Per Keshaw Prasad, A.M. - The appeal has been directed by the revenue against the order of the Commissioner (Appeals) dated 13-7-1998 pertaining to assessment year 1996-97. The only ground of appeal raised by the revenue relates to the deduction under section 80HHE of the Act.

2. Briefly the facts of the case are that the main business activity of the company is to make customers (mainly travel agents) online with AMADEUS CRS System. For connectivity to AMADEUS System agents are supplied with free of cost computers Systems which are being provided by GTS. The Agents are also provided with training and system usage free of charge by Amadeus India (P.) Ltd.

3. The agents receive latest information regarding schedules and availabilities of worldwide participants in the AMADEUS System, and create reservation data and records which are proceeded and exported immediately into the system, while data created is simultaneously processed in the AMADEUS Data Processing Centre abroad in Erding, Germany & confirmed through creation of a record locator.

4. Every time an agent makes an air, hotel, car or other travel related booking through AMADEUS System it is measured in terms of segments. Fo