Rental Income from Sublease of Office Premises to be Considered for Section 10A Benefit

Subex Limited Vs. ITO (Karnataka High Court) Karnataka High Court rules rental income from sub-lease of office premises as part of business profits eligible for Section 10A deduction. Facts of the case: Subex Limited (taxpayer), a public limited company, is engaged in the business of development and export of software. The taxpayer is a 100% Export Oriented Unit (EOU) approved by the Software Technology Park of India (STP). The taxpayer had entered into a non-cancelable lease agreement for its branch office in Canada which was used for development of software. A portion...