Ontrack Systems Ltd. VS Assistant Commissioner of Income-tax, Company Circle-V(1)

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

MAHAVIR SINGH, T.R.SOOD
Ontrack Systems Ltd. – Appellant
Versus
Assistant Commissioner of Income-tax, Company Circle-V(1) – Respondent

Advocates Appeared:
Philip George,N. Rengaraj

ORDER

Per Mahavir Singh, Judicial Member. - This appeal of the assessee is directed against the order of the CIT (Appeals)-V, Chennai dated 12-12-2003. The relevant assessment year involved in this appeal is 2000-01.

2. The only issue in this appeal of the assessee is whether creation of website would fall within the ambit of section 80-O of the Income-tax Act, 1961 and can it be considered as design within definition of this section.

3. The briefly stated facts are that the assessee is engaged in the business of computer maintenance and services. The assessee claimed deduction under section 80-O of the Act on foreign exchange earned at US$ 10,000 equivalent to a sum of Rs. 4,32,500. For designing the websites, the amounts received and the nature of work done by the assessee are as under :

Person from whom received	Amount received US$	Date of receipt	Nature of service rendered
Astral Systems Inc. California	5,000	4-6-1999 11-8-1999	Development of website city4u.com
Itouchu Corporation Tokya	5,000	31-1-2000 21-2-2000	Designing and programming services

The Assessing Officer has disallowed the claim of the

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MAHAVIR SINGH, T.R.SOODOntrack Systems Ltd. – AppellantVersusAssistant Commissioner of Income-tax, Company Circle-V(1) – Respondent

MAHAVIR SINGH, T.R.SOOD
Ontrack Systems Ltd. – Appellant
Versus
Assistant Commissioner of Income-tax, Company Circle-V(1) – Respondent