THE COMMISSIONER OF INCOME T vs. M/S COSMIC GLOBAL LTD

T.C.A.No.348 of 2017 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 29.08.2019 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM and THE 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, 1st Floor, Apex Plaza, Nungambakkam High Road, Chennai-600 034. PAN: AAACT8201B .. Respondent Appeal under Section 260A of the Income-tax Act, 1961, against the order dated 25.11.2016, made in I.T.A.No.649/Mds/2016 on the file of the Income Tax Appellate Tribunal 'A' Bench, Chennai for the assessment year 2011-12. For Appellant : Mr.T.Ravikumar Senior Standing Counsel & : Ms.R.Hemalatha Senior Standing Counsel For Respondent : Mr.R.Sivaraman ****** 1/4 http://www.judis.nic.in T.C.A.No.348 of 2017 JUDGMENT (Delivered by T.S.Sivagnanam, J.) This appeal filed by the Revenue under Section 260A of the Income-tax Act, 1961 is directed against the order dated 25.11.2016, made in I.T.A.No.649/Mds/2016 on the file of the Income Tax Appellate Tribunal 'A' Bench, Chennai for the assessment year 2011-12. 2.The appeal has been admitted on 19.07.2017, on the following substantial questions of law:- “(i) Whether fees and/or charges incurred for services rendered by translators are fees for technical services as per Section 194J of the Income Tax Act, 1961? (ii) Whether expenditure on translation charges incurred by the assessee is disallowable under Section 40(a)(i) of the Income Tax Act, 1961? and (iii) Whether payment to foreign freelance translators would fall within the purview of fees for 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 Senior Standing Counsel for the appellant – and Mr.R.Sivaraman, learned counsel for the respondent. 2/4 http://www.judis.nic.in T.C.A.No.348 of 2017 4.The learned Senior Standing Counsel for the appellant submits that the above appeal is not pursued by the Revenue on account of the low tax effect in terms of Circular No.17/2019, dated 08.08.2019 issued by the Central Board of Direct Taxes. By the said Circular, the monetary limit for filing or pursuing an appeal before the High Court has been increased to Rs.1 Crore. It is further submitted that the tax effect in this case is less than the threshold limit. 5.In the light of the said submissions, the above tax case appeal is dismissed on account of the low tax effect. The substantial questions of law framed are left open. In the event the tax effect is above the threshold limit fixed in the said circular, liberty is granted to the Revenue to make a mention to this Court to restore the appeal to be heard and decided on merits. No costs. (T.S.S., J.) (V.B.S., J.) 29.08.2019 Index : Yes/No Speaking/Non-Speaking Order abr 3/4 http://www.judis.nic.in T.C.A.No.348 of 2017 T.S.Sivagnanam, J. and V.Bhavani Subbaroyan, J. (abr) To 1.M/s.Cosmic Global Ltd., Old No.3, New No.77, 1st Floor, Apex Plaza, Nungambakkam High Road, Chennai-600 034. 2.The Income Tax Appellate Tribunal 'A' Bench, Chennai. T.C.A.No.348 of 2017 29.08.2019 4/4 http://www.judis.nic.in