Case Law Details
OnMobile Global Ltd. Vs ACIT (ITAT Bangalore)
Section 80JJAA of the Act allows for deduction of additional wages paid to new workmen for an industrial undertaking. While the term “industrial undertaking” has not been defined in section 80JJAA of the Act, it has been defined in other provisions of the Act; like section 10(15) and 72A so as to include undertaking which is engaged, inter alia, in :
– the manufacture of computer software
– the manufacture of computer software or recording of programme on any disc, tape, perforated media or other information device.
It is seen that the co-ordinate bench of this Tribunal in the case of ACIT V Texas Instruments India (P) Ltd. (2006) 115 TTJ 976, has held that a company that is engaged in development, design and manufacture of software should be considered as being an industrial undertaking for the purposes of section 80JJAA of the Act. As the assessee is engaged in the development and manufacture of software, the assessee is covered within the definition of industrial undertaking.
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