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TMI Blog2011 (3) TMI 1333X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee to foreign company because the respondent company was really a subsidiary company in India of the American company from the very beginning of relevant assessment year. We find force in the finding of the Tribunal that the denial of assessee's claim of exemption on the profit earned from the export of computer software under Section 80HHE on technicalities as untenable - Decided in fav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Section 80HHE of the I.T. Act. The assessee- company was formed with two shareholders on 25.11.1999. However, in August, 2000 the company was taken over by an American company through purchase of shares. In the assessment for the year 2001-02 the assessing officer declined the benefit because of the transfer of the undertaking by the original promoters of the respondent-company to an American c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... American company and in fact it is as subsidiary of the American company, the assessee carried on business in development and export of computer software. Therefore since the company was set up only in the previous year relevant for the assessment year 2001-02, and in the very same year, the share transfer took place, the Tribunal held that there was no violation of Section 10A(9). So far as the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1.4.2003 making it clear that on taking over of a company by a foreign company, export exemption on computer software should not be disallowed. The whole purpose of Sections 10A and 80HHE is to promote software development business in India. The Tribunal has decided the issue in favour of the respondent by holding that the company itself was set up in the previous year relevant for the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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