T.C.A.No.486 of 2018 In High Court of Judicature at Madras Dated : 23.07.2020 Coram : Honourable Mr.Justice T.S.SIVAGNANAM and 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, 7th Street, Dr.VSI Estate, Phase II, Thiruvanmiyur, Chennai 600034. PAN: AAACI0947F ...Respondent APPEAL under Section 260A of Income Tax Act, 1961 against order dated 23.11.2016 in ITA No.2010/Mds/2016 on file of Income Tax Appellate Tribunal Chennai 'C' Bench for assessment year 2009-10. For Appellant : Mr.J.Narayanasamy Standing Counsel For Respondent : Mr.S.P.Chidambaram 1/5 http://www.judis.nic.in T.C.A.No.486 of 2018 Judgment was delivered by T.S.SIVAGNANAM,J We have elaborately heard Mr.J.Narayanasamy, learned Standing Counsel appearing for appellant/revenue and Mr.S.P.Chidambaram, learned counsel appearing for respondent. 2.This appeal, filed by revenue under Section 260A of Income Tax Act, 1961 ( Act for brevity), is directed against order dated 23.11.2016 passed by Income Tax Appellate Tribunal, Chennai 'C' Bench (for brevity, Tribunal) in ITA No.2010/Mds/2016 for assessment year 2009-10. 3.This appeal was admitted on 05.12.2019 on following substantial questions of law: 1.Whether on facts and in circumstances of case Tribunal was right in holding that assessee is entitled for exemption under Section 10A when there is clear violation of Section 10A(2)(ii) and without appreciating that STPI unit was not new unit and it was formed by splitting up and reconstruction of already existing business and products, customers and employees were common to pre existing unit and unit for 2/5 http://www.judis.nic.in T.C.A.No.486 of 2018 which assessee claims exemption under Section 10A? 2.Whether on facts and in circumstances of case Tribunal was right in holding that telecommunication expenses and foreign currency expenses were to be excluded from total turnover for purpose of arriving at eligible profit under Section 10A when said expenses cannot be treated as part of total turnover and section does not provide for such exclusion and whether Tribunal order is perverse and against accounting principle? 4.The submission of learned counsel appearing for respondent/assessee is that both Substantial Questions of law raised by revenue have been decided against revenue in assessee's own case in T.C.A.Nos.241 and 647 of 2008 dated 04.06.2019. 5.Mr.J.Narayanasamy, learned Standing Counsel appearing for appellant/revenue strenuously contended that Assessing Officer has independently decided issue for assessment year under consideration, namely, 2009-10. 3/5 http://www.judis.nic.in T.C.A.No.486 of 2018 6.We have examined facts of case and also judgment in T.C.A.Nos.241 and 647 of 2008 dated 04.06.2019 and we find that fact finding exercise was done in earlier round for same issue. Therefore, we are of firm view that both Substantial Questions of law raised in this appeal are squarely covered by decision in T.C.A.Nos.241 and 647 of 2008 dated 04.06.2019 and accordingly, needs to be answered against revenue. 7.In result, tax case appeal fails and is dismissed. No costs. (T.S.S.J.) (V.B.S.J.) 23.07.2020 Speaking (or) Non Speaking Order Index : Yes (or) No Internet : Yes (or) No To Income Tax Appellate Tribunal, Madras 'C' Bench. cse 4/5 http://www.judis.nic.in T.C.A.No.486 of 2018 T.S.SIVAGNANAM,J AND V.BHAVANI SUBBAROYAN,J cse TCA.No.486 of 2018 23.07.2020 5/5 http://www.judis.nic.in Commissioner of Income-tax, Chennai v. Servion Global Solutions Ltd