Commissioner Of Income Tax Chennai v. M/S.servion Global Solutions Ltd.,Plot

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 23.07.2020 CORAM : THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMAND THE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN TAX CASE APPEAL NO.486 OF 2018 Commissioner of Income Tax Chennai....Appellant Vs M/s.Servion Global Solutions Ltd.,Plot No.4/600 & 4/197, 7[th] Street,Dr.VSI Estate, Phase II,Thiruvanmiyur, Chennai – 600 034.PAN: ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961against the order dated 23.11.2016 in ITA No.2010/Mds/2016 onthe file of the Income Tax Appellate Tribunal Chennai 'C' Benchfor the assessment year 2009-10 against the order of theCommissioner of Income Tax (Appeals)-15, No.121, Mahatma GandhiRoad, Nungambakkam, Chennai, dated 18/03/2016 made in ITANo.466/CIT(A)-15/13-14, Assessment Year 2009-2010. Against order of the Deputy Commissioner of Income TaxCompany Circle VI(2), 7[th] floor, Wanapathy Block, 121, MahatmaGandhi Road, Chennai - 34, dated 22/03/2013 made in PANNO.AAAC10947F, Assessment Year 2009-2010. For Appellant : Mr.J.Narayanasamy Standing Counsel For Respondent: Mr.S.P.Chidambaram Judgment was delivered by T.S.SIVAGNANAM,J We have elaborately heard Mr.J.Narayanasamy, learnedStanding Counsel appearing for the appellant/revenue andMr.S.P.Chidambaram, learned counsel appearing for the respondent. https://hcservices.ecourts.gov.in/hcservices/ 2.This appeal, filed by the revenue under Section 260A ofthe Income Tax Act, 1961 (“the Act” for brevity), is directedagainst the order dated 23.11.2016 passed by the Income TaxAppellate Tribunal, Chennai 'C' Bench (for brevity, theTribunal) in ITA No.2010/Mds/2016 for the assessment year 2009-10. 3.This appeal was admitted on 05.12.2019 on the followingsubstantial questions of law: “1.Whether on the facts and in thecircumstances of the case the Tribunal was rightin holding that the assessee is entitled forexemption under Section 10A when there is a clearviolation of Section 10A(2)(ii) and withoutappreciating that STPI unit was not a new unit andit was formed by splitting up and reconstructionof the already existing business and the products,customers and employees were common to the preexisting unit and the unit for which the assesseeclaims exemption under Section 10A?2.Whether on the facts and in thecircumstances of the case the Tribunal was rightin holding that the telecommunication expenses andforeign currency expenses were to be excluded fromthe total turnover for the purpose of arriving ateligible profit under Section 10A when the saidexpenses cannot be treated as a part of the totalturnover and the section does not provide for suchexclusion and whether the Tribunal order isperverse and against the accounting principle?” 4.The submission of the learned counsel appearing for therespondent/assessee is that both the Substantial Questions oflaw raised by the revenue have been decided against the revenuein the assessee's own case in T.C.A.Nos.241 and 647 of 2008dated 04.06.2019. 5.Mr.J.Narayanasamy, learned Standing Counsel appearing forthe appellant/revenue strenuously contended that the AssessingOfficer has independently decided the issue for the assessmentyear under consideration, namely, 2009-10. 6.We have examined the facts of the case and also thejudgment in T.C.A.Nos.241 and 647 of 2008 dated 04.06.2019 andwe find that a fact finding exercise was done in the earlierround for the same issue. Therefore, we are of the firm viewthat both the Substantial Questions of law raised in this appealare squarely covered by the decision in T.C.A.Nos.241 and 647 of2008 dated 04.06.2019 and accordingly, needs to be answeredagainst the revenue. https://hcservices.ecourts.gov.in/hcservices/ 7.In the result, the tax case appeal fails and is dismissed.No costs. Sd/- Assistant Registrar(CS IV) //True Copy// Sub Assistant Registrar cse To 6.We have examined the facts of the case and also thejudgment in T.C.A.Nos.241 and 647 of 2008 dated 04.06.2019 andwe find that a fact finding exercise was done in the earlierround for the same issue. Therefore, we are of the firm viewthat both the Substantial Questions of law raised in this appealare squarely covered by the decision in T.C.A.Nos.241 and 647 of2008 dated 04.06.2019 and accordingly, needs to be answeredagainst the revenue. https://hcservices.ecourts.gov.in/hcservices/ 7.In the result, the tax case appeal fails and is dismissed.No costs. Sd/- Assistant Registrar(CS IV) //True Copy// Sub Assistant Registrar cse To 1.The Income Tax Appellate Tribunal, Madras 'C' Bench,Chennai.2.The Commissioner of Income Tax(Appeals)-15, No.121, Mahatma Gandhi Road, Nungambakkam, Chennai - 600034.3.The Deputy Commissioner of Income Tax Company Circle VI(2), 7[th] Floor, Wanapathy Block, No.121, Mahatma Gandhi Road, Chennai - 600034.4.The Commissioner of Income Tax, Chennai. TCA.No.486 of 2018PP(CO)KKV/24/09/2020