(a) Software development unit in respect of which ... business of software
development, maintenance services and business process outsourcing services and
had four units in operation:
(a) Software development unit ("Leela Galleria unit
Clause (ii) includes development of software. Development of software is service technical in nature and hence is a technical service. CBDT Circular ... skill is technical service. Therefore, 'technical service' in Clause (ii) of Section 80HHE(1) includes 'technical service of software development
charges and foreign travel expenses attributable to delivery of
computer software for providing technical services outside
India to be excluded both from export turnover ... foreign
travel expenses attributed to the delivery of computer
software for providing technical services outside India to be
excluded both from export turnover and total
