This is an appeal by assessee against the order of CIT (A) relating to assessment year 1999-2000. The following grounds of appeal have been taken by the assessee 1. That on the facts and in the circumstances of the case and in law, the CIT (A)-XVI, New Delhi (briefly "the CIT (A)) erred in upholding the disallowance of the deduction under section 80HHE amounting to Rs. 15,76,17,840.
1.1 CIT (A)-XVI, New Delhi erred in holding that appellant is neither engaged in business of production of computer programme nor customized electronic data.
2. That on the facts and in the circumstances of the case and in law, the CIT (A)-XVI, New Delhi (briefly "the CIT (A)") erred in holding that appellant is not entitled to the alternate plea under section 80HHC because neither such claims was made before the assessing officer nor report under section 80HHC(4) was filed.
3. That on the facts and in the circumstances the orders of assessing officer/CIT (A)-XVI are bad in law and on facts.
4. That the appellant may be allowed to add, supplement, amend, delete any of the ground, raised hereinabove.
2. The assessee filed return declaring an income of Rs. 3,15,07,570.
The assessment was completed under section 143(3) on an income of Rs. 19,63,90,010. In this way, the total disallowances/additions were made by the assessing officer of Rs. 16,48,82,441. Out of these disallowances/additions, an addition of Rs. 15,76,17,840 was made by disallowing the deduction claimed under section 80HHE of the Income Tax Act. The assessing officer disallowed the claim of the deduction under section 80HHE on the primary ground that assessee company is not engaged in the production and export of computer software, but is engaged in the production of Television news software, which cannot be described as computer software within the meaning of section 80HHE. The assessing officer further observed in his order that Television news software have been covered under section 80HHE with effect from 1-4-2000 as per Finance Act, 1999. Therefore, the assessees claim under section 80HHE is not permitted as assessee is not engaged in production and export of computer software. Before denying the deduction the assessee was confronted with this fact and after taking explanation from the assessee which was not satisfactory to the satisfaction of the assessing officer, then the deduction was denied.
The assessee preferred appeal before the CIT (A) and detailed submissions were filed before CIT (A). The technicalities were also explained before the CIT (A). The details of production of news software and data selected for preparing the news software were also filed. The dictionary meaning of the word "software" was also explained before the CIT (A) and it was pleaded that the company was engaged in the production of computer software from which the amounts have been brought in convertible foreign exchange and, therefore, the assessee was entitled for benefit of deduction under section 80HHE. An alternate ground was also taken before the CIT (A), by which it was claimed that if the deduction under section 80HHE is not allowable to the assessee, then the deduction under section 80HHC should be allowed, as assessee has received the convertible foreign exchange in lieu of sale of news software. The CIT (A) considered the submissions of the assessee and was of the view that assessing officer was correct in denying the deduction under section 80HHE, as the assessee is developing and exporting only Television news software directly to STAR T.V. at Hong Kong. It is not covered within the meaning of section 80HHE because it is a computer programme not customized electronic data, therefore, the benefit of section 80HHE would not be given to the assessee-company during the year under consideration. Accordingly the order of the assessing officer was confirmed.
The alternate ground of the assessee was also dismissed by CIT (A) by observing that "the appellant has made claim of deduction under section 80HHE only and for that has also filed auditors report in Form No.10CCAF. The appellant has not made any claim under section 80HHC before the assessing officer nor any report in the Form 10CCAC has been filed by the appellant which is prerequisite under section 80HHC(4). As the appellant has not made any claim before the assessing officer for benefit under section 80HHC, the same was not considered. Therefore, the assessing officer was justified in not giving any benefit under section 80HHC. The ground of the appellant fails." Now the assessee is in appeal here before the Tribunal.
Lengthy arguments were put forth by the learned counsel of the assessee. Reliance was placed on the case laws in Asstt. CIT v. Amadeus India (P) Ltd. (2002) 257 ITR 23 (AT) (Del). Further attention of the Bench was drawn on Board Notification No. 890(E) dated 26-9-2000 (Notification No. 11521/F.No. 142/49/2000-TPL), in which the scope of section 80HHE was enhanced. It was further stated that Explanation (b) of section 80HHE is clearly applicable on the facts of the present case, as the assessee is collecting datas for the purpose of preparing news software and data includes in the definition of computer software.
