Madras High Court
The Commissioner Of Income Tax vs M/S. Cosmic Global Ltd on 16 August, 2022
TCA.No.1033 of 2014
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 16.08.2022
CORAM
THE HONOURABLE MR. JUSTICE R. MAHADEVAN
and
THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ
T.C.A.No. 1033 of 2014
The Commissioner of Income Tax,
Chennai .. Appellant
Versus
M/s. Cosmic Global Ltd.,
No.3, 1st Floor, Apex Plaza,
Nungambakkam High Road,
Chennai 600 034. .. Respondent
Tax Case Appeal filed under Section 260-A of the Income Tax Act,
1961 against the order of the Income Tax Appellate Tribunal, Madras “B”
Bench, Chennai, dated 30.07.2014 passed in I.T.A.No.744/Mds/2014 in
respect of assessment year 2009-10.
For Appellant : Mr. T. Ravikumar
Standing Counsel
For Respondent : Mr. R. Sivaraman
1/4
https://www.mhc.tn.gov.in/judis
TCA.No.1033 of 2014
JUDGMENT
(Judgment of the Court was delivered by R. MAHADEVAN, J.)
This Tax Case Appeal has been filed by the appellant / revenue,
questioning the correctness of the order dated 30.07.2014 passed by the
Income Tax Appellate Tribunal Madras “B” Bench, Chennai, in
I.T.A.No.744/Mds/2014 for the assessment year 2009-2010.
2. On 17.12.2014, this tax case appeal is admitted by this Court on the
following substantial questions of law;
'1.Whether on the facts and circumstances of the case,
the Income Tax Appellate Tribunal was right in deleting
the additions made under Section 40(a)(i) of the Income
Tax Act, 1961?
2. Whether the finding of the Income Tax Appellate
Tribunal is proper by holding that the payments made to
non-resident translators would not fall within the scope of
Fees for Technical services as defined in Explanation (2)
of sec.9(1)(vii) of the Income Tax Act?
3. Is not the finding of the Tribunal bad especially
when the translation work involves and requires
specialized skill about the language to be translated,
involving technical translation services for which one
should have essential skill for producing good translation
by understanding the source text and having goods
command about the language and knowledge?”
https://www.mhc.tn.gov.in/judis
TCA.No.1033 of 2014
3. When the matter was 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 appeals 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
this appeal 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 appeal, wherein, the tax effect is said to
be less than the monetary limit imposed, is dismissed as withdrawn, keeping
open the substantial questions of law for determination in an appropriate case.
No costs.
[R.M.D,J.] [M.S.Q., J.]
16.08.2022
msr
Index : Yes / No
https://www.mhc.tn.gov.in/judis
TCA.No.1033 of 2014
R. MAHADEVAN, J.
and
MOHAMMED SHAFFIQ, J.
msr
To
1. The Asst. Commissioner of Income Tax,
Company Circle -I(3), Chennai-34.
2. The Commissioner of Income Tax (A)(C)-II,
Chennai-34.
3. The Income Tax Appellate Tribunal, Madras “B” Bench,
Chennai.
T.C.A.No. 1033 of 2014
16.08.2022
https://www.mhc.tn.gov.in/judis
