COMMISSIONER OF INCOME TAX Vs. INFOSYS TECHNOLOGIES LTD.

JUDGEMENT

(1.) THESE appeals filed under Section 260A of the Income Tax Act, 1961 [for short, the Act], by the revenue, are directed against the common order dated 31 -3 -2005 passed by the Income Tax Appellate Tribunal, Bangalore 'A' Bench, Bangalore, in respect of four appeals of the respondent -assessee relating to assessment years 1993 -94, 1994 -95, 1995 -96 and 1996 - 97, corresponding to ITA Nos 793/Bang/1998, 794/Bang/1998, 795/Bang/1998 and 50/Bang/1998 respectively. The revenue has raised the following substantial questions of law for our examination and answer:

(2.) BRIEF background in which these appeals arise is that: The assessee is a limited company and engaged in the business development of software and sale of software for the requirement of their customers and also rendering technical services in connection with the development of software etc.

(3.) WHILE sub -section (1) of Section 80HHE of the Act indicates as to who are of the assessees who can claim the benefit of the deduction under Section 80HHE and in respect of what kind of rates attributable to what kind of activity. Sub -section (2) indicates the conditions subject to which the claim can be put forth. Sub -section (3) provides the manner of computation of the amount qualified for deduction, in the sense, what is the profit which has to be worked out as per sub -section (3) that qualifies for the benefit under sub -section (1). Sub -section (4) provides for conditions mandated on the assessee to claim such benefit and to provide particulars and information, and the explanation to sub -section (5) provides the meaning for certain expressions used in the context of this section and for the present purpose what is in issue is the meaning of the phrase 'export turnover' as defined in clause -(c) of the explanation to Section 80HHE and the scope of the phrase 'total turnover' as defined as per clause -(e) of the explanation to Section 80HHE of the Act.