It was further explained that Television news software is nothing but a computer software, because Television news software cannot be handled without the use of computer. Therefore, only on technicalities on which basis the assessing officer or the CIT (A) had denied the claim of the assessee. Again it was emphasized that data processing is nothing but computer software and it was further added that similar issue was before the Tribunal in case of Amadeus India (P) Ltd. (supra), and the Tribunal has decided the issue in favour of assessee. The procedure for preparing the data programmes was also explained by the counsel of the assessee and the attention of the Bench was drawn on various clauses of the agreement entered into between the parties and Annexure 1, which is in regard to details of major hardware and software used for production of New Delhi Television Ltd. software. It was further stated that the CIT (A) has taken a contradictory stand in his order while rejecting the claim of the assessee.
6. On the other hand, the learned Departmental Representative firstly placed strong reliance on the orders of assessing officer and CIT (A).
It also further stated that the deduction under section 80HHE is allowable with reference to computer software only, but not for any other item. For other items the deduction under section 80HHC has been provided. Therefore, the Television news software cannot be equated with the computer software. It was further stated that the intention of the legislature was very clear and deduction on account of Television news software has been provided under section 80HHF with effect from 1-4-2000 and in subsequent years the assessing officer has himself allowed the deduction to the assessee under section 80HHF of the Act.
The words "processing data" have been used everywhere, therefore, for the put-pose of deduction under section 80HHE it cannot be included with the definition of computer software. The assessee is doing nothing but merely editing and collecting figures of news and thereafter the news is translated to other channels run by other parties. It was further added that the Television news is nothing but they are for the purpose of broadcasting the news, therefore, not qualified for deduction. The learned Departmental Representative has also stated that the assessee is dealing in data processing and editing of news software but not dealing in computer software.
In reply, the learned counsel of the assessee invited the attention of the Bench at page 9 of the paper book, where the various stages in regard to production of T.V. news is explained. Again the attention of the Bench was drawn on various paragraphs of the written submissions placed on record.
We have heard rival submissions and considered them carefully. We have also perused the relevant material on which our attentions were drawn.
Before proceeding further, we will like to see the provisions of section 80HHE with Explanation (b) of clause (5), which are as under : 80HHE(1) Where an assessee, being an Indian company or a person (other than a company) resident in India, is engaged in the business of,- (i) export out of India of computer software or its transmission from India to a place outside India by any means, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, (a deduction to the extent of the profits, referred to in sub-section (1B), derived by the assessee from such business (i) any computer programme recorded on any disc, tape, perforated media or other information storage device; or (ii) any customized electronic data or any product or service of similar nature as may be notified by the Board, which is transmitted or exported from India to a place outside India by any means;) Various details of major hardware and software used for production of New Delhi Television software, as explained in Annexure I are as under : Details of Major Hardware & Software used for production of NDTV Software Graphics systems-used by highly skilled and computer savvy graphics artists to produce eye-catching graphics. Systems like the Harriet and Paint Box are capable of creating extremely sophisticated animation sequences. By storing all images, graphics and animations on disks as digital information, these systems allow artists to apply both 2-D and 3-D effects to created images. Quantel systems are proprietary and highly sophisticated computers that allow for the creation, manipulation and delivery of sophisticated graphics, images and animations. Their in-built operating system and software are optimised for graphics work, unlike other generic computer systems like PCs. The optimisations in the Quantel operating system and operating software are targeted at skilled artists to allow them to create stunning visuals.
Graphics still store-used to store and deliver still images created on other Quantel systems like Paint Box. Like other Ouantel systems Picture Box is also a proprietary computer that stores all images/graphics on disks.
The Micro Edit (a.k.a. ME) is a proprietary computer from Quantel with a sophisticated operating system and operating software to create video clips with external and internal keying of video over video, grapbics over video text over video etc. By storing asll video/audio as data on disks, the ME is able to drastically reduce the time required to produce integrated video clips.
The Quantel News Box is an advanced version of the ME that has unlimited layering of video/graphics/text. lt also has an advanced operating software that stores video/audio on disks.
High quality digital tape equipment that store video/audio as digital data to allow extremely fast processing of the data to produce stunning effects and instant recording and playout. Used by skilled and experienced editors to generate video/audio clips that are a part of every newscast. These also inter-face with computer systems like Lift editing systems to allow specially trained editors to create video/audio clips from multiple sources.
Are keyboard like units that allow skilled video editors to control multiple devices at the same time like DVCPRO recorders, players, Profile PDR to create video clips from multiple sources. These are a source of major time savings as the editor need not work on the individual pieces of equipment separately-he/she can control all the required equipment from one place-irrespective of where the desired equipment is placed in the building.
