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TMI Blog2021 (9) TMI 573X X X X Extracts X X X X X X X X Extracts X X X X ..... tion as well - expenses incurred in foreign exchange for providing the technical services outside shall be allowed to exclude from the total turnover - Decided against the Revenue. - T.C.A.Nos.229 of 2015 & 444 of 2016 - - - Dated:- 6-8-2021 - Honourable Mr.Justice T.S.Sivagnanam And Honourable Mr.Justice Sathi Kumar Sukumara Kurup For the Appellant (In both Appeals) : Ms.R.Hemalatha, Senior Standing Counsel For the Respondent (In both Appeals) : Mr.R.Sivaraman COMMON JUDGMENT T.S.SIVAGNANAM, J. T.C.A.No.229 of 2015, filed by the appellant/Revenue, under Section 260A of the Income Tax Act, 1961, is directed against the order dated 20.11.2013 made in I.T.A.No.1408(Mds)/2013 on the file of the Income Tax Appellate Tribunal 'B' Bench, Chennai for the assessment year 2009-10, which was admitted on 23.07.2015, on the following substantial questions of law:- i) Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in directing the Assessing Officer to recompute the income in the light of the decision of the Special Bench in the case of Sak Soft by excluding the freight and insurance expenses both from the Exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of law, which have been framed for consideration in these appeals, have been considered by the Division Bench of this Court in the case of CIT vs. SRA Systems Ltd., [T.C.A.No.975 of 2010 dated 02.03.2021]. The relevant paragraphs of the judgment read as follows:- 4. When the appeal is taken up for hearing, Mr.R.Sivaraman, learned counsel appearing for the respondent submitted that the Question of Law no.1 is covered by the decision of the Hon'ble Supreme Court reported in [2018] 93 taxmann.com 33 (SC) [Commissioner of Income-tax, Central III Vs. HCL Technologies Ltd.], an un-reported judgment of the Division Bench of this Court dated 10.01.2019 made in T.C.A.Nos.1257 1258 of 2009 [Commissioner of Income Tax, Chennai Vs. M/s.Sak Soft Ltd.] and the Question of Law no.2 is covered by the decision of this Bench dated 19.01.2021 made in T.C.A.Nos.1470 to 1472 of 2010 [Commissioner of Income Tax, Chennai Vs. M/s.S.R.A. Systems Ltd., No.100, Valluvar Kottam High Road, Nungambakkam, Chennai] and the Question of law no.3 is covered by the decision of the Division Bench of this Court dated 18.03.2020 made in T.C.A.No.228 of 2011 [M/s.Comstar Automative Tech ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5.As the issue of allowability of deduction under Section 10A is common to all the three Assessment Years, all the three Tax Appeals are taken up together and disposed of by this common judgment. For the Assessment Year 2000-01, the assessee had filed its return of income on 29.11.2000. The assessee claimed that it was eligible for deduction under Section 10B. The return was processed on 28.03.2002. Subsequently, the Assessing Officer had reason to believe that income chargeable to tax had escaped assessment on account of the assessee Company being ineligible for deduction under Section 10A. Subsequently, a notice dated 22.03.2007 was issued under Section 148 and after giving an opportunity of hearing, the scrutiny assessment order was passed on 17.12.2007, disallowing the entire claim of deduction under Section 10B. Further, the expenditure incurred for the renovation and repairs of the rented premises of the assessee Company was disallowed by the Assessing Officer on the ground that such expenses were in the nature of capital expenditure. The Assessing Officer in his re-assessment order noted that in terms of Section 10B(ii) an undertaking in order to be elig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Company would be entitled to deduction under Section 10A and disallowance made by the Assessing Officer was not correct. Since the order passed under Section 263 itself has been set aside, the cause of action for re-assessment does not survive. (iv) Un-reported judgment of a Division Bench of this Court dated 18.03.2020 made in T.C.A.No.228 of 2011 [M/s.Comstar Automative Technologies Private Ltd., (formerly known as Visteon Powertrain Control Systems India Private Limited, Keelakaranai Village, Malrosapuram Post, Maraimalai Nagar, Chengalpattu District- 603 204 Vs. The Deputy Commissioner of Income Tax, Company Circle I (3), 121, Nungambakkam High Road, Chennai 600 034] , the Division Bench held as follows: ... 27.Therefore the law has been settled by the said decision of the Hon'ble Apex Court, where in clear terms, it has been held that, the deductions either under Section 10A or 10B would be made while computing the gross total income of the eligible undertaking (like the Assessee) under Chapter IV of the Act and not at the stage of computation of the total income under Chapter VI of the Act. 28.Here is the case in hand, the total income wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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