Tca/115/2018 Of Commissioner Of Income Tax v. M/S Sqs India Bfsi Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal No.115 of 2018 Commissioner of Income Tax,Chennai. .. Appellant/Appellant-vs- M/s.SQS India BFSI Ltd., (FormerlyThinksoft Global Services Pvt. Ltd.,),6A, Sixth Floor, Prince Infocity II,No.283/3 & 283/4, Rajiv Gandhi Salai(OMR), Kandanchavadi,Chennai – 600 096.PAN: AABCT 0976G .. Respondent/Respondent Appeal under Section 260A of the Income-tax Act, 1961against the order dated 30.09.2016 on the file of the Income-taxAppellate Tribunal 'A' Bench, Chennai, in I.T.A.No.998/MDS/2016for the assessment year 2007-08 and against the order passed bythe Commissioner of Income TAx Appeals-15 chennai-34 and made inITA.No.286/CIT/A-15/14-15 dated 11.01.2016 and against the orderpassed by the Deputy Commissioner Income Tax, Company Circle-(III)(2) Chennai-34 and made in GIR/PAN AABC70976G dated12/03/2014 for the Assessment year 2007-08. (Judgment was delivered by T.S.Sivagnanam, J.) This appeal, filed by the appellant/revenue under Section260A of the Income-tax Act, 1961 (hereinafter referred to as“the Act”), is directed against the order dated 30.09.2016passed by the Income-tax Appellate Tribunal 'A' Bench, Chennai, https://hcservices.ecourts.gov.in/hcservices/ in I.T.A.No.998/MDS/2016 for the assessment year 2007-08. 2.The above appeal was admitted on 27.03.2018 on thefollowing substantial question of law:-“Whether on the facts and in the circumstancesof the case, the Tribunal was right in holdingthat foreign exchange gain, expenses incurredtowards connectivity charges and foreign currencyexpenses etc., were to be excluded from the exportturnover as well as total turnover for the purposeof arriving at eligible profit under Section 10Aof the Income Tax, 1961?” 3.It is not disputed by the revenue that the SubstantialQuestion of law framed for consideration has been answeredagainst the revenue by the Hon'ble Supreme Court in the case ofCommissioner of Income tax, Central-III, HCL Technologies Ltd.[(2018) 93 taxmann.com 33 (SC)]. In the said decision it washeld that Definition of 'total turnover' given under sections80HHC and 80HHE cannot be adopted for purpose of section 10a astechnical meaning of total turnover, which does not envisagereduction of any expenses from total amount is to be taken intoconsideration for computing deduction under Section 10A; whenmeaning is clear, there is no necessity of importing meaning oftotal turnover from other provisions. 4.Following the above said decision, the appeal filed by therevenue is dismissed and the substantial question of law isanswered against the revenue. No costs. cse To 1.The Income-tax Appellate Tribunal 'A' Bench, Chennai. 2.The Commissioner of Income TAx Chennai3.The Commissioner of Income TaxAppeals-15 Chennai-34 4.The Deputy Commissioner of Income Tax, Company Circle III(2) Chennai-34 +1 cc to Mr.T.R.Senthil Kumar Advocate sr74196 +1 cc to Mr.Subbaraya Iyer Padmanabhan Advocate sr 74736 T.C.A.No.115 of 2018 pvs(co)aa17/10/2019