A specialised and extensive computer software that runs on the PC platform and allows ALL users at NDTV to create, manage and monitor newscasts. News Maker also enables the integration of all graphics, video, audio and data equipment to the large NDTV network, creating a cohesive collection of varied equipment that, then, function like one unit.
A PC expansion card-fits into a computer and gives any PC the ability to generate and render text, pictures, graphics and moving video.
a.k.a. RTX-PC (computer) Software that operates in conjunction with Matrox Digi Mix to create sophisticated text and image based still graphics that are used in newscasts. RTX is completely programmable making it ideal for LIVE events where data keeps changing. Events like elections are prime applications for RTX-where, for example, party positions are updated LIVE as they stream in from various sources.
Experienced and skilled programmers from within NDTV are responsible for writing customised applications that interface with all graphics, audio and video equipment.
Inscriber VMP (a.k.a. VMP) allows for the creation of attractive captions that are an important and integral part of every newscast.
Captions allow for the presentation of latest news updates and miscellaneous information to the viewer as also to explain in further detail the story behind the news. For examples, captions are used to inform the viewer of the names/designations of people featured in newscasts. Captions are also used to translate the words of a speaker into the basic language of the newscast. VMP runs on standard PCs in conjunction with graphics cards like the Matrox Digi Mix.
GVG are the leading manufacturers of videos witching equipment. A video switcher is used to assi niflate video/audio/graphics feeds from various sources like Quantel graphics systems, Panasonic players/recorders, Inscriber RTX and VMP systems, Tektronix Profile Disk Recorders, Magic DaVEs. The video switcher is an extremely complicated piece of digital equipment that is run by multiple microprocessors. These microprocessors, with their in-built operating software, allow highly trained and extremely skilled operators to easily and instantly selected the correct video source in the correct order for the newscast. These advanced and state-of-the-art video switchers are nothing but sophisticated computers that plug into the NDTV LAN and can be controlled by customised software written by NDTYs programmers that run on standard PCs. This allows for automating the newscast process. Manual overrides for last-second changes to newscasts is always available. As these video switchers become an integral part of the network the process of switching from manual to automated and back to manual operations becomes very simple.
With multiple graphics, audio, video and data dewitchers vices on the NDTV LAN, it becomes extremely important to provide an intuitive and simple method of allowing users, easy access to all the myriad equipment in the NDTV facility. This is where a routing switcher comes in. With the help of individual panels, every operator can select multiple video, audio and graphics sources to work with. Without a routing switcher multiple cables would need to be drawn to multiple locations for multiple equipment-making the facility a sea of unmanageable cables. With the routing switcher, cables are drawn from individual pieces of equipment only to the routing switcher which then distributes video, audio and graphics, on demand, to ALL users.
One of the most sophisticated pieces of video equipment, the Magic is a computer that processes DaVE incoming digital video data in real-time to produce classic video effects like 3-D loops, wipes, cross fades, etc. These are typically used in both live and post-production scenarios where their ability to quickly process video data and create stunning effects is of great use. Magic DaVEs also allow operators and specially written computer programmes to control the display of video, graphics and images with effects like re-sizing, positioning, skew, perspective, rotation, etc.
Profile Disk Recorder (PDR)-stores video and audio on disks. The PDR is a specialised computer that has been optimised to record and play audio/video clips. The PDR allows for extremely fast and easy storage, editing and payout of video clips. It is also integrated with the newsroom system (News Maker) by applications written by in-house programmers to automatically or manually play stored video clips.
Designed to be part of a LAN, the PDR is integrated with NDTVs extensive network to allow an unlimited number of people to use it at the same time thus saving time, effort and costs.
AVID is a computer (PC/Apple Macintosh) based editing system that allows trained and skilled editors to create video clips. It is a completely digital equivalent of older edit systems based on tapes.
Storing video as digital data on disks, editors using the AVID have advanced video effects like wipes, dissolves, etc. available at the click of a mouse. AVID runs on standard computer hardware that is optimised for quick and easy video editing.
Autocue is world-renowned for their studio and portable teleprompting solutions. Tightly integrated with the News Maker newsroom automation system used in NDTV, Autocues software makes it possible for anchors (newsreaders) to read the latest and updated news reports by looking directly into the camera. Newsreaders do not have to constantly refer to paper print-outs that cannot be updated. Any change to the news text in the news room system News Maker, is immediately available on Autocues teleprompters, enabling newsreaders to present the latest updates to viewers. Autocues teleprompter software runs on standard PCs making it easy to set up, install, learn, operate and maintain.
