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Karnataka High Court

Vodafone Qatar P Q S C vs The Deputy Commissioner Of Income Tax on 2 November, 2023

Author: B M Shyam Prasad

Bench: B M Shyam Prasad

                                     -1-
                                                    NC: 2023:KHC:38803
                                                 WP No. 5056 of 2023
                                             C/W WP No. 5112 of 2023



            IN THE HIGH COURT OF KARNATAKA AT BENGALURU
                 DATED THIS THE 2ND DAY OF NOVEMBER, 2023
                                  BEFORE
                 THE HON'BLE MR JUSTICE B M SHYAM PRASAD
                    WRIT PETITION NO. 5056 OF 2023 (T-IT)
                                    C/W
                    WRIT PETITION NO. 5112 OF 2023 (T-IT)
            IN WP NO. 5056/2023
            BETWEEN:

                 VODAFONE QATAR P Q S C
                 MASHEIREB DOWNTOWN DOHA,
                 ZONE 3, STREET 981, BUILDING 2,
                 4TH FLOOR, PO BOX 27727,
                 DOHA, QATAR, PAN- AAHCV8797K
                 REPRESENTED BY
                 AUTHORISED SIGNATORY
                 SHEIKH HAMAD ABDULLA
                 J A AL-THANI
                 AGE-43 YEARS, OCC-SERVICE
                 R/O . MSHEIREB, DOWNTOWN DOHA,
                 ZONE 3, STREET 981,
Digitally        BUILDING 2, 4TH FLOOR,
signed by
NARASIMHA        PO BOX 27727, DOHA, QATAR.
MURTHY
VANAMALA                                         ...PETITIONER
Location:
HIGH        (BY SRI. PAI DHUNGAT ANKUR, ADVOCATE)
COURT OF
KARNATAKA   AND:

            1.    THE DEPUTY COMMISSIONER
                  OF INCOME TAX
                  ASSESSMENT CIRCLE 2(1)
                  BMTC BUILDING, 80FT. ROAD, 6TH BLOCK,
                  NEAR KHB GAMES VILLAGE,
                  KORAMANGALA, BENGALURU - 560095.
                              -2-
                                              NC: 2023:KHC:38803
                                            WP No. 5056 of 2023
                                        C/W WP No. 5112 of 2023



2.     THE COMMISSIONER OF INCOME-TAX-2
       BMTC BUILDING, 80FT. ROAD, 6TH BLOCK,
       NEAR KHB GAMES VILLAGE,
       KORAMANGALA, BENGALURU - 560095.

3.     VODAFONE IDEA LIMITED
       MARUTI INFOTECH CENTRE,
       11/1, 12/1, KORAMANGALA,
       AMAR JYOTI LAYOUT,
       BENGALURU - 560-071.
       REPRESENTED BY ITS DIRECTORS.
                                   ...RESPONDENTS
(BY SRI. DILIP M.,ADVOCATE FOR R1& R2;
     R3 DISPENSED WITH VIDE ORDER DATED
     02.11.2023)

        THIS WP IS FILED UNDER ARTICLE 226 AND 227
OF THE CONSTITUTION OF INDIA PRAYING TO QUASH
THE FINAL ASSESSMENT ORDER PASSED BY THE R-1
IN ANN-N IMPUGNED FINAL ASSESSMENT ORDER
DATED        23.12.2022   PASSED   BY   THE   R-1   UNDER
SECTION 143(3) READ WITH SECTION 147 READ WITH
SECTION 144C OF THE IT ACT ALONG WITH DEMAND
NOTICE ISSUED UNDER SECTION 156 OF THE IT ACT
IN     DIN    AND    ORDER    NO.ITBA/AST/M/147/2022-
23/10482067673(1) FOR THE AY 2015-16.
IN WP NO. 5112/2023
BETWEEN:

      VODAFONE QATAR P Q S C
      MASHEIREB DOWNTOWN DOHA,
      ZONE 3, STREET 981, BUILDING 2,
      4TH FLOOR, PO BOX 27727,
                        -3-
                                        NC: 2023:KHC:38803
                                      WP No. 5056 of 2023
                                  C/W WP No. 5112 of 2023



