Customisation of software amounts to ‘production’ of computer program and entitled for benefit under Section 10B

Recently, the Mumbai Bench of the Income-tax Appellate Tribunal (the Tribunal), in the case of Cybertech Systems & Software Ltd (the taxpayer) held that customisation of software amounts to ‘production’ of computer program and entitled for benefit under Section 10B of the Income-tax Act, 1961 (the Act).

Further, the Tribunal held that the interest income did not have direct nexus to the income derived by the taxpayer from the undertaking and therefore not liable for benefit available to Export Oriented Unit under Section 10B of the Act.