Audio mixers are the audio equivalents of video switchers. They allow trained and skilled operators to select the correct audio sources to play on air and to dynamically adjust audio levels. Audio mixers from Studer are also controlled by specially written computer software applications that help auto mate the selection of the correct audio source. These also integrate tightly with NDTVs LAN and present themselves as a controllable computer device on the network.
The microwave system allows for continuous, automated transmission of news software (bulletins) to be transmitted to VSNL. From VSNL the video software is uplinked to our clients STAR TV. The microwave system eliminates the need for tapes to be sent to ourclients making the process of continuous delivery of news software to our client a painless process.
Communications, both internal and external, are the heart-beat of a news organization. The Matrix Plus intercom systems allow all stations to easily communicate with each other without the use of dedicated telephone instruments. With clear display of station names, these systems make it possible for them to identify callers and respond to them without disturbing colleagues and other stations.
Highly sophisticated microprocessor based systems that allow the conversion of video and audio signals between dissimilar standards-thus allowing equipment from various vendors to work together cohesively.
These systems make it easy to integrate various standards within NDTYs LAN and take the burden on conversion away from end-user systems letting them concentrate on their basic tasks and making them faster to use.
The brief written note filed by assessee in regard to claim of deduction under section 80HHE, is as under : "That the appellants product is a computer programme is directly covered by the decision of the Honble Delhi Tribunal in the case of AMADEUS, which decision has been accepted by the department without reference to the High Court.
Alternative, the second limb of the above definition is also clearly applicable with equal force to the appellants activities, inasmuch as it clearly produces customized electronic data that is transmitted from India to place outside India by any means.
In modern day computing and media technology data is information that has been translated into a format which is more convenient to move or process. Relative to todays computers and transmission media data is information converted into binary digital form".
The real world dictionary (the leading online dictionary of Computer and IT related technologies defines "digital" as "A description of (data) which is stored or transmitted as a sequence of discrete symbols from a finite set most commonly this means (binary) data represented using electronic or electromagnetic signals.
A detailed note on the production process and the computer hardware and software used by NDTV has already been filed in earlier proceedings. A summarized paraphrase is however, provided below : (a) Planning-The starting point is a daily production plan which is entered into a specific computer based news room automation software (Newsmaker) which sets out the individual segments to be broadcast daily, their order, persons allocated to each task in the process, anchors, timelines etc. etc. This gets continuously updated, modified and monitored during the course of the day through the integration of the Newsmaker system with other computers/computer based processor with NDTV.(b) Collection and Data Input-Data is collected/received either in house or through external agencies. In-house data is collected by NDTVs team of correspondents, cameramen and other technical personnel; whereas data from external agencies is received largely through satellite feeds or as text, audio/video footage/text in the form of tapes/CDs. The collection, receipt and storage of all this data is done in "digital format" with the assistance of sophisticated computers/computer based equipment for i.e., NDTV only uses chip based cameras and digital corm corders. These cameras collect/convert video, audio and luminescence into digital data form and store such data through data chips on to digital data tapes.
Data collected in house is sent to NDTV facilities through VSAT uplinks, VSAT uplink can be only used for data transmission and not for any other transmission.
(c) Graphics & Editing-The data collected and received is edited, sorted, processed and customized through different process in special Graphics and Edit suites. The graphics and edit suites have ultra sophisticated digital computer systems, ordinary computers that are optimized for special functions. These computers carry out creation, manipulation and delivery of specific graphics, images and animation, dissolves, wipes, 3D manipulation (re-sizing, positioning, skew, perspective, rotation etc., colour effects, like solarisation, Psterisation, 2-step colour wash and colour correction), key framing of effects sequences for sophisticated 3-D effects including speed and spline control, external and internal keying of video-over-video, video-over-graphics and graphics-over-video, caption generation, super impositions and headlining, simultaneous editing and control over multiple devices and multiple sources of data.
All the above activities are carried out in digital data format. A short list of major hardware and software used in these processes already filed earlier is again annexed herewith.
-The programme is finalized for broadcast in the Production Control Room (PCR) which is connected to and controls a sound proof studio. The PCR houses a host of sophisticated computers, equipment which enable editing, graphics, special effects functions as in the earlier stage and additionally a sophisticated state of the art digital studio which enable addition of programme links. The PCR also uses multiple personal computers which are specially configured with the Newsmaker software specially enabling the monitoring of the changes to the production plan till the end.
Transmission-The final product (Processed Data) is encrypted and transmitted again in digital data format. Data encryption involves special data coders and multiplexers. The digital data is electronically transmitted directly from NDTV studio to VSNL, through special microwave link and then through VSNL, directly on a point to point basis from India to Hong Kong via Intel SAT. At Hong Kong it is received by STAR TV which uses special data Decryption equipment to re-convert the encrypted digital data stream into broadcast quality video and audio which is then broadcast through satellite to the customers.
NDTV uses MPEG digital standard in its news collection, process, storage and transmission activities. The MPEG-2 standard has been described by www.realdictionary.com (the leading online dictionary for Computer & IT related technologies) as "MPEG-2 A variant of the (MPEG) video and audio (compression) (talgoritham) and file format optimized for (broadcast quality videol).
MPEG-2 was designed to transmit images using (progressive coding) at 4 {Mbps} or higher for use in broadcast (digital TV) and (DVD). An MPEG2 player can handle {MPEG-1} data as well. MPEG-2 has been approved as {International Standard} {IS- 13818}.
Category : compression standard algorithm file format Updated on 4/18/1995," The use of the words Mbps which stands for Mega Bits Per Second (which is the standard definition to describe the speed of transfer of any data over a computer network) and other words used in the above context are all IT-based technological terms.
In the digital computer television world, the video information is broken up into discrete points in the frame, which is PAL standard TV (followed in India and Europe) is 720 pixels wide by 576 pixels high; in laymans terms, this means that a total of 720 X 576 = 414,720 separate electronic samples are taken once every 1/25th of a second, each pixel of information is compared with a pixel next to it, and several binary values are assigned to it. These binary values when combined store the information of the video, such as position in relation to the whole screen, the colour (one of 16.7 million colours), the luminance (or brightness) and the contrast as "data" (digital format). This, therefore, forms the complete information data of the digitalized picture. When this information is transmitted over any medium, any computing device which is capable of decoding this electronic data is able to display the picture correctly.
At the transmission end, since the volume of computation is extremely high (typically, MPEG-2 encoding requires Millions of Floating Points of Instructions), specially designed computers are housed in a box with dozens of VLSI (Very Large Scale Integrated) chips to complete the process. This is necessary as all conversions to MPEG-2 is to be done in less then 1 second.
It is already on record that NDTV produces its data/programme specifically for its customer STAR TV. The preparation of the programme/data is customized according to the standards, specifications, direction and supervision of the STAR TV. This customization include the format, look and feel, colour scheme, set design, production standards, quality standard, graphic standards, technical standards, specification and standard of equipment to be used, use of logos, brand marks, trademarks etc.
Being specially prepared for STAR TV, according to its directions and paid for by STAR TV, it is evident that what is ultimately transmitted by NDTV is clear "customized electronic data" within the definition of computer software as provided under section 80HHE.The Board by Notification No. 11521/F. No. 142/49/2000 TPL issued on 26-9-2000 under the head Statute : Income Tax in regard to section 10A(b)(i)(2), section 10B(b)(i)(2), section 80HHE(b), has issued instructions as under : In exercise of the powers conferred by clause (b) of item (i) of Explanation 2 of section 10A, clause (b) of item (i) of Explanation 2 of section 10B and clause (b) of Explanation to section 80HHE of the Income Tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby specifies the following information technology enabled products of services, as the case may be, for the purpose of said clauses, namely : 12. We have considered the provisions of section 80HHE along with Explanation (b) of sub-clause (v); the Board Instructions dated 26-9-2000; details regarding major hardware and software for production of Television News Software; submissions of the learned Authorised Representative; ratio of the decisions reported in Amadeus India (P) Ltd.s case (supra) and submissions of learned Departmental Representative along with the orders of the authorities below. After considering all the material and submissions, we find that assessee deserves to succeed in its appeal in regard to deduction under section 80HHE. We noted that no doubt the main provisions of section 80HHE is in regard to deduction on account of computer software. However, if Explanation (b) of clause (5) is taken into consideration then it will be seen that many other items are included, which includes customized electronic data also. Board in its Instructions dated 26-9-2000 has enlarged the scope of deductions under section 80HHE whereby clause (b) of Explanation to section 80HHE expanded the scope by including various information technology enabled products or services. In these items, the item data processing is also included which at No. (iv) of the Board Instructions dated 26-9-2000. There is no doubt that the Board instructions which came through Notification No. 890(E)/(Notification No. 11521/F.No. 142/49/2000-TPL) are binding on the departmental authorities. Therefore, no doubt remains that the activities done by assessee as customized electronic data is covered under the provisions of section 80HHE, as the scope of Explanation (b) of clause (5), has been enlarged. Various stages in regard to collecting the customized electronic data have been explained above. The various stages of the activities of NDTV, like programme planning; data collection and input; editing and graphic production, transmission etc. have also been explained by the counsel of the assessee and some part of the same is reproduced here above in this order. After examining the various stages and various parts of the activities, we find that assessees main activity is of collecting the electronic data and then transferring to STAR TV as per agreement entered into between the assessee and the party. Therefore, it is clearly established that the activity of the assessee is that of customized electronic data, as provided in Explanation (b) of clause (5) to section 80HHE. Therefore, it is not correct on the part of the lower authorities in holding that the activity done by assessee is not covered within the definition of section 80HHE. The assessing officer as well as CIT (A) have taken into consideration the main part of provisions of section 80HHE, but has not considered the Explanation (b) of clause (5) to section 80HE. For example, it is like Cigarette includes Bidi; men include women. If somewhere it is mention cigarette and men only, then it cannot be said in any way that they include Bidi and women. However, if it is mentioned cigarette including Bidi and Men including women, then it cannot be said that women and Bidi are not included. Likewise, here if there would not have been any explanation added to section 80HHE, then in no manner it can be presumed that the computer software includes customized electronic data. As explained above, it is clearly provided that in Explanation (b) of clause (5) of section 80HHE that customized electronic data also included. The departmental authorities itself admitting that assessees activities are that of collecting electronic data for its customers. Therefore, we are not in hesitation in holding that assessee is entitled to deduction under section 80HHE.We have also seen the ratio of the decision in case of Amadens India (P) Ltd. (supra), wherein it is held as under : "Held, dismissing the appeal, (i) that while considering the activities of the assessee, the assessing officer omitted to consider the fact that, according to Explanation (b) to section 80HHE, computer software means a computer programme recorded on any disc, etc., and includes any such programme which was transmitted from India to a place outside India by any means. What the assessing officer should have examined was whether the assessee was exporting any computer programme or not. An analysis of the activities carried on by the assessee showed that the assessee was exporting the instructions through computer which were capable of causing a computer to perform a particular task or achieve a particular result. As the words computer programme had not been defined under the Income Tax Act but had been defined under the Copyright Act, the activities carried on by the assessee clearly fulfilled the conditions mentioned in the Copyright Act. Thus, the activities carried on by the assessee clearly fulfilled the conditions for claim of deduction under section 80HHE of the Act." After considering the findings of above decision of the Tribunal, we find that on similar circumstances, the Tribunal has allowed the claim of deduction under section 80HHE.15. We have also seen the provisions of section 80HHE. These provisions were brought on the statute with effect from 1-4-1999 applicable from assessment year 2000-2001, for allowing deduction in respect of profits and gains from export or transfer of film software. In this section, the legislature for the purpose of removal of doubt, has added clauses (h) and (i), wherebv the Television News software and Television software work has been explained for the purpose of deduction under section 80HHE. The assessing officer has drawn wrong inference because of the new section 80HHF introduced with effect from 1-4-1999. In view of the assessing officer, the deduction in regard to Television News Software was allowable to the assessee under section 80HHF and not under section 80HHE of the Act. As stated somewhere above, that assessing officer has taken into consideration the main provisions of section 80HHE and has not taken into consideration the Explanation (b) of clause (5). Therefore, for this reason the deduction claimed by assessee was denied. As we have discussed in detail above, that deduction under section 80HHE is allowable to the assessee for the year under consideration, because the meaning of computer software has been explained in Explanation (b) of clause (5) to section 80HHE. Therefore, respectfully following the above decision of the Tribunal, other reasons discussed here by us and in view of the Board Instructions (supra), we hold that assessee is entitled to deduction under section 80HHE of the Income Tax Act, and the assessing officer is directed accordingly to allow the deduction to the assessee.
Since we have allowed the main ground of the assessee, therefore, the other grounds have become infructuous and does not require any adjudication upon.