Madras High Court
The Commissioner Of Income Tax vs M/S. Inautix Technologies India ... on 9 December, 2021
T.C.A.Nos.715, 721 & 722 of 2014
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 09.12.2021
CORAM :
THE HON'BLE MR. JUSTICE R. MAHADEVAN
AND
THE HON'BLE MR. JUSTICE MOHAMMED SHAFFIQ
T.C.A.Nos.715, 721 & 722 of 2014
and
MP.Nos. 1 to 1 of 2014
The Commissioner of Income Tax,
Chennai. ... Appellant in all Tax Case Appeals
Versus
M/s. iNautix Technologies India Pvt Ltd.,
10th Floor, Tidel Park,
4, Canal Bank Road,
Taramani, Chennai – 600 113.
... Respondent in all Tax Case Appeals
Appeals preferred under Section 260A of the Income Tax Act, 1961,
against the order of the Income Tax Appellate Tribunal, Madras, “B” Bench,
dated 09.08.2011 in I.TA.No.1054/Mds/2006, I.TA.No.2177/Mds/2010 &
I.TA.No.2178/Mds/2010.
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T.C.A.Nos.715, 721 & 722 of 2014
For Appellant : Mr.Karthik Ranganathan,
Senior Standing Counsel in all cases
For Respondent : Mr.N.V.Balaji, in all cases
COMMON JUDGMENT
(Judgment was delivered by R.MAHADEVAN, J.)
These tax case appeals have been filed by the appellant / Revenue,
challenging the orders dated 09.08.2011 passed by the Income Tax Appellate
Tribunal, 'B' Bench, Madras, in I.TA.No.1054/Mds/2006,
I.TA.No.2177/Mds/2010 & I.TA.No.2178/Mds/2010, relating to the
respective assessment years 2002-03, 2004-05 & 2005-06.
2.By order dated 03.12.2014, this court admitted the aforesaid tax case
appeals on the following substantial questions of law:
TCA.No.715 of 2014
“1. Whether on the facts and in the circumstances of the
case, the Income Tax Appellate Tribunal was right in holding
that the inclusion of foreign exchange fluctuation gain in the
eligible profit for the purpose of computation of deduction
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T.C.A.Nos.715, 721 & 722 of 2014
under Section 10A is to be allowed even though the exchange
fluctuation is only a subsequent event after the completion of
the transaction and cannot partake the character of sale
proceeds?
2. Whether on the facts and in the circumstances of the
case, the Income Tax Appellate Tribunal was right in
dismissing the departmental appeal regarding that inclusion of
refunds from the Central Sales tax in eligible profit for the
purpose of deduction under Section 10A even though the same
is not operational income and has to be excluded?
3. Whether on the facts and in the circumstances of the
case, the Income Tax Appellate Tribunal was right in holding
that the loss from the provision of works station is to be treated
as business loss as against the loss from other sources?”
TCA Nos.721 & 722 of 2014
“1. Whether on the facts and in the circumstances of the
case, the Income Tax Appellate Tribunal was right in holding
that the expenditure incurred in foreign currency is to be
excluded from the export turnover and also from the total
turnover?
2. Whether on the facts and in the circumstances of the
case, the Income Tax Appellate Tribunal was right in holding
that the expenditure incurred in foreign currency for the
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T.C.A.Nos.715, 721 & 722 of 2014
technical services rendered outside India for the assessment
years 2003-04, 2004-05, 2005-06 and 2006-07 is to be
allowed?
3. Whether on the facts and in the circumstances of the
case, the Income Tax Appellate Tribunal was right in holding
that the expenditure incurred in foreign currency from export
turnover and total turnover is to be excluded while computing
deduction under Section 10A?
3.When these matters were taken up for consideration, the learned
counsel for the appellant / Revenue brought to the notice of this court the
Circular No.17/2019 dated 08.08.2019 issued by the Central Board Direct
Taxes, wherein, it is stipulated that appeal shall not be filed/pursued by the
Department before the High Court in cases where the tax effect does not
exceed Rs.1,00,00,000/- (Rupees One Crore). It is also submitted that the tax
effect in these appeals is less than the threshold limit.
4.In the light of the aforesaid submissions made by the learned counsel
for the appellant / Revenue, the present appeals, wherein, the tax effect is said
to be less than the monetary limit imposed, are dismissed as withdrawn,
keeping open the substantial questions of law for determination in
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T.C.A.Nos.715, 721 & 722 of 2014
appropriate cases. No costs. Consequently, connected miscellaneous
petitions are closed.
(R.M.D., J.) (M.S.Q., J.)
09.12.2021
av
Internet : Yes
Index : Yes / No
To
1.The Income Tax Appellate Tribunal,
Madras, “B” Bench.
2. The Commissioner of Income Tax,
Chennai.
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T.C.A.Nos.715, 721 & 722 of 2014
R. MAHADEVAN, J.
and
MOHAMMED SHAFFIQ, J.
av
T.C.A.Nos.715, 721 & 722 of 2014
and
MP.Nos. 1 to 1 of 2014
09.12.2021
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