Dismissed

The Commissioner of v. M/S. Allsec Technologies

Madras HC2 Sept 2020TCA/375/2018

Case brief

AI extract

What is this about?

Revenue filed tax case appeal challenging ITAT Chennai 'C' Bench order allowing deduction under Section 10A without reducing brought forward losses. Court dismissed appeal following its own precedents.

What did the court decide?

Appeal dismissed. Substantial question of law answered against the Revenue. No costs.

What the court decided

The Commissioner of Vs M/S. Allsec Technologies — Income Tax | Madras HC (2020)

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In the High Court of Judicature at Madras

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Dated : 02.9.2020

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Coram :

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The Honourable Mr.Justice T.S.SIVAGNANAM

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and

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The Honourable Mrs.Justice PUSHPA SATHYANARAYANA

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Tax Case Appeal No.375 of 2018

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The Commissioner of Income Tax, Chennai ...Appellant Vs M/s.Allsec Technologies Ltd., Chennai-18 ...Respondent

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APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 29.3.2017 made in ITA.No.2229/Mds/2016 on the file of the Income Tax Appellate Tribunal, Chennai 'C' Bench for the assessment year 2005-06, Appeal files against Income Tax Appellate Tribunal Madras ç' Bench Chennai, dated 29.03.2017 passed in ITA.No.2229/mas/2016. Assessment year 2005-2006 aginst The Commissioner of Income Tax Appears in ITA No.307/0708 New no.ITA 16/c17(A)-1 2007-2008 dated 19.05.2016 PAN No.AACCA5106G. Assessment Year 2005-2006 against the Assistant Commissioner of Income Tax Company Circle-1(1), Chennai dated 29/11/2007 PAN NO.AAACA5106G/AX3-684 Assessment year 2005-2006.

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For Appellant : Mrs.R.Hemalatha, SSC For Respondent: Mr.R.Vijayaraghavan for M/s.Subbaraya Aiyer Padmanabhan

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Judgment was delivered by T.S.Sivagnanam,J

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We have heard Mrs.R.Hemalatha, learned Senior Standing Counsel appearing for the appellant – Revenue and Mr.R.Vijayaraghavan, learned counsel appearing for the respondent – assessee.

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This appeal, filed by the Revenue under Section 260A of the Income Tax Act, 1961 (for brevity, the Act), is directed

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https://hcservices.ecourts.gov.in/hcservices/

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against the the order dated 29.3.2017 made in ITA.No.2229/Mds/2016 the file of the Income Tax Appellate Tribunal, Chennai 'C' Bench (for short, the Tribunal) for the assessment year 2005-06.

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The appeal was admitted on 10.7.2018 on the following substantial question of law :

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“Whether deduction under Section 10A of the Income Tax Act, 1961 may be allowed without reducing the brought forward losses pertaining to the year subsequent to the assessment year and setting the same off against gains of business in the current year ?”

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The issue raised in this appeal is covered by the decision of this Court in the case of M/s.Comstar Automative Technologies Private Ltd., Vs. DCIT [TCA.No.228 of 2011 dated 18.3.2020] in favour of the assessee. Further in the decision of this Court in the case of CIT Vs. M/s.Comstar Automotive Technologies Pvt. Ltd. [TCA.No.301 of 2019 dated 06.7.2020], to which, one of us (TSSJ) was a party, the above mentioned substantial question of law was decided against the Revenue following the said decision in TCA. No.228 of 2011 dated 18.3.2020, which judgment answered the only substantial question of law against the Revenue.

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