S. Ravindra Bhat, J. - (1.) The questions of law framed in ITA No. 1108/2007 are as follows : (i) Whether the transfer of computer software by the Indian branch to the head office can be said to be 'sale' to the head office out of India ? (ii) Whether the assessee is entitled to claim benefit of Section 10A of the Income Tax Act, 1961, as the software is developed by the branch as per the requirement of Head Office and not sold to any third party ?
(2.) The companion appeals i.e. ITA Nos. 1249/2009 and 173/2016 also concern the same questions of law, because the Income Tax Appellate Tribunal (in short 'ITAT') followed the decision rendered by it on 05.01.2007, (which is the subject matter of ITA No. 1108/2007).
(3.) The assessee is engaged in the business of software development and was accorded approval of the Reserve Bank of India (in short 'RBI') under the then prevailing Foreign Exchange Regulation Act, 1973 to establish a branch office in India : at Noida and New Delhi, for development of software for export. It received approval for setting up of 100% Export Oriented Unit (EOU) under the Software Technology Park (STP) Scheme of the Central Government on 23.09.1999 for development of computer software ; the software so developed by it is electronically transmitted to its head office, located abroad. In terms of the agreement between the assessee and its head office, the latter pays all direct and indirect cost for development of software with the mark up of 15% of such process.;