Tca/483/2018 Of Commissioner Of Income Tax v. Scope International Pvt 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.483 OF 2018 Commissioner of Income Tax,Chennai. .. Appellant/Appellant-vs- M/s.Scope International Pvt. Ltd.,Ist Floor, Europe Building,Grindlays Gardens, No.1,Haddows Road, Nungambakkam,Chennai – 600 006.PAN: AAECS 9043E.. Respondent/Respondent Appeal under Section 260A of the Income-tax Act, 1961against the order dated 08.12.2016 on the file of the Income-taxAppellate Tribunal 'A' Bench,Chennai, in I.T.A.No.2314/MDS/2016.Against the Order of the Commissioner of Income Tax (Appeals)-15, Chennain in ITA.No.10/CIT(A)-15/2014-15, dated 24.05.2016against the Assessment order of the Deputy Commissioner ofIncomeTaxCompanyCircleVI(1),ChennaiinGIR/PAN.NO. , dated 29.03.2014 for the Assessment Year2010-11. For Appellant:Mr.J.NarayanasamySenior Standing Counsel For Respondent :Mr.S.P.Chidambaram 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 08.12.2016passed by the Income-tax Appellate Tribunal 'A' Bench, Chennai,in I.T.A.No.2314/MDS/2016 for the assessment year 2010-11. https://hcservices.ecourts.gov.in/hcservices/ 2.The above appeal has been filed by raising the followingsubstantial question of law:- “Whether on the facts and in the circumstancesof the case the order of the Tribunal was right inlaw and perverse on facts and holding that thetelecommunication expenses and foreign currencyexpenses had to be excluded from the totalturnover while computing the deduction u/s.10A ofthe Act when the section does not provide for suchexclusion and the said expenses cannot form partof the total turnover and whether the Tribunalorder is perverse and against the accounting principle? 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. Sd/- Assistant Registrar(CS III) //True Copy// cse Sub Assistant Registrar To 1.The Income-tax Appellate Tribunal 'A' Bench, Chennai. 2.The Commissioner of Income Tax (Appeals)-15,Chennai. 3.The Deputy Commissioner of Income Tax,Company Circle VI(1), Chennai.Company Circle VI(1), Chennai. +1cc to Mr.T.R.Senthil Kumar, Advocate, S.R.No.74197 +1cc to M/s.Subbarayar, Advocate, S.R.No.74738 T.C.A.No.483 of 2018 NMI(CO)CS/24/10/2019