Madras High Court
The Commissioner Of Income Tax vs M/S.Computer Sciences Corpn ... on 17 June, 2021
T.C.A.Nos.757 and 758 of 2014
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 17.06.2021
CORAM :
THE HON'BLE MR. JUSTICE M.DURAISWAMY
AND
THE HON'BLE MRS.JUSTICE R. HEMALATHA
T.C.A.Nos.757 and 758 of 2014
The Commissioner of Income Tax,
Chennai. ... Appellant
in all appeals
Vs.
M/s.Computer Sciences Corpn India Pvt. Ltd.
Unit 13, Block 2, SDF Buildings,
Madras Export Processing Zone,
Tambaram, Chennai – 600 045. ... Respondent
in all appeals
Tax Case Appeals in T.C.A.Nos.757 and 758 of 2014 preferred
under Section 260A of the Income Tax Act, 1961, against the order of
the Income Tax Appellate Tribunal, Madras, “B” Bench, dated
03.03.2014 in I.T.A.Nos.1409/Mds/2013 and 1205/Mds/2013,
respectively for the Assessment Year 2008-09.
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T.C.A.Nos.757 and 758 of 2014
For Appellant : Mr.T.Ravikumar
Senior Standing Counsel
in all appeals
For Respondent : Mr.R.Venkata Narayanan
for M/s.Subbaraya Aiyar
in all appeals
COMMON JUDGMENT
(Judgment was delivered by M.DURAISWAMY, J.)
We have heard Mr.T.Ravikumar, learned Senior Standing Counsel
for the appellant/Revenue and Mr.R.Venkata Narayanan for
M/s.Subbaraya Aiyar, learned counsel for the respondent/assessee.
2.The above appeals, filed by the Revenue under Section 260A of
the Income Tax Act, 1961 (for short, the Act), are directed against the
order dated 03.03.2014 made in I.T.A.Nos.1409/Mds/2013 and
1205/Mds/2013, on the file of the Income Tax Appellate Tribunal,
Madras, “B” Bench (for brevity, the Tribunal) for the Assessment Year
2008-09.
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T.C.A.Nos.757 and 758 of 2014
3.The above appeals were admitted on 17.11.2014 on the
following substantial questions of law:
T.C.A.No.757 of 2014 :
“1.Whether on the facts and circumstances of the
case, the Tribunal was right in holding that Section 14A
was applicable prospectively and Rule 8D should not be
invoked for the period 1.4.2007 to 23.3.2008, especially
when the same was notified on 24.3.2008?
2.Is not the finding of the Tribunal bad by restricting
the disallowance made under Section 14A to Rs.35 Lakhs as
against Rs.97,78,639/- by holding that Rule 8D could not be
invoked for the period 1.4.2007 till 23.3.2008, especially
when the provisions of Rule 8D had been notified with effect
from 24.3.2008 and had been made applicable for the
assessment year 2008-2009 onwards?”
T.C.A.No.758 of 2014 :
“1.Whether on the facts and circumstances of the
case, the Tribunal was right in holding that exclusion of
telecommunication charges and expenditure incurred in
foreign currency were to be excluded from the export
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T.C.A.Nos.757 and 758 of 2014
turnover and also from the total turnover?
2.Whether on the facts and circumstances of the case,
the Tribunal was right in directing the Assessing Officer to
recompute the income in the light of the decision of the
Special Bench in the case of Sak Soft by excluding the
freight and insurance expenses both from the export
turnover and also from the total turnover while computing
deduction under Section 10B of the Income Tax Act?
3.Is not the finding of the Tribunal bad, especially
when in Section 10B(2)(iv) of the Income Tax Act the word
Export turnover had been defined whereby it would not
include freight telecommunication charges, insurance
attributable to the delivery of the articles or things or
computer software outside India or expenses if any incurred
in foreign exchange while providing the technical services
outside India?”
4.The learned Senior Standing Counsel for the appellant submits
that the above appeals are not pursued by the Revenue on account of the
Low Tax Effect in terms of Circular No.17/2019 dated 08.08.2019 issued
by the Central Board of Direct Taxes. By the said Circular, the monetary
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T.C.A.Nos.757 and 758 of 2014
limit for filing or pursuing an appeal before the High Court has been
increased to Rs.1 crore. It is further submitted that the tax effect in these
cases is less than the threshold limit.
5.In the light of the said submissions, the above Tax Case Appeals
are dismissed as withdrawn on account of the Low Tax Effect. The
substantial questions of law framed are left open. In the event the tax
effect in these cases is above the threshold limit fixed in the said
Circular, liberty is granted to the Revenue to make a mention to this
Court to restore the above appeals to be heard and decided on merits. No
costs.
[M.D., J.] [R.H., J.]
17.06.2021
Index : Yes/No
Internet : Yes
mkn
To
1.The Income Tax Appellate Tribunal,
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T.C.A.Nos.757 and 758 of 2014
Madras, “B” Bench.
2.The Commissioner of Income Tax,
Chennai.
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T.C.A.Nos.757 and 758 of 2014
M.DURAISWAMY, J.
and
R. HEMALATHA, J.
mkn
T.C.A.Nos.757 and 758 of 2014
17.06.2021
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