INCOME TAX

INSTRUCTION NO. 3/2014

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

DEPARTMENT OF REVENUE

CENTRAL BOARD OF DIRECT TAXES

NEW DELHI

Dated: March 14, 2014

To

All Chief Commissioners of Income tax/

All Directors Generals of Income tax

Issues relating to export of computer software- Direct tax benefits-Clarification-reg.

A clarificatory Circular No.01/2013 dated 17.01.2013 was issued by CBDT to address various contentious issues leading to tax disputes in cases of entities engaged in export of computer software which are availing tax-benefits under sections 10A, 10AA and 10B of the Income-tax Act, 1961.

2. Thereafter, Instruction No.17/2013 was issued on 19.11.2013 to the field authorities advising them to follow the aforesaid Circular in letter and spirit so that the cases which are covered by the above instruction are not contested in further appeal. The objective was to avoid frivolous litigation on issues which stand clarified by the Circular No. 01/2013 dated 17.01.2013.

3. In continuation thereof, the undersigned is directed to convey that the said clarificatory Circular No.01/2013 dated 17.01.2013 may be brought to the notice of all Departmental Representatives (DRs) and Standing Counsels of the Department who plead such matters before the ITATs and the Courts, respectively so that such appellate authorities/courts are duly appraised of the clarifications issued by CBDT on various contentious issues pending before them.

F. No. 178/84/2012-ITA.I

(Deepshikha Sharma)

Deputy Secretary to the Government of India