The Commissioner Of Income-Tax,Chennai v. M/S.cosmic Global Ltd.,Old

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.348 of 2017 The Commissioner of Income-tax,Chennai... Appellant -vs- M/s.Cosmic Global Ltd.,Old No.3, New No.77, 1[st] Floor,Apex Plaza, Nungambakkam High Road,Chennai-600 034.PAN: .. RespondentAppeal under Section 260A of the Income-tax Act, 1961,againsttheorderdated25.11.2016,madeinI.T.A.No.649/Mds/2016 on the file of the Income Tax AppellateTribunal 'A' Bench, Chennai for the assessment year 2011-12.Against the Order of the Commissioner of Income Tax (Appeals)-1,121, Mahatma Gandhi Road, Chennai-34 order dated 08/12/2015 madein New ITA 170/CIT(A)-1/2014-15 for the assessment year 2011-12and against the order of the Deputy Commissioner of Income Ta,Company circle i (3), Aayakar Bhavan, 121 MG Road, Nungambakkam,Chennai order dated 25/03/2014 made in PAN/GIR No. AAACT8201Bfor the assessment Year 2011-12. This appeal filed by the Revenue under Section 260A of theIncome-tax Act, 1961 is directed against the order dated25.11.2016, made in I.T.A.No.649/Mds/2016 on the file of the https://hcservices.ecourts.gov.in/hcservices/ Income Tax Appellate Tribunal 'A' Bench, Chennai for theassessment year 2011-12. 2.The appeal has been admitted on 19.07.2017, on thefollowing substantial questions of law:-“(i) Whether fees and/or charges incurred forservices rendered by translators are fees fortechnical services as per Section 194J of theIncome Tax Act, 1961?(ii) Whether expenditure on translation chargesincurred by the assessee is disallowable underSection 40(a)(i) of the Income Tax Act, 1961? and(iii) Whether payment to foreign freelancetranslators would fall within the purview of feesfor technical services detailed in Explanation (2)to Section 9(1)(vii) of the Income Tax Act, 1961?” 3.Heard Mr.T.Ravikumar and Ms.R.Hemalatha, learned SeniorStanding Counsel for the appellant – and Mr.R.Sivaraman, learnedcounsel for the respondent. 4.The learned Senior Standing Counsel for the appellantsubmits that the above appeal is not pursued by the Revenue onaccount of the low tax effect in terms of Circular No.17/2019,dated 08.08.2019 issued by the Central Board of Direct Taxes. Bythe said Circular, the monetary limit for filing or pursuing anappeal before the High Court has been increased to Rs.1 Crore.It is further submitted that the tax effect in this case is lessthan the threshold limit. 5.In the light of the said submissions, the above tax caseappeal is dismissed on account of the low tax effect. Thesubstantial questions of law framed are left open. In the eventthe tax effect is above the threshold limit fixed in the saidcircular, liberty is granted to the Revenue to make a mention tothis Court to restore the appeal to be heard and decided onmerits. No costs. Assistant Registrar (CS-VIII) abr 1.The Income Tax Appellate Tribunal 'A' Bench, Chennai. https://hcservices.ecourts.gov.in/hcservices/ 2.The Commissioner of Income Tax (Appeals), 121, Mahatma Gandhi Road, Chennai-34. 121, Mahatma Gandhi Road, Chennai-34. +1cc to Mr.T.Ravi Kumar, Standing Counsel, S.R.No. 74354 T.C.A.No.348 of 2017 RV(CO)GN(27/11/2019)