THE COMMISSIONER OF INCOME TAX vs. M/S IBASIS NETHERLANDS B.V

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ITA/29/2024HC KarnatakaKAHC01000352202410 June 2024Bench: KRISHNA S DIXIT,RAMACHANDRA D. HUDDAR3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court noted that the respondent's counsel submitted that the subject matter of the appeal is substantially similar to a previous case, I.T.A.No.8/2024 (THE COMMISSIONER OF INCOME TAX AND ANOTHER vs. M/S BELGACOM INTERNATIONAL CARRIER SERVICES SA), which was disposed of by this Court on 27.05.2024. The Revenue's counsel could not differentiate the present case from the cited one. Citing a Division Bench judgment in A.V.VINODA & ANOTHER Vs. STATE OF KARNATAKA BY ITS COMMISSIONER & SECRETARY (1974), which held that like cases should be treated alike and similar relief granted to one litigant cannot be denied to others in similar circumstances, the Court disposed of the appeal in terms of the order dated 14.07.2023 in VODAFONE IDEA LTD., vs. DEPUTY DIRECTOR OF INCOME-TAX (INTERNATIONAL TAXATION), [2023] 152 taxmann.com 575 (Karnataka). No specific issue was left undecided; the appeal was disposed of based on parity with earlier decisions.

What were the facts?

The appeal is filed by the Revenue (Commissioner of Income Tax and Deputy Commissioner of Income Tax) against an order dated 09/10/2023 passed by the Income-Tax Appellate Tribunal (ITAT), Bengaluru, in IT(IT)A No. 202/BANG/2023. The assessment year in question is 2014-2015. The Revenue seeks to set aside the ITAT's order and confirm the order of the Dispute Resolution Panel (DRP), which in turn had confirmed the order of the Deputy Commissioner of Income Tax. The respondent is M/s Ibasis Netherlands B.V. (formerly KPN Global Carrier Services B.V.).

What were the issues?

1. Whether the substantial questions of law formulated in the appeal warrant consideration by this Court, and if so, what are they? (Question of law) Assessee's Contention: The respondent submits that the subject matter of this appeal is substantially similar to the ones in I.T.A.No.8/2024 between THE COMMISSIONER OF INCOME TAX AND ANOTHER vs. M/S BELGACOM INTERNATIONAL CARRIER SERVICES SA, which was disposed of by this Court vide judgment dated 27.05.2024. Therefore, this appeal should also be disposed of accordingly. Revenue's Contention: The learned Panel Counsel for the Revenue, despite making submissions, is not in a position to differentiate the present case from the one referred to by the respondent.

Which sections of the Income-tax Act were involved?

Section 260-A

AI-generated summary — verify with the full judgment below

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NC: 2024:KHC:19933-DB ITA No. 29 of 2024

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 10TH DAY OF JUNE, 2024 PRESENT THE HON'BLE MR JUSTICE KRISHNA S DIXIT AND THE HON'BLE MR JUSTICE RAMACHANDRA D. HUDDAR INCOME TAX APPEAL NO. 29 OF 2024 BETWEEN:

1.

THE COMMISSIONER OF INCOME TAX, INTERNATIONAL TAXATION, 4TH FLOOR, BMTC BUILDING, 80 FEET ROAD, KORMANGALA, BENGALURU - 560 095.

2.

THE DEPUTY COMMISSIONER OF INCOME TAX, INTERNATIONAL TAXATION, CIRCLE-2(2), 4TH FLOOR, BMTC BUILDING, 80 FEET ROAD, KORMANGALA, BENGALURU - 560 095. …APPELLANTS (BY SRI. M DILIP., ADVOCATE)

AND:

M/S IBASIS NETHERLANDS B.V, (EARLIER KNOWN AS KPN GLOBAL CARRIER SERVICES B.V.,) KPN CORPORATE TAX DEPARTMENT, P.O. BOX NO.25182, 3001 HD, ROTTERDAM NETHERLANDS, PAN: AACCI 4050P. …RESPONDENT (BY SMT.TANMAYEE RAJKUMAR., ADVOCATE)

THIS INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 09/10/2023 PASSED IN IT(IT)A NO.202/BANG/2023, FOR THE ASSESSMENT YEAR 2014-2015 PRAYING TO 1) FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN AND

Digitally signed by CHETAN B C Location: HIGH COURT OF KARNATAKA

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NC: 2024:KHC:19933-DB ITA No. 29 of 2024

2) ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME-TAX APPELLATE TRIBUNAL, BENGALURU IN IT(IT)A NO.202/BANG/2023 DATED 09/10/2023 FOR ASSESSMENT YEAR 2014-2015 ANNEXURE A AND CONFIRM THE ORDER OF THE DRP CONFIRMING THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX, INTERNATIONAL TAXATION, CIRCLE 2(2), BENGALURU AND ETC.,

THIS INCOME TAX APPEAL COMING ON FOR ORDERS THIS DAY, KRISHNA S DIXIT.J., DELIVERED THE FOLLOWING:

JUDGMENT

Learned counsel appearing for the respondent submits that the subject matter of this appeal is substantially similar to the ones in I.T.A.No.8/2024 between THE COMMISSIONER OF INCOME TAX AND ANOTHER vs. M/S BELGACOM INTERNATIONAL CARRIER SERVICES SA, heard & disposed off by this court vide judgment dated 27.05.2024 and therefore, this appeal too be disposed off accordingly. 2. Learned Panel Counsel appearing for the Revenue despite making submissions, is not in a position to differentiate between the case at hand and the one referred to.

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NC: 2024:KHC:19933-DB ITA No. 29 of 2024

3.

A Division Bench of this Court in W.A.Nos.932- 933/1974 between A.V.VINODA & ANOTHER Vs. STATE OF KARNATAKA BY ITS COMMISSIONER & SECRETARY disposed off on 11.12.1974, has held that the Court should treat like-cases alike, and if relief is granted to a litigant, similar relief cannot be denied to other similarly circumstanced litigants, there being no derogatory circumstances. In the above circumstances, this appeal too is accordingly disposed off in terms of order dated 14.07.2023 between VODAFONE IDEA LTD., vs. DEPUTY DIRECTOR OF INCOME-TAX (INTERNATIONAL TAXATION), [2023] 152 taxmann.com 575 (Karnataka). Costs made easy.

Sd/- JUDGE

Sd/- JUDGE cbc List No.: 1 Sl No.: 4

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