Deputing manpower abroad for software development eligible for tax exemption: K'taka HC
Bengaluru: The High Court of Karnataka has set aside three reassessment notices of the Income Tax Department against EIT Services India Ltd (formerly Hewlett Packard) for three assessment years issued by the Income Tax Department and ruled that deputing manpower abroad for software development is eligible for tax exemption under Section 10A of the IT Act.
The Commissioner of Income Tax (CIT), Bengaluru had ordered for the re-examination of the claim for deduction under Section 10A/80HHE of the Income Tax Act for the assessment years 2005-06, 2006-07 and 2007-08 on the ground that ''part of the petitioner's profits was related to rendering technical services outside India which was not eligible for deduction.''
The company filed three writ petitions challenging the re-assessment notices which was heard by the bench of Justice S Sunil Dutt Yadav.
The HC in its judgement on December 19 cited a circular issued by the Ministry of Finance in 2013 which clarified that ''expenditure incurred for services to develop software outside India could be allowed under Section 10A of the IT Act if deputation is for development of software.''
The HC in its judgement said, ''It is clear that the clarification stipulates that the benefits under Section 10A deductions can be availed of, if there exists a direct and intimate nexus or connection between the development of software abroad with the eligible units setup in India.'' Citing the circular, the HC also noted that deputing technical manpower abroad is not detrimental to benefits of exemption under Section 10A of the IT Act. The HC said that in this present case the clarification issued in the circular was relevant.
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Sambhal violence: Prohibitory orders issued, outsiders barred from entry till Nov 30
Sambhal (UP) (PTI): The district administration has imposed prohibitory orders and barred the entry of outsiders till November 30 after three men were killed and scores of others, including security and administration personnel, injured in a violence by protesters opposing a court-ordered survey of a Mughal-era mosque.
The order has been issued under provisions of the Bharatiya Nyaya Sanhita (BNS), said District Magistrate Rajender Pensiya late on Sunday.
"No outsiders, other social organisations or public representatives will enter the district border without the permission of the competent officer," said the order, which came into force with immediate effect.
Violation of the order will be punishable under Section 223 (disobedience to order duly promulgated by public servant) of the BNS.
Violence broke out in the district on Sunday as protesters opposing the survey of the Jama Masjid clashed with security personnel. The protesters torched vehicles and pelted the police with stones while the security personnel used tear gas and batons to disperse the mob.
Divisional Commissioner (Moradabad) Aunjaneya Kumar Singh said on Sunday, "Shots were fired by miscreants... the PRO of the superintendent of police suffered a gunshot to the leg, the circle officer was hit by pellets and 15 to 20 security personnel were injured in the violence."
A constable also suffered a serious head injury while the deputy collector fractured his leg.
"Three people, identified as Naeem, Bilal and Nauman, have been killed," Singh said.
Twenty-one people, including two women, have been detained and a probe has been launched, the official had said, adding that those accused in the violence would be booked under the stringent National Security Act (NSA).
District Magistrate Rajender Pensiya said, "The casualty count stands at three. The reason for the deaths of two is clear -- bullet wounds from countrymade pistols. The reason for the death of the third person is not clear but it will be after post-mortem."
Internet services were soon suspended in Sambhal tehsil for 24 hours and the district administration declared a holiday in all schools for Monday.
Tension had been brewing in Sambhal since November 19 when the Jama Masjid was first surveyed on the court's orders following a petition claiming that a Harihar temple had stood at the site.
Trouble started early on Sunday when a large group of people gathered near the mosque and started shouting slogans as the survey team began its work.
District officials said the survey could not be completed on Tuesday and was planned for Sunday to avoid interference with afternoon prayers.
Supreme Court lawyer Vishnu Shankar Jain, who is a petitioner in the case, had earlier said the Court of Civil Judge (Senior Division) ordered the constitution of an "advocate commission" to survey the mosque.
The court has said a report should be filed after conducting a videography and photography survey through the commission, he had said.
On Sunday, Jain urged the Archaeological Survey of India to take control of the "temple".
Gopal Sharma, a local lawyer for the Hindu side, had earlier claimed the temple that once stood at the site was demolished by Mughal Emperor Babur in 1529.
