Karnataka High Court
The Deputy Commissioner Of Income Tax vs Vodafone Qatar Pqsc on 2 September, 2024
Author: S.G.Pandit
Bench: S.G.Pandit
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NC: 2024:KHC:35632-DB
WA No. 692 of 2024
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 2ND DAY OF SEPTEMBER, 2024
PRESENT
THE HON'BLE MR JUSTICE S.G.PANDIT
AND
THE HON'BLE MR JUSTICE C.M. POONACHA
WRIT APPEAL NO. 692 OF 2024 (T-IT)
BETWEEN:
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.
...APPELLANTS
Digitally signed (BY SRI. SANMATHI E. I., ADV.)
by
MARIGANGAIAH
PREMAKUMARI AND:
Location: HIGH
COURT OF 1. VODAFONE QATAR PQSC
KARNATAKA
MASHEIREB DOWNTOWN DOHA,
ZONE 3, STREET 981,
BUILDING 2, 4TH FLOOR,
PO BOX 27727, DOHA,
QATAR, PAN-AAHCV8797K,
(REP. BY AUTHORIZED SIGNATORY
SHEIKH HAMAD
ABDULLA J A AL THANI,
AGE 43 YEARS,
OCC: SERVICE, R/O MSHEIREB,
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NC: 2024:KHC:35632-DB
WA No. 692 of 2024
DOWNTOWN DOHA, ZONE 3,
STREET, 981, BUILDING 2,
4TH FLOOR, PO BOX 27727
DOHA QATAR).
2. VODAFONE IDEA LIMITED
MARUTI INFOTECH CENTRE, 11/1, 12/1,
KORAMANGALA, AMARJYOTHI LAYOUT,
BENGALURU-560071
REPRESENTED BY ITS DIRECTOR.
...RESPONDENTS
(BY SRI.ANKUR P.D., ADV. FOR
SRI K.R.VASUDEVAN, ADV.)
THIS WRIT APPEAL IS FILED UNDER SECTION 4 OF THE
KARNATAKA HIGH COURT ACT PRAYING TO 1) TO SET ASIDE
THE ORDER DATED 02.11.2023 IN WRIT PETITION NO.5112 OF
2023 (T-IT) PASSED BY THE LEARNED SINGLE JUDGE AND 2)
GRANT SUCH OTHER ORDER AS THIS COURT DEEMS FIT
UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE, IN
THE INTEREST OF EQUITY AND JUSTICE.
THIS APPEAL, COMING ON FOR ORDERS, THIS DAY,
JUDGMENT WAS DELIVERED THEREIN AS UNDER:
CORAM: HON'BLE MR JUSTICE S.G.PANDIT
AND
HON'BLE MR JUSTICE C.M. POONACHA
ORAL JUDGMENT
(PER: HON'BLE MR JUSTICE S.G.PANDIT) Heard Sri. E.I.Sanmathi, learned counsel for the appellants and learned counsel Sri.Ankur P.D. for respondents. -3-
NC: 2024:KHC:35632-DB WA No. 692 of 2024
2. Perused the appeal papers.
3. The question involved in the appeal is as to whether interconnect service charges paid would amount to royalty.
4. The above issue was considered by a Co-ordinate Bench of this court in ITA.No.160/2015 and connected appeals. By judgment dated 14.07.2023 it is held that interconnect service charges would not constitute royalty. Paragraph No.21 of the judgment reads as follows:
"The third question is, whether the payments made to NTOS for providing interconnect services and transfer of capacity in foreign countries is chargeable to tax as royalty. It was argued by Shri.Pardiwala, that for subsequent years in assessee's own case, the ITAT has held that tax is not deductable when payment is made to non-resident telecom operator. This factual aspect is not refuted. Thus the Revenue has reviewed its earlier stand for the subsequent assessment years placing reliance on Viacom etc35, rendered by the ITAT. In that view of the matter this question also needs to be answered against the Revenue."
5. Learned Single Judge has also placed reliance on the above decision of the Co-ordinate Bench. Therefore, we do not find any infirmity in the order under challenge. -4-
NC: 2024:KHC:35632-DB WA No. 692 of 2024
6. Following the decision of Co-ordinate Bench dated 14.07.2023 in ITA No.160/2015 and connected appeals, the above appeal stands dismissed.
SD/-
(S.G.PANDIT) JUDGE SD/-
(C.M. POONACHA) JUDGE MPK CT:bms List No.: 1 Sl No.: 22