     DOHA, QATAR
     PAN- AAHCV8797K

     REPRESENTED BY
     AUTHORISED SIGNATORY
     SHEIKH HAMAD ABDULLA
     J A AL-THANI
     AGE-43 YEARS, OCC-SERVICE
     R/O . MSHEIREB DOWNTOWN DOHA,
     ZONE 3, STREET 981,
     BUILDING 2,
     4TH FLOOR, PO BOX 27727,
     DOHA, QATAR.
                                  ...PETITIONER
(BY SRI. PAI DHUNGAT ANKUR.,ADVOCATE)
AND:

1.   THE DEPUTY COMMISSIONER
     OF INCOME TAX
     ASSESSMENT CIRCLE 2(1)
     BMTC BUILDING, 80FT. ROAD,
     6TH BLOCK, NEAR KHB GAMES VILLAGE,
     KORAMANGALA,
     BENGALURU - 560095.

2.   THE COMMISSIONER OF
     INCOME-TAX-2
     BMTC BUILDING, 80FT. ROAD,
     6TH BLOCK, NEAR KHB GAMES
     VILLAGE,
     KORAMANGALA,
     BENGALURU - 560095.

3.   VODAFONE IDEA LIMITED
     MARUTI INFOTECH CENTRE,
     11/1, 12/1, KORAMANGALA,
     AMAR JYOTI LAYOUT,
                              -4-
                                              NC: 2023:KHC:38803
                                            WP No. 5056 of 2023
                                        C/W WP No. 5112 of 2023



      BENGALURU - 560-071.
      REPRESENTED BY ITS DIRECTORS.
                                  ...RESPONDENTS
(BY SRI. DILIP M.,ADVOCATE FOR R1& R2;
 R3 DISPENSED WITH VIDE ORDER DATED
     02.11.2023)

        THIS WP IS FILED UNDER ARTICLE 226 AND 227
OF THE CONSTITUTION OF INDIA PRAYING TO QUASH
THE FINAL ASSESSMENT ORDER PASSED BY THE R-1
IN ANN-N- IMPUGNED FINAL ASSESSMENT ORDER
DATED        23.12.2022   PASSED   BY   THE   R-1    UNDER
SECTION 143(3) READ WITH SECTION 147 READ WITH
SECTION 144C OF THE IT ACT ALONG WITH DEMAND
NOTICE ISSUED UNDER SECTION 156 OF THE IT ACT
IN     DIN    AND    ORDER    NO.ITBA/AST/M/147/2022-
23/10482067673(1) FOR THE AY 2015-16.

        THESE PETITIONS, COMING ON FOR ORDERS,
THIS DAY, THE COURT MADE THE FOLLOWING:

                           ORDER

The question for consideration in these writ petitions would be whether they must stand disposed of in the light of the Division Bench's order dated 14.07.2023 in ITA No.160/2015 and connected matters and the disposal of similar writ petitions in WP No.51999/2019 connected with WP -5- NC: 2023:KHC:38803 WP No. 5056 of 2023 C/W WP No. 5112 of 2023 No.53137/2008 and in WP No.5867/2022 and connected matters in the light of such decision. Sri Pai Dhungat Ankur, the learned Counsel for the petitioners, and Sri M.Dilip, the learned counsel for the respondents, are heard for final disposal.

It remains undisputed that the petitioners, who are the recipients of certain amounts from Indian entities, cannot be subject to assessment if the Division Bench's order dated 14.07.2023 prevails. However, Sri M.Dilip submits that the order dated 14.07.2023 has been called in question by the Revenue before the Hon'ble Supreme Court, and therefore this Court, may not make any observation on the merits of the petitioners' grounds as against the lack of opportunity or service of due notices.

Sri Pai Dhungat Ankur, in rejoinder, submits that in the unlikely event of the Revenue succeeding in its challenge against the Division Bench's order dated 14.07.2023, the petitioners must be reserved -6- NC: 2023:KHC:38803 WP No. 5056 of 2023 C/W WP No. 5112 of 2023 liberty to seek revival of these petitions if these petitions stand disposed of in the light of the Division Bench's order dated 14.07.2023 and the later disposal of the other similar petitions.

These submissions are considered, and this Court is of the considered view that the petitions must stand disposed of quashing the impugned assessment orders as also the penalty orders but with liberty to the petitioners to seek revival of these petitions subject to the outcome of the challenge by the Revenue before the Hon'ble Supreme Court as against the Division Bench's order dated 14.07.2023 in ITA No.160/2015 and other matters as certain other petitioner's specific grounds are urged.

The petitions stand disposed of.

SD/-

JUDGE AN/-