Authority: Madras High Court
Order Date: 28-10-2026
Case Overview
- Appellant: Commissioner of Income Tax, Chennai; Respondent: M/s A.V. Thomas Leathers and Allied Products Ltd, 22 Marshalls Road, Egmore, Chennai 600008.
- Appeal filed under Section 260‑A of the Income‑Tax Act, 1961 against the order of the Income‑Tax Appellate Tribunal, Madras ‘D’ Bench dated 08‑05‑2015 (ITA No.2170/Mds/2013) for assessment year 2009‑10.
- Two substantial questions: (i) Whether the Tribunal was correct in directing the Assessing Officer to recompute income in light of the Special Bench decision in Sak Foft, excluding freight and insurance from export turnover and total turnover for Section 10A deduction; (ii) Whether Explanation 2(iv) to Section 10A, which defines “export‑turnover” as excluding freight, telecommunication charges and foreign‑exchange expenses, supports the same view.
- Counsel for both parties (Mrs. V. Pushpa for the appellant; Ms. Samyuktha Banusekar for the respondent) agreed that the issues were settled by the Supreme Court judgment in Commissioner of Income‑Tax, Central – III v HCL Technologies Ltd (404 ITR 719 (SC)).
Final Outcome
- The High Court held that the Supreme Court decision governs the matter, answering the substantial questions in favour of the assessee and adverse to the revenue.
- The appeal is dismissed with no costs awarded to either party.
Topics: Taxation, Judicial Decision, Section 10A